Sources: Elon Musk verbally guaranteed some US banks that they would not lose money on the Twitter deal; banks face serious losses on the “uninvestable” debt
it felt way too nerdy. Bluesky was unhinged in a cringy way. Threads, however, feels just right. It seems at least right now (no guarantee it'll be like this forever), people try to be nice. Engagement-farmers get actively blocked, muted, or hidden. … Jacky / @jjackyliang : 2/3 I *really* disliked this, and I think of myself as someone that's generally pretty chill. I hated the way the social network was making me angrier, more annoyed, more impatient, and just saw a side of people that was not good. Obviously, after E*** took over, things went downhill even faster. … Jacky / @jjackyliang : Warning: talking about X/Twitter Part of the reason why I quit using X/Twitter before even Threads/Bluesky/Mastodon came out, was that even before E*** took over, the site was very obviously pushing bait, rage, and engagement-farming content to me. … Alejandra Caraballo / @esqueer_ : Starting to see far right grifters post more on Threads. It's inevitable. They get an entire platform in Twitter that caters to their every whim but the reality is they hate being in a bubble. That's why Gab, Truth, Parler, etc. didn't work. They have to be where normal people are to antagonize and harass them. Kali Hays / @kalihays1 : Had to look back and X/Twitter's App Store ranking for a story. As of today, it is in 99th place. Apple only tracks the top 100. This is down from four days ago, when X was in 95th place. That's down from 6 months ago when X was in 53rd place. That's down from 2022, just before Elon Musk's takeover, when Twitter was in 34th place. … Bluesky: @ibegyourpudding.bsky.social : Currently ringing my bank to give them verbal guarantees that they will not lose money on my overdrawn purchase of a Canes Chicken ‘Caniac Combo’ [embedded post] @cocktailhag.bsky.social : Like taking candy from a baby. — Wonder if they'll get another bailout. [embedded post] @basicchunnel.bsky.social : Love to make it to enterprise-level management of financial institutions and put myself in a position to cite *verbal agreements* [embedded post] @shiftingbaselines.bsky.social : Stories like this one cut straight to one of the largest advantages rich people have when it comes to building wealth. If you or I walk into a bank looking for a loan, they will do EXTENSIVE due diligence on us. When a rich person does, the bank will bend over backwards to accomodate them. … Craig Burley / @craigburley.bsky.social : I wonder if those guarantees are reflected as such on the capital risk sheets [embedded post] Luxe / @luxeprogressive.bsky.social : He really said trust me bro and they were like aight [embedded post] @ninjamonkky.bsky.social : I feel like a lot of bankers, seem to not be very good at, you know, banking. Like we've pretty much bailed all the big ones out at least once, but they'll still just give any billionaire tons of debt to leverage for their pet rock zoo or nonprofit Nazi meet cute site [embedded post] @rodericka1.bsky.social : Very cool that people like Musk and Trump can use banks like an ATM and not ever worry about paying them back while the banks sue Joe Schmo for 3 overdraft fees. @genxjamerican.com : Just gonna note briefly here that this is the same financial industry that routinely discriminates against black and brown people trying to borrow money to buy homes—even when they have good income and credit. They simple took Apartheid Clyde's word for it that they wouldn't lose money. [embedded post] Matt Gordon / @drmattyg.com : Brb going to ask my bank for $1bn and give them Verbal Assurances that they'll get it back. DM me if you wanna join my NYE Yacht Party [embedded post] Patrick Cosmos / @veryimportant.lawyer : If you are betting on “which of Elon Musk's failing companies will tank the national economy first” please note that the smart money came in and the odds have swung considerably [embedded post] @lizardky.bsky.social : “A verbal contract isn't worth the paper it's printed on.” Lisa Marie Christmas Tree / @lisamarietea.bsky.social : *gasping laughter in contract lawyer* — *like the gif of Ray Liotta losing his shit levels of laughter* — Everything in this entire godforsaken country is a con if these are the people doing the big important business. [embedded post] Rone / @ennui.org : Time for all Musk lickspittles to join forces, buy their daddy's debt, and forgive it. [embedded post] @bananapantz.bsky.social : Ah yes, the infamous and credible, “No this time, I swear. You won't lose anything” Guarantee. It will get you $13bn at your local bank. [embedded post] Courtney Milan / @courtneymilan.bsky.social : And then they signed an agreement saying it was the complete agreement of the parties, I bet. — *nods sagely* [embedded post] Amy Hoy / @amyhoy.bsky.social : that's so weird! every time i, a consumer, have put money into a deal where the dealmaker told me “you can't lose money on this deal!” — it's worked out just perfect. — if you can't trust guys offering perfect deals, who CAN you trust? [embedded post] Matthew Giraldi / @mgiraldi.bsky.social : “The verbal guarantees were made by Musk to banks as a way to reassure the lenders as the value of the social media site” — Forgive me but I'm dying laughing at anyone that would trust a verbal guarantee from a dude that said he'd have people living on Mars by now (or ever). — Sucks to suck idiots. … @lareyne.bsky.social : Elon really is Trump's spiritual son [embedded post] Tom Munderwear / @tommunderwear.bsky.social : “Ivy Leaguers and Nepo hires in finance are the real smart people.” Taco Blacc / @psychoalpastor.bsky.social : If you're gullible enough to believe a guarantee that you will not lose money, then you deserve to lose money. — If you're that gullible and run a *bank*... you should not be running a bank! [embedded post] @newleaf.bsky.social : I love when I want a bank loan and I can just verbally guarantee that they can give it to me and not lose money. @tendehka.bsky.social : Oh sweet, the taxpayer is gonna bail them out for betting on Musk. Love our system. [embedded post] Brendel / @brendelbored.bsky.social : The people tasked with avoiding a complete financial crash in America believed in a promise from this man [embedded post] Braak / @braak.bsky.social : just to be clear I have never missed a mortgage payment in twenty years but no bank would accept my “verbal guarantee” if I asked for a loan to buy a new house. [embedded post] Brooke Binkowski / @brooklynmarie.bsky.social : Lol they deserve it [embedded post] X: Ed Zitron / @edzitron : I love it when my $13bn loan deal is “uninvestable” https://www.ft.com/... [image] Tom Coates / @tomcoates : Most importantly, at its height Twitter was making $5bn a year in total revenue, a number which has plummeted under Elon to considerably under half that. Instagram meanwhile... [Screenshot: Instagram Annual Ad Revenue (US) In 2022, Instagram earned an annual ad revenue of 33.25B in the US alone. Also, it is projected that Instagram will earn $39.7B by end of 2023] Forums: Ars OpenForum : Elon Musk told bankers they wouldn't lose any money on Twitter purchase
Context & Ripple Effects
The financing risk was visible before the acquisition closed: negotiations were reportedly stalled over debt-financing terms, following Musk’s public efforts to put the deal on hold and question its price. The reported bank losses turn that pre-close uncertainty into a creditor problem.
Post-takeover cost cutting reportedly included withholding or renegotiating vendor payments, underscoring the operating pressure behind the debt’s weak standing. A verbal assurance to lenders matters because it may shape how banks pursue support from the deal’s sponsor.
First-order effects
- Banks holding the Twitter acquisition debt face potential losses on an asset sources characterize as difficult to sell, while assessing the practical value of Musk’s reported verbal guarantee.
- Musk’s relationship with the financing banks is immediately at stake: the reported assurance creates an expectation of support even if its enforceability and terms are unclear.
Second-order effects
- Banks may have to carry the debt longer or accept discounts to distribute it, tying up balance-sheet capacity that could otherwise support new leveraged transactions.
- Future lenders to Musk-backed or similarly leveraged technology deals are likely to place greater weight on sponsor support and debt-market execution, rather than assuming a completed acquisition can be readily syndicated.
Third-order effects
- If highly leveraged tech acquisitions repeatedly leave banks unable to distribute loans, underwriting may shift toward tighter covenants, more equity, and clearer contractual backstops from sponsors.
- The episode points to a broader separation between headline acquisition valuations and the market’s willingness to finance the resulting debt—a discipline that becomes most visible after a deal closes.
The trend: This is one data point in the repricing of leveraged technology takeovers, where financing certainty increasingly depends on the sponsor’s credibility after closing.