Morgan Stanley Reports $356 Million Writedown, Which Includes Its $3.4 Billion Loan Lent to Twitter
Per Bloomberg
Morgan Stanley has exposure to Twitter debt worth $3.4 billion as part of Elon Musk's acquisition deal. Including the debt by the social platform, the bank is reporting a "$356 million writedown on corporate loans on its balance sheet."
When asked about Twitter, Morgan Stanley CEO James Gorman decided not to give a straight answer. He did not divulge any specifics regarding how their investment is doing or how it has affected their business.
Gorman: “The way I think about this is we run a portfolio business. We obviously have single credits at any point in time that disappoint relative to others, but it’s the total package,”
The CEO then followed up this statement by saying if people look at the total package, it could actually seem fine. Gorman said that this was because of the environment that the market is in.
While it took a lot of financing for Elon Musk's Twitter deal to push through, the social platform recently reported a drop in revenue of 40% year-over-year. Since the acquisition, Musk has been busy not just trying to grow Twitter but also trying to minimize expenses.
So far, Musk is still looking for other alternative revenue streams for Twitter, including a feature that could help creators monetize their content on the platform. The teased feature is called Coins, allowing users to pay creators.
Twitter Coins is a feature spotted by two app researchers that would provide users with a way to tip artists. Aside from Coins, the social platform is also toying with potentially selling user names, just as you would domains.
While new monetization features are still being considered, Musk has confirmed upcoming non-monetization features on Twitter. These include increasing the word count to 4,000, as highlighted in an article by Fox Business, and allowing users to bold, underline, italicize, and adjust the text's font size.
See flow at unusualwhales.com/flow.
Other News:
- Twitter's revenue is down 40% year-over-year
- Twitter is Working on 'Coins' Feature, A Potential Way to Support Creators
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