Elon Musk trying to raise $3 billion to reduce Twitter’s debt

Billionaire Elon Musk’s troubles are not decreasing after purchasing microblogging site Twitter. Musk had taken a huge loan for the Twitter deal and his team is now planning to raise up to three billion dollars to repay some part of it. Musk had taken a loan of about 13 billion dollars for this deal.

The Wall Street Journal quoted people with knowledge of the matter as saying: Report reported that Musk’s representatives had discussed the sale of up to $3 billion of new Twitter shares last month. Twitter has not responded to questions sent by Reuters in this regard. When Musk was asked if this report was true, he called it false in a tweet. If Musk’s team is successful in raising funds through equity, then that part of the loan on which the interest rate is higher can be repaid.

Data from an advertising research firm shows that advertising spend on Twitter declined by 71 percent in December. Since Musk’s takeover of Twitter, big companies have reduced advertisements on this social media platform. Twitter’s revenue has declined and Musk is taking measures to reduce the company’s expenses. After gaining control of Twitter, he laid off almost half of the company’s staff. Recently, Twitter had asked the staff of its headquarters in Singapore in Asia Pacific to vacate the building.

Last month, Twitter was taken to court for not paying rent for its headquarters building in San Francisco, USA. Twitter owes $1,36,250 in rent. Columbia Reit, the owner of this office, had said that it had given notice to Twitter on December 16 that if the rent was not paid, it would default on its lease. In the complaint filed in the court, Columbia Reit had claimed that Twitter had not followed the terms of the agreement. Apart from this, Twitter was also sued for refusing to pay for two charter flights.