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Musk’s Twitter Buyout Gambit Is Getting Costlier by the Day

  • Annual interest will hit nearly $1.2 billion if deal happens
  • Half of the $13 billion debt from Musk LBO is floating rate
Bloomberg business news
Markets See 60% Chance of Twitter Deal Making Deadline

If Elon Musk really does go through with his acquisition of Twitter Inc., the social media giant will face an annual interest burden of nearly $1.2 billion on its debt - a problem that’s only going to get worse as rates continue to rise.

Roughly half of the $13 billion debt Musk is loading on Twitter is floating rate, meaning interest costs will increase as the Federal Reserve continues to raise rates. The Fed is expected to hike rates again next month, possibly by as much as 75 basis points in a fight to tame inflation.