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

Billionaire Elon Musk’s difficulties have not been decreasing since purchasing the microblogging site Twitter. Musk took a heavy debt for the Twitter deal and his team is now planning to raise up to three billion dollars to repay some part of it. Musk took a loan of about 13 billion dollars for this deal.

Wall Boulevard Magazine said in a report quoted by people who are aware of the case that the representatives of Musk had discussed the sale of new Twitter shares up to $ 3 billion last month. Twitter has not answered the questions sent by Reuters about this. When asked by Musk when this report was correct, he called it wrong in a tweet. If the Musk’s team gets success in raising money through equity, then it can be repaid on the debt which has higher interest rate.

Data from an advertising research firm suggests that the expenditure on advertising on Twitter in December has reduced by 71 percent. Since the takeover of Twitter, big companies have reduced advertisements on this social media platforms. Twitter revenue has decreased and Musk is taking measures to reduce the company’s expenses. He had trimmed about half of the company’s staff after acquiring the control of Twitter. Recently, Twitter asked Asia Pacific’s staff to vacate the building in Singapore in Singapore.

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