Statement from zuMedia Inc.
NEW YORK, Nov. 13, 2023 /PRNewswire/ -- Some of the biggest names in investment banking are facing billions in losses from loans that helped Elon Musk finance his takeover of Twitter one year ago. Since Musk's purchase and renaming to X, asset managers have slashed X's value from $44 billion to a fraction of that amount, following a sharp worldwide decline of active users, steep losses in advertising revenue, and claims by Musk himself that X is near bankruptcy. According to news reports, the company recently valued itself at $19 billion.
The best outlook for Barclay's, Bank of America and Morgan Stanley is to sell their debt in the company at a small loss. But given the likelihood of a poor credit rating for X – Twitter's credit was rated junk before the Musk buyout and the accumulation of greater debt – it is more likely that the banks will be forced to sell the debt at steeper losses.
With a full calendar year passing since the initial debt was issued to Musk, pressure on the banks to unload that debt only grows. The banks should have been able to sell the debt by now. When investment banks hold low-value debt for so long, it draws attention from regulators. Holding low-value debt on the books limits the other business options for the investment banks.
However, options exist: Investors who realize the value of what X could be, again, under different management. If the investment banks want to clean their books of the X debt, there are those who would offer a fair and reasonable price. Options are only a phone call away. Based on a recent revenue analysis conducted by a reliable and seasoned CFA, Backskin.com and zuMedia Inc. are reported to be in a strong financial position and can pursue acquisition of a partial or whole interest in X/Twitter.
zuMedia Inc., is a pioneering technology and digital media company that works across a spectrum of industries on solutions to deliver strong commercial value. zuMedia innovations include BackSkin, a new online advertising tool, and DMDb.com, an emerging social media platform. The systems and processes underlying BackSkin are the subject of patent applications filed with the U.S. Patent and Trademark Office. zuMedia is the parent company of both BackSkin Inc. and DMDb Inc.
SOURCE zuMedia, Inc.
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