Follow the money.

Twitter borrowed $13 billion as part of the $44 billion purchase price.

Annual interest payments are estimated at $1.2 billion. That is more money than Twitter earned in 2021.

When Federal Reserve raises interest rates, the yield on the loans rises.

Guess what the Fed did this week? Raised interest rates.

Twitter is in serious trouble, and I won't be surprised when they go bankrupt.

@RedTRaccoon I don't understand how it was even an option to saddle the company he was buying with debt on the purchase. That's backwards af.

@MayWeAllRise @RedTRaccoon

That's called a leveraged buyout. You can do it if a bank is willing to take the risk and lend the money. In this case, the deal was bad for the banks, which are already underwater on the loans, and good for Musk, who gets to shift $13 billion of his losses to the banks if Twitter goes bankrupt.

As a business decision, it was terrible, because the rising interest rate means that Twitter is saddled with debt payments far in excess of its earnings.