The CEO of Morgan Stanley is not giving up on Elon Musk’s decision to layoffs.
After the recent purchase of Twitter by billionaire Elon Musk, the IT sector has observed huge turbulence with mass firings, experimenting with paid memberships, and high-profile users leaving the platform. The only person who supports such actions of Elon Musk is the CEO of Morgan Stanley.
“I wouldn’t bet against Elon Musk,“ James Gorman said Thursday at a Reuters conference in New York, calling Twitter “a great company” and Musk “an extraordinary executive,” and speaking up about a visit he completed to a Tesla Inc. auto plant in the Los Angeles area.
Banks led by Morgan Stanley provided $13 billion in debt to Musk to help him buy Twitter and are now facing the challenge of showing that debt to investors. The biggest buyers of leveraged loans have been burdened by debt from tech companies, and Musk’s unusual approach to managing Twitter has made it difficult for investors to value the company going forward. future.
Banks jumped at the opportunity to help a major customer now facing hundreds of millions of dollars in losses on unsold debt on their balance sheets.
“Institutions like ours are not stupid. We don’t get behind that kind of business and that kind of opportunity unless it’s real and it’s very real,” Gorman said. He said Musk was one of the most interesting entrepreneurs of the past 50 years, along with Steve Jobs and Bill Gates. “Who would not want to do business with a person who has that kind of capability? Shame on an institution who’d walk away from that.”
