How Elon Musk’s Twitter Faces Mountain of Debt, Falling Revenue and Surging Costs

I am quoted in the Wall Street Journal:

The company could also replace some of the debt with equity, both from Mr. Musk and from outside investors, said David Kass, a finance professor at the University of Maryland’s Robert H. Smith School of Business. For that, Mr. Musk would need to persuade potential investors that he has a viable long-term business plan, he said. Replacing debt could enable the company to generate cash. Mr. Musk has said some of his latest Tesla Inc. stock sale, yielding almost $4 billion in cash, was because of Twitter. 

If successful, the company could generate positive free cash flow in two or three years, which it could use to pay down the residual debt and eventually go public again, Mr. Kass said. “The prospect of an eventual IPO within three to five years would be a very attractive enticement for large funds,” he said.