Context: "Put it all together, and X isn’t just worth less than Musk paid for it, but likely less than its debt. Assume that the company’s revenue last year was $4.7 billion, based on results before it was taken private. If advertising has dropped by half, then this year’s sales should be a bit over $2.5 billion. Put that on the same enterprise-value-to-sales multiple as Snap, which is down to a mere 3 times, and X is worth around $8 billion.

"The company is so far covering its hefty interest payments of $300 million per quarter, and Yaccarino sees profitable days ahead. But between Musk’s impromptu product shifts and the need to woo back advertisers, her task is daunting. If things deteriorate further, the company’s bankers - already nursing billions in on-paper losses - face the prospect of taking back the keys to a diminished platform that is worth less than even their claim on it."

RESOLUTION: This question will resolve to YES if X / Twitter creditors repossess the company from shareholders before January 1, 2025.  This question will resolve to NO if X / Twitter creditors DO NOT repossess the company from shareholders before January 1, 2025.

DISCLAIMER: There are other possible outcomes, including Musk purchasing outstanding debt from creditors, creditors accepting a write down / cancellation of portions of the outstanding debt, or creditors just maintaining their X debt holdings or selling the debt to others. I may choose to bet on the outcome in this market but will certainly resolve this market fairly.

https://www.reuters.com/breakingviews/elon-musks-x-is-black-hole-value-2023-10-03/

Breakingviews - Elon Musk’s X is a black hole of value

X is still worth something, but not for the people running it. Boss Linda Yaccarino is set to present her plans for the social network formerly known as Twitter to bankers holding nearly $13 billion of its debt, the Financial Times reported. Looming over talks is the likelihood that X’s value is substantially less than even that figure.