CAM Posted November 14, 2014 Posted November 14, 2014 How does a business even function on a £1.1 billion debt? BBC News - Twitter's debt assigned 'junk' status I know they have had cash flow problems from the start but I didn't expect it to get this bad.
Bradlys Posted November 14, 2014 Posted November 14, 2014 So who's gonna buy them for the userbase. Me I guess if they're in debt they'll take £2.50?
Dos_Box Posted November 14, 2014 Posted November 14, 2014 How does a business even function on a £1.1 billion debt? BBC News - Twitter's debt assigned 'junk' status I know they have had cash flow problems from the start but I didn't expect it to get this bad. Has that info been tweeted yet?
Garacesh Posted November 14, 2014 Posted November 14, 2014 Me I guess if they're in debt they'll take £2.50? Maybe they would, but you'd have to take on the 1.1bn debt, too Not suddenly such a bargain anymore, hm?
localzuk Posted November 14, 2014 Posted November 14, 2014 (edited) Companies like S&P are a pretty poor guide as to how good a company is. They had Lehman Brothers rated as AAA+ or whatever the top rating was until 4 days before they crashed and shut down. The thing with Twitter is that they have been investing all their money back into the business, rather than paying out. If you are in it for the long-haul, then Twitter probably isn't a bad investment, but most investment firms are only interested in short term returns. So, I rate the BB- rating as junk itself. Keep calm and carry on tweeting. Not to mention, operating at £1.1bn in debt is nothing for a big company. Look at the debt for any big company and you'll find they all have huge debts. The issue is, are they earning enough to service those debts? If yes, then all is fine. Think of it this way, the UK is over a trillion quid in debt. Yet we're kinda fine. We can service that debt whilst keeping the country running. (Don't buy into the austerity nonsense, its all a big shell game). Edited November 14, 2014 by localzuk
SteveBentley Posted November 14, 2014 Posted November 14, 2014 It's hard to see where Twitter's revenue comes from - a few quid for promoted tweets here and there is about it, unless I'm missing something.
localzuk Posted November 14, 2014 Posted November 14, 2014 It made $361m in revenue in the 3rd quarter. So, those few quid add up...
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