WASHINGTON: It is unclear to what extent Musk’s close connection in the new US administration could help revive X’s business.
One of the sources said it could also further divide its user base. Newer platforms like Bluesky and Meta’s Threads have been benefiting from a user exodus from X since the election.
US web traffic on X reached its highest point this year on election day with 42.3 million visits, which climbed another 10pc to 46.5 million visits the day after the election, according to data from web analytics company Similarweb. But by the weekend, X’s web traffic tapered off to more normal levels, Similarweb said.
The data firm said 115,000 web users in the US deactivated their X account on Nov 6, higher than any other day since Musk took over the platform.
The social media company is expected to report its latest finances to the lending consortium in the weeks after the quarter ends next month, the sources said. The banks could then decide whether they should continue holding onto the debt or look to engage investors on it, the sources said.
Other banks in the consortium include Barclays, Mitsubishi UFJ, BNP Paribas, Mizuho and Societe Generale. BNP, SocGen, and Barclays declined to comment. The other banks did not immediately respond to a request for comment.
Sources have said banks have marked down the value of the debt to different degrees on their books, depending on their outlook on it. One of the lenders is marking potential losses on the loan weekly, and had already set aside reserves to fully cover them, according to a source familiar with the situation.
Published in Dawn, November 17th, 2024
