Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Musk orders Twitter to cut infrastructure costs by $1B – sources

reuters.com

Post reply on HN
Print view View original

161–164 of 164 posts

Re: Musk orders Twitter to cut infrastructure costs by $1B – sources

#161

Post by fakedang »

credit_guy wrote: post #160
trowawee wrote: post #156

Earlier quoted context omitted.

You go to a bank and tell it "I would like to buy this company. It has assets worth $N, which could be put up as collateral for a loan of $(.60 x N)." The bank says "Yes, those assets are worth that much. We will sign a contract with you where we will give you $(.60 x N) and in return, once you successfully purchase the company and it is your property, those assets will act as collateral for that loan." You take the…

So let me recap: you (Musk) get a loan ($12.7 BN) from banks, with the idea that the company you buy will be used as a collateral. Before the sale is closed, you can't put it on the company's balance sheet, because you don't own it. But after that you can. Wait a second. It's true that Musk now owns the company, but transactions between the company and its (sole) owner are still at arm's length, arent's they? As a pu…

Please read up on the concept of Leveraged Buyouts (LBOs), which were a thing since the 70s and 80s. Private equity LBOs have been a thing precisely because of credit available from banks. Last I checked, PE firms such as KKR are still prosperous, in spite of conducting an LBO of similar scale (RJR Nabisco), after saddling the company with extremely high amounts of debt (for the 80s).

And please don't drive the discussion to tangents and anecdata, even though your analogy is flawed.

Re: Musk orders Twitter to cut infrastructure costs by $1B – sources

#162

Post by nemo »

fsdjkflsjfsoij wrote: post #9
moistly wrote: post #7

I suppose if everyone is fleeing the service, less infrastructure is required.

That most likely won't happen though. In a month most people won't be talking about this and Twitter will be running fine.

Care to revisit this one in a month?

Re: Musk orders Twitter to cut infrastructure costs by $1B – sources

#163

Post by nemo »

rlt wrote: post #70
nemo wrote: post #32

Earlier quoted context omitted.

This one looks meaningfully different. I won't be logging on in a month since I've already deleted my account (had it since 2010).

And you think you are representative of the average Twitter user, why?

lol

Re: Musk orders Twitter to cut infrastructure costs by $1B – sources

#164

Post by veqq »

tluyben2 wrote: post #102
partiallypro wrote: post #49

Earlier quoted context omitted.

I had a friend that worked for a massive company in the Valley which I'll leave unnamed, that told me about them just leaving servers running hot with no throughput for months at a time. So, I guess it's possible. I doubt his estimate was pulled out of a hat (but I could be wrong, or the article could just be pulling that out of a hat/using an unreliable source.) I've taken over AWS and Azure accounts before that wer…

Yep, same here; as a (well paid) hobby, I help smaller companies lower their software bills. When they use 'cloud hosting' instead of a vps or something, that's usually the first point where I can cut 80%+. It is crazy how many things are running there that are not used or needed in almost every company I see. Usually there are software issues (most commonly, no, not enough or plainly wrong db indexes being the #1 to…

How do you find clients for this hobby? What sort of message or phrasing do you use?
Post reply on HN