They began spending tons of money because they wanted to improve the business. But before the mindless spending on computers, IT systems, and unbridled hiring here and there, no one has articulated the company’s strategic objectives. In other words, no one has put forward the real goals which must be accomplished within the enterprise.

In this video, this man wants to attain an optimal equilibrium on his seasoning and the “soup”. But while he had the understanding that he needed a feedback mechanism to see how a change in input investment (the seasoning) could affect the output of the soup (product), he did not design a decent process.

Because his process is broken (no alignment to measure inputs and outcome since he is not picking new soup for every new addition of seasoning), he is wasting the seasoning (raw materials), human capital (busy doing nothing) and in the end will deliver a broken product to the market [if a restaurant, clients will stop coming]. His process is poor, and no amount of effort will improve the quality of the product, and that means the company will fade over time.

What does this tell us? In markets, we need to have clear business objectives, and once those have been established, we have to find ways to MEASURE whatever we have set as objectives. Business is about organizing people, processes and tools to deploy factors of production to fix frictions in markets, and doing that requires building products which are then deployed to overcome the needs.  If we cannot design a good system to link our investments (the seasoning) and the quality of the product (the soul), the business will underperform.

Banks led by Morgan Stanley have offloaded another major chunk of the $13 billion debt that financed Elon Musk’s controversial $44 billion acquisition of Twitter (now X) in 2022, Reuters has reported, citing sources.

The latest sale, completed on Thursday, involved $4.74 billion in secured loans that will mature in October 2029, marking a near-complete exit for banks that had been forced to hold onto the debt for nearly two years—a highly unusual situation in corporate financing.

With this sale, banks including Bank of America, Barclays, Mitsubishi UFJ, BNP Paribas, Mizuho, and Société Générale have now successfully offloaded almost all of the debt, leaving only $1.3 billion in unsecured loans on their books. The timing of that final sale remains uncertain, according to the sources.

The latest batch of loans was priced at par (100 cents to the dollar) and paid a fixed yield of 9.5%, reflecting strong demand from institutional investors. Initially, banks had planned to sell $2.97 billion in secured loans, but the overwhelming interest led them to increase the offering to $4.74 billion.

This sale follows a $5.5 billion term loan sale in early February, which came after a $1 billion private sale of the same loans. The February deal was priced with a floating interest rate, at 97 cents to the dollar, yielding 11%. The fact that those loans were later bid higher by investors appears to have paved the way for the latest round of sales.

Unlike previous tranches, the latest loan sale involved fixed-rate debt, making it a rare transaction in leveraged financing. According to the International Financing Review (IFR), this was the largest-ever fixed-rate loan sale in the leveraged loan market.

Why Investors Are Now Betting on X

Banks typically sell such debt shortly after financing a deal, but the Twitter/X loans had become a major liability, forcing lenders to hold onto them far longer than usual. The reasons behind this delay were tied to X’s financial struggles, including a mass exodus of advertisers, ongoing losses, and Musk’s chaotic leadership. These factors made X’s future revenue potential uncertain and discouraged investors from purchasing the debt at favorable terms.

However, two key factors have shifted investor sentiment and made X a more attractive bet.

One major factor is Donald Trump’s election victory in November. Musk, who has positioned himself as a close ally of the former president, is seen as someone who could benefit from a Trump presidency. Investors are anticipating that Trump’s return to the White House will open the door for more conservative advertisers, potentially reversing the revenue losses X suffered when major brands pulled their ads due to content moderation concerns. This political dynamic is giving investors confidence that X’s financial outlook could improve under a new administration.

Another key selling point for investors is the exposure to Musk’s artificial intelligence startup, xAI. While X itself remains a struggling social media platform, Musk has increasingly linked it to his broader AI ambitions. Investors see xAI as a promising venture that could give X a strategic edge in the artificial intelligence space. By purchasing the debt, investors are also gaining indirect exposure to xAI’s growth potential, making the investment more appealing.

The Last Remaining Challenge: The $1.3 Billion in Unsecured Debt

Despite the successful sale of most of the debt, $1.3 billion in unsecured loans remains on bank balance sheets. These loans carry higher risk and lower priority for repayment, making them a much harder sell to investors. Sources say the banks have yet to determine the best timing or strategy for selling off the remaining portion of the debt.

The prolonged struggle to offload X’s debt has been one of the most challenging financing deals in recent history. Musk’s leveraged buyout of Twitter was one of the most expensive in history, and the financing structure turned into a historic headache for banks when X’s revenue declined sharply.

Now, with a political shift in the U.S. and Musk’s broader technology ambitions, institutional investors appear more willing to take a chance on X’s uncertain future. The latest sales have given banks a long-awaited opportunity to free themselves from a financial burden that had lingered far longer than expected.

Billionaire philanthropist Bill Gates has raised concerns over Elon Musk’s growing political influence across multiple countries, calling it “insane” that the Tesla and SpaceX CEO has the power to destabilize political situations globally.

In an interview with The Times UK, Gates criticized Musk’s recent interventions in British and German politics, arguing that super-rich foreigners should not be able to manipulate elections.

“It’s really insane that he can destabilize the political situations in countries,” Gates said.

Musk has made waves in British politics by publicly calling for the removal of UK Prime Minister Keir Starmer. The billionaire accused Starmer of failing to prevent the rape of young girls when he served as Britain’s chief prosecutor from 2008 to 2013, a claim that sparked outrage and was dismissed as misleading and inflammatory by political analysts.

In Germany, Musk has thrown his support behind the far-right party Alternative for Germany (AfD). On Saturday, he spoke virtually at an AfD campaign rally, backing their platform ahead of the country’s February national elections.

In December, Musk penned an op-ed in Welt am Sonntag, a major German newspaper, praising AfD as “the last spark of hope for this country” and endorsing their hardline stance on immigration—a key issue in Germany’s political landscape.

South America Too

But Musk’s political footprint is not limited to Europe—he has increasingly been shaping political discourse in South America as well, siding with right-wing governments and challenging leftist leaders.

In Brazil, Musk has clashed with leftist President Luiz Inácio Lula da Silva, accusing him of censorship and authoritarianism.

Lula’s government has been investigating fake news and disinformation spread on social media, prompting Musk to accuse him of trying to silence political opponents.

In April 2024, Musk publicly defied Brazil’s Supreme Court, refusing to comply with a ruling that ordered the removal of accounts accused of spreading misinformation and extremist content. Musk took to X, calling the court’s actions a violation of free speech, and openly stated that he would not obey the orders.

Musk’s defiance fueled tensions between Brazil’s judiciary and his company, with Justice Alexandre de Moraes slamming a ban and fine on X.

Musk has also emerged as a strong supporter of Argentina’s new right-wing president, Javier Milei, who was elected in 2023.

Milei, a self-proclaimed libertarian and staunch opponent of socialism, has drawn comparisons to U.S. President Donald Trump. He pledged to dismantle Argentina’s welfare state, slash government spending, and implement radical free-market reforms—an agenda that aligns with Musk’s views on government intervention.

Shortly after Milei’s election, Musk praised him on X, calling his victory “a big win for the people of Argentina”. Musk also met with Milei’s team, reportedly discussing economic policies and the potential for Tesla to expand operations in Argentina, a country rich in lithium reserves—a critical component for Tesla’s electric vehicle batteries.

Musk’s endorsement of Milei has been seen as part of his broader support for right-wing populist movements worldwide, particularly those who advocate for deregulation, free markets, and a hard stance against leftist governance.

Gates Calls for Stricter Safeguards Against Foreign Billionaire Influence

Against this backdrop, Gates told The Times that Musk’s growing political involvement is deeply concerning, urging governments to adopt stronger safeguards against foreign billionaires influencing elections.

“I think in the US, foreigners aren’t allowed to give money,” Gates said. “Other countries maybe should adopt safeguards to make sure super-rich foreigners aren’t distorting their elections.”

Musk’s political maneuvering has drawn comparisons to media moguls like Rupert Murdoch, who have used their influence to shape political outcomes globally.

Musk’s increasing engagement in global politics has been amplified by his growing alliance with Trump.

After Trump’s re-election victory in November, Musk became an informal adviser, participating in calls with world leaders, including Turkish President Tayyip Erdogan. He has also been appointed to lead Trump’s new Department of Government Efficiency (DOGE), a commission designed to slash government spending and eliminate regulations.

Musk was a major financial backer of Trump’s campaign, reportedly spending at least $277 million supporting Trump and other Republican candidates in 2024. His financial and ideological alignment with right-wing populist movements across different countries suggests a coordinated effort to shift global politics toward deregulation, nationalism, and limited government oversight.

Musk Remains Unapologetic as Global Political Tensions Rise

While Bill Gates has expressed alarm at Musk’s growing political influence, Musk has shown no signs of backing down.

From challenging left-wing leaders in South America to endorsing right-wing movements in Europe and the United States, Musk has positioned himself as a political disruptor—leveraging his vast wealth, social media platform, and influence over emerging industries to reshape global politics.

His critics argue that his interventions are reckless and self-serving, designed to protect his business interests while advancing a political ideology that benefits billionaires and corporate elites.

“I thought the rules of the game were you picked a finite number of things to spout about that you cared for, focused on a few critical things, rather than telling people who they should vote for,” Gates said.

“If someone is super smart, and he is, they should think how they can help out. But this is populist stirring,” Gates added.

Supporters, however, see him as a champion of free speech and deregulation, unafraid to challenge the status quo.