A judge just evicted the company from its Boulder, Colorado office after three months of unpaid rent, totaling over $75,000, as originally reported by TechCrunch.
“Twitter continues to chug along, maybe with outages here and there, not losing much traction. Maybe it ekes out a small profit, which Musk can use to salve his ego.”
Twitter’s big problem on this front is the massive amount of debt that Musk saddled it with in order to purchase it, which the company now has to make quarterly payments on. Twitter was very close to turning a profit pre-buyout, but thanks to Elon it now has to pay ~$1.5 billion dollars in debt service annually at the same time that it chased away something like half of all its advertising income. That’s why he’s laying off all his employees and skipping out on the company’s bills.
That’s very true. That’s why Musk was talking up his plans to turn Twitter into some kind of super-profitable super-app (a la WeChat)… but that’s definitely not materializing, because how many people would trust Musk’s Twitter enough to use it as a super-app?
I think Twitter will have to end up defaulting on those loans. The banks will be pissed off, but they’ll have to work out some kind of face-saving deal with Musk to write off the loans, because at that point only a masochist would want to run/own the company. But who knows.
“Twitter continues to chug along, maybe with outages here and there, not losing much traction. Maybe it ekes out a small profit, which Musk can use to salve his ego.”
Twitter’s big problem on this front is the massive amount of debt that Musk saddled it with in order to purchase it, which the company now has to make quarterly payments on. Twitter was very close to turning a profit pre-buyout, but thanks to Elon it now has to pay ~$1.5 billion dollars in debt service annually at the same time that it chased away something like half of all its advertising income. That’s why he’s laying off all his employees and skipping out on the company’s bills.
That’s very true. That’s why Musk was talking up his plans to turn Twitter into some kind of super-profitable super-app (a la WeChat)… but that’s definitely not materializing, because how many people would trust Musk’s Twitter enough to use it as a super-app?
I think Twitter will have to end up defaulting on those loans. The banks will be pissed off, but they’ll have to work out some kind of face-saving deal with Musk to write off the loans, because at that point only a masochist would want to run/own the company. But who knows.