11:23
-7 C°
Traffic jam:   5
$
60.7520
63.3008

Elon Musk warns that Twitter may go bankrupt from loss of profits

11 November 2022
2291
2 min.
8
Elon Musk warns that Twitter may go bankrupt from loss of profits

Musk's assumptions about the bankruptcy of Twitter

Entrepreneur Elon Musk said in his first address to Twitter employees that the company could go bankrupt if it does not bring in more money. This was reported by Bloomberg news agency on Thursday, citing sources.

According to the agency, Musk, who recently became the owner of Twitter, issued several stern warnings to employees of the company. In particular, employees need to prepare for an 80-hour work week and reduced office privileges like free food. The businessman has also banned employees from working from home.

Speaking about the future of Twitter and the company's finances, Musk said it urgently needs to make Twitter Blue an $8 product that people will want to pay for, given advertisers' refusal to partner with the enterprise. That said, according to a Bloomberg interlocutor familiar with Musk's management style, the billionaire has used the threat of financial ruin in the past in an attempt to motivate employees.

Also, a separate lawyer for the company warned in the company's Slack channel that Musk is taking a cavalier attitude towards privacy rules and that the company potentially risks significant fines from the FTC, according to a report by The Verge, which was confirmed by the person who reviewed the post.

In addition to regulatory challenges, Musk, the self-proclaimed "absolutist of free speech", faces an uphill battle to revive his already struggling Twitter business.

Already on Friday, he warned of a "massive drop in revenue" as major brands such as General Motors, Mondelez and Carlsberg suspended spending on the platform over concerns over his plans to loosen content moderation.

He also faces annual interest payments of $1 billion after loading the company with $13 billion in debt to help fund his acquisition of the business.

On October 27, Musk closed a $44 billion deal to buy Twitter, the company that owns the social network of the same name. According to documents posted by the US Securities and Exchange Commission on 31 October, the entrepreneur is going to dissolve the company's board of directors. Musk fired several members of the board immediately after purchasing Twitter. Later, Bloomberg reported that the businessman plans to cut his staff by almost half.

Persons1 and Companies7 in the news

Section:
Source foto:
csmapnyu.org

Discussion

Rating companies
Nasdaq
151 Mention
Dow Jones
118 Mention
Twitter
39 Mention
Apple
38 Mention
Tesla
34 Mention
Bloomberg L.P.
29 Mention
JPMorgan Chase
23 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
7997367973
Died this year
54100219
Born this year
133096114