Elon Musk: Twitter bankruptcy cannot be ruled out – Technology Org

Stockgeist
Stockgeist

On last Thursday, Twitter’s new owner and CEO Elon Musk mentioned the “theoretical” possibility of his recently purchased company going bankrupt.

Twitter logo on a window.  Image credit: Kevin Krejci via Flickr, CC BY 2.0

Twitter logo on a window. Image credit: Kevin Krejci via Flickr, CC BY 2.0

Musk said that he could not rule out bankruptcy during his first mass call with employees. This statement came out just two weeks after he purchased this social networking company for $44 billion.

Right after becoming the owner of Twitter, Musk put forward his first – and relatively strict – financial objectives. He that warned the current economic situation is difficult and that company must deal with it by raising revenue from subscriptions.

The situation became even more critical as Twitter’s advertising revenue sharply fell during those last two weeks.

A number of managing staff have already left the company, including Yoel Roth, who was responsible for coordinating Twitter’s policy regarding hate speech, misinformation and spam and implementation of related services to fight those issues. Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty also resigned.

Twitter already issued a statement that despite these departures, the privacy and security-related measures will remain solid.

During his meeting with Twitter employees last Thursday, Musk warned about the potential loss of billions of dollars next year.

Currently, Twitter’s debt amounts to $13 billion. Annual interest payments are close to $1.2 billion which exceeds the company’s income, which is approximately $1.1 billion according to financial data from nearly five months ago.


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