Elon Musk has told Twitter employees that the company is losing so much money that “bankruptcy is not out of the question,” according to a report by The Information.
According to the Twitter boss, the platform which hasn’t turned a profit since 2019, has seen a “massive drop” in revenue”.
During the meeting Musk suggested that the company’s future depended on the success of the $8 per month Twitter Blue subscription service, which is currently being bombarded by bots, scammers, and impersonators.
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“The reason we’re going hardcore on subscribers is to keep Twitter alive,” Musk said adding that “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.“
Summit News reports: Musk also announced that the company’s “work from anywhere” policy is now canceled, telling Platformer “If you can physically make it to an office and you don’t show up, resignation accepted.”
Banks balking at holding debt?
As Bloomberg notes, Wall Street banks that lent Musk $13 billion to fund Musk’s buyout have been quietly approaching hedge fundsto see if they would be interested in chunks of buyout debt at deeply discounted prices as low as 60 cents on the dollar – which would mark one of the deepest discounts in a decade.
The lukewarm investor reception shows just how big of an albatross the Twitter debt is becoming for a Morgan Stanley-led cohort that committed to finance Musk’s acquisition of the social-media firm back in April, before credit markets cratered. The seven banks are now saddled with risky loans that they never intended to keep on their books, and face an increasingly uphill battle to minimize losses. -Bloomberg
In particular, the banks want to unload their $6.5 billion leveraged loan portion of the financing, and if the loans are trading at 60 cents, that implies everything below the secured tranche in the cap structure is impaired (more or less a donut), and the EV on the company is around $8 billion.
Meanwhile, the Federal Trade Commission has sounded the alarm over an exodus of top employees from the social media giant – the latest of whom was the company’s head of moderation and safety, Yoel Roth, who – as a longstanding left-leaning executive, provided some level cover for Musk.
The government watchdog agency said that it was “tracking the developments at Twitter with deep concern,” and that it’s considering taking action to ensure that the company is complying with a ‘consent order’ which requires the company to comply with certain privacy and security requirements related to allegations of past data misuse.
Twitter was first put under a consent order in 2011, and it agreed to a new order earlier this year. If the FTC finds Twitter is not complying with that order, it could fine the company hundreds of millions of dollars, potentially damaging the company’s already precarious financial state. -WaPo
“No CEO or company is above the law, and companies must follow our consent decrees,” said FTC director of public affairs, Douglas Farrar. “Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them.”
According to the report, FTC staffers said they were most concerned about the rapid rollout of new features which have yet to undergo full security reviews governed by the FTC consent decree. The agency also objected to Musk requiring staff to work in the office at least 40 hours per week, effective Thursday.
former FTC officials warned that the departures of key privacy and security officials, as well as some of Musk’s proposed changes to Twitter products, opened the company to serious regulatory peril. -WaPo
Employees were not happy in the company’s slack channel following the all-hands meeting.
“What’s the motivation? Work hard or get fired?” asked one employee.
Niamh Harris
Yeah they ripped him and his consortium off Totally. Pos software with diddly squat full of fraud.
What will I ever do without twitter?!!!
Wow. I was just saying on Breitbart this would happen.
The WEF controls the media. And you know what they want. The collapse of the economy. All the rich elites are satanists that want the new world order and one global currency. THAT is why Musk bought twitter, hoping liberals would exodus the platform, advertisers would pull out and the company would go belly-up.
It’s why one box-office disaster another, Disney keeps doubling down on woke movies nobody wants to see. (If Disney actually wanted to make MONEY they wouldn’t keep producing these kind of movies they know bomb in the box office)
It’s why Biden killed the pipeline his first day in office. It’s why Biden keeps giving Ukraine billions. It’s why he extended the covid emergency plan to 2023.
It’s why Amazon invested billions in a woke Lord of the Rings nobody wanted to see.
They are satanists. They want the one, global currency. The only way to do that is to destroy the economy. I know it sounds crazy, but they actually WANT THEIR COMPANIES TO FAIL.
The central bank owners thru WEF have installed their controlled drones into the CEOs of all major corporations. they were told not to worry about profit or the balance sheet of the companies they govern, but to follow instructions given to them. Hire all gay people, even if they are totally incompetent. Fire the people that are moral and will hold their ground.
They are able to do this, because they own the printing press of the world currencies.
They can finance, fund anything they want, simply by printing currency unfettered.
“Give me the authority to print a nation’s currency, I care not what her laws are” Rothschild.
Biden is funding Ukraine because he is trying to hide his massive complicity in their criminal underworld, such as child sex trafficking, drug trafficking etc. as well as hiding his other crimes. Hush money speaks loudly.
Elon Musk In Bed With War Machine & CIA . . . https : // www . youtube . com/watch?v=8w14RzNErdE
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Fake Ukraine supporting Elon has already agreed to continue censoring for the scumbag ADL and parasite putrid P0S israel. Why give them billions for putrid Twitter?
Eli Muskovich has to get permission from the ADL first.
Whatever they touch they destroy, or use to destroy.
Everything they own becomes evil and satanic.
Their Gods are the destroyers, the fallen angels, now demons from Hell.
Our God is the creator.
They are devolving lower, we with souls are evolving higher.
That is why they hate us. Their only power is to destroy life.
Their energy is 100% life-killing energy only.
They are anti-gentiles.
Even the gentiles they turned into Freemasons, will all be culled from that satanic cult, they call ‘The Order”.
The one they want to become the New “WORLD” Order.
As they grow in power, everything on this earth will DIE.
Watch and see.