musk twitter

Last year, Elon Musk acquired Twitter and took the company private. It’s been over two months since then but the social media company looks into a deeper mess than it was before Musk bought it for $44 billion.

Among the first things Musk did after acquiring Twitter was to unceremoniously fire the company’s top brass including CEO Parag Agrawal who was reportedly escorted out of the campus.

The mercurial Musk then fired almost half of Twitter staff. The company also fired many contractors unannounced. Musk’s Twitter antics have been painful for Tesla investors also and with a loss of 65%, it was among the bottom five S&P 500 losers in 2022.

From over $1.2 trillion, Tesla’s market cap has fallen below $400 billion. Musk too lost his position as the world’s richest person and became the first person ever to lose $200 billion in net worth.

Some of the Tesla stock bulls like Adam Jonas of Morgan Stanley and Cathie Wood of ARK Invest meanwhile remain positive on the stock. Wood also bought more Tesla shares amid the crash. There is a guide on how to buy Tesla stock.

Meanwhile, Musk offered to step down as the Twitter CEO once he finds someone “foolish enough” to lead the company. However, he emphasized that he would continue to head the technology team.

Twitter Sued for Missing Rent Payments

Columbia Reit-650 California LLC, which is the landlord for one of the Twitter offices in San Francisco has sued the company for not paying $136,260 in due rent. The New York Times reported that Twitter has not paid rent for several offices. The company is even contemplating not paying severance pay to the fired employees.

It has also auctioned several items in what looks like an attempt to raise cash. Reportedly, several Twitter employees carried their own toilet papers to the office after the company fired janitors.

Previously, Musk said that Twitter is losing $4 million every day. He also said that the company might go bankrupt. Notably, after Musk’s acquisition, which was partially financed with debt, Twitter’s annual interest expense has increased to around $1 billion.

Shortly after Musk took over Twitter, he complained that many advertisers have pulled back ad spending on the platform. The platform also faced an outage recently adding to the long list of troubles. Even the initial rollout of the paid verification badge faced glitches.

The paid subscription would be crucial for the company as Musk wants to lower the reliance on ad revenues.

Musk’s Antics Have Spooked Investors

Musk’s Twitter antics have spooked investors. He has taken several decisions in haste like suspending the accounts of some journalists, only to restore them shortly. Musk has made several U-turns over the last couple of years, including on cryptocurrencies.

In 2021, Tesla started accepting bitcoins as payment for cars and also invested money in them.

Soon enough, the company stopped accepting them as payment as Musk doubted their green credentials. Last year, the company sold most of its bitcoins while Musk said last year that it won’t sell them.

Even on Dogecoin, he has changed his stance and the self-proclaimed dogefather called it a “hustle” at one point in time. He also did not accept dogecoin as payment for Tesla calls despite a Twitter poll where the majority voted in favor. Dogecoin has seen some traction though since Musk acquired Twitter. You can also buy dogecoin with PayPal.

Jack Dorsey Offered His Views on How to Fix Twitter

Jack Dorsey, who initially supported Musk’s bid to turn around Twitter also does not seem too pleased with the way Musk has steered the company.

Dorsey offered his views on how to “fix” Twitter. He listed three solutions based on his experience and past actions. Firstly, Dorsey said, “Social media must be resilient to corporate and government control.” Secondly, he said that only the original author should be able to remove any post. Finally, he said, “Moderation is best implemented by algorithmic choice.”

Dorsey continued to stay as a Twitter investor even after Musk took it private. Meanwhile, Fidelity, another Twitter shareholder, has marked down the valuation of the microblogging site by around 56%.

Overall, Twitter now seems in a bigger mess than it was before Musk took over. From advertisers pulling back to non-payment of dues, troubles have only increased for the social media company since Musk acquired it and took it private.

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