Elon Musk warns of a probable Twitter bankruptcy if cash burn persists
- ByStartupStory | November 11, 2022
According to individuals familiar with the situation, Elon Musk indicated that bankruptcy might be a possibility for Twitter Inc. if it doesn’t start producing more cash in his first address to the company’s employees since purchasing it for $44 billion. The warning came amid a volatile beginning to Musk’s leadership at the social networking company, which spanned a two-week period in which he fired half of Twitter‘s staff, ousted the majority of the company’s top executives, and ordered the remaining staff to stop working from home.
Yoel Roth, one of the top managers who had emerged as a member of Musk’s new leadership team up until Thursday, left, according to people with knowledge of the matter. Another person, Robin Wheeler, resigned as well, but Musk persuaded her to stay, according to some of the people who requested to remain anonymous in order to preserve their professional and personal lives. According to one estimate, Twitter’s curiosity prices will rise to $1.2 billion annually as a result of the debt it took on to finance Musk’s takeover. Some advertisers who are apprehensive about Musk’s proposals for content filtering have pulled back from the social community.
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