Bloomberg News reports that the ‘Chief Twit’, while addressing Twitter Inc. employees for the first time since he became the owner of the microblogging site, said that bankruptcy is not a far cry if the company cannot generate more cash. This was revealed by an individual that is familiar with the matter. Elon Musk bought Twitter Inc. for $44 billion.
The Top Confidante Quit, and Others in the Queue
The warning was signalled two weeks into acquiring the microblogging platform that Musk bought. During these two weeks, he has fired several top executives and has asked the remaining workforce to operate from the office and not work remotely. One of the employees who had proved to be quite active in Musk’s new team Yoel Roth, left the company, according to the people who are aware of the situation. Robin Wheeler resigned as well, but Elon Musk was found persuading her to continue at Twitter Inc.
The buyout has managed to remove the micro-blogging site from the public market scrutiny, but Musk has loaded the firm with about $13 billion of debt, which is now in the hands of seven banks of Walls Street, which was not able to offload the same to the investors.
Erosion of Confidence on Twitter Inc.
The company is currently undergoing a phase where the confidence of the people in it has eroded rapidly. As such, even before Elon Musk revealed the possible bankruptcy crisis, it was found that few investors agreed to shell out as little as 60 cents on the dollar. This figure is typically reserved for companies deemed in financial crisis, as reported on Thursday by Bloomberg News.
While talking about the future and finances of Twitter, Musk has said that the company needs to act urgently, implementing the $8 subscription product, Twitter Blue, effectively. According to people familiar with his management style, it has come to notice that Elon Musk had earlier used this financial ruin tactic so that workers could be motivated.
He wants to convey to the employees that unless the workers put in their best and work hard, Twitter Inc. might be in the doldrums, as revealed by an individual aware of the entire situation.
The new owner of Twitter Inc. also hinted that he had plans to introduce newer products, including payments, conversational ads, and checking accounts that would bear interest. Just as in the case of TikTok, onboarding on Twitter Inc. would become easier if a few measures were introduced.
On Thursday, the chief information security officer of Twitter Inc, chief compliance officer, and privacy officer left the micro-blogging site. This has raised concerns about whether it will be possible for the micro-blogging site to adhere to the regulations. Currently, the company is facing a consent decree with the Federal Trade Commission that sees into the regulations of how companies handle user data. If it finds that companies have violated, it imposes a penalty for the violations.
