Elon Musk has warned that Twitter could go bankrupt. That’s why

Peculiarities
  • Twitter did not respond to requests for comment on the potential bankruptcy, FTC warning, or layoffs.
  • Last week, Elon Musk announced plans to cut half of the company’s staff.
  • In May, Twitter agreed to pay $228 million to settle charges from the Federal Trade Commission.
Twitter’s new owner Elon Musk has raised the possibility of the social media platform going bankrupt, ending a chaotic day that included a warning from a US regulator and the exits of top executives seen as future leaders.
According to Bloomberg News, the billionaire told Twitter staff he couldn’t rule out bankruptcy two weeks after buying the company for $44 billion ($67 billion), a deal that loan officers said left Twitter’s finances in a precarious position.

Two executives — Yoel Roth and Robin Wheeler — who moderated a Twitter Spaces chat with Mr Musk on Wednesday as he tried to assuage advertisers’ concerns have resigned, one person close to the matter told Reuters.

Mr. Roth and Mr. Wheeler did not immediately respond to requests for comment. Bloomberg and tech site Platformer were the first to report the release.
Earlier Thursday, Twitter’s head of security Lea Kissner said she had quit.
Privacy Director Damien Kieran and Compliance Director Marianne Fogarty also resigned, according to an internal message posted on Twitter’s Slack messaging system seen by Reuters.

The US Federal Trade Commission said it was monitoring Twitter with “deep concern” after its privacy and compliance staff quit.

The resignations potentially expose Twitter to the risk of violating regulations.
At his first meeting with all Twitter employees on Thursday, Musk warned that the company could lose billions of dollars next year, reports The Information.
Twitter did not respond to requests for comment on the potential bankruptcy, FTC warning, or layoffs.
Mr. Wheeler was the advertising face of Twitter after Mr. Musk took over.

Mr. Musk, who relentlessly moved into a clean house after acquiring Twitter for $67 billion on Oct. 27, said the company is losing more than $6.1 million a day, largely because advertisers have started fleeing. when he came to power.

Mr. Musk saddled Twitter with $20 billion in debt, on which he will have to pay about $1.8 billion in interest over the next 12 months.
The payouts exceed Twitter’s latest disclosed $1.7 billion cash flow as of the end of June.
Last week, Mr. Musk announced plans to cut half the company’s staff, promised to stop fake accounts, and is charging $12 a month for Twitter Blue, which will include blue check verification.

“We are following the latest developments on Twitter with deep concern,” Douglas Farrar, director of communications for the Federal Trade Commission, told Reuters.

“No CEO or company is above the law, and companies must follow our consent decrees. Our revised Consent Order gives us new tools to enforce compliance, and we are ready to use them,” Mr. Farrar said.
In May, Twitter agreed to pay $228 million to settle FTC charges of misusing personal information, including phone numbers, to target ads to users, after telling them the information was only collected for security reasons.
Twitter did not respond to a request for comment.

According to Bloomberg News, Musk sent his first email to Twitter employees on Thursday, saying that remote work would no longer be allowed and that they would be in the office at least 40 hours a week.