Twitter is failing to make rent payments on several office leases—but this isn’t necessarily an indication that Elon Musk doesn’t have a rationale and clear plan for the company.
- Elon Musk became the owner and CEO of Twitter in October, and after nearly two months, the platform continues to court controversy and chaos, as users and advertisers struggle to understand the billionaire’s vision for the social-media platform.
- Multiple Twitter office leases aren’t having their rent paid and may be foreclosed by the landlords, according to documents obtained by The New York Times.
- It is unclear if Twitter reneging on rent is caused by Musk’s attempts to lower company spending or that Twitter no longer has the communications and support staff necessary to facilitate conversations between Twitter and the landlords.
Why it’s News
Elon Musk’s professional reputation has suffered since the purchase of Twitter, with the $44 billion purchase appearing erratic and not well thought through. Musk’s subsequent behavior has earned him alot of negative publicity and public criticism, with major celebrities leaving the platform.
Twitter not paying its rent is just another indication to his critics that he isn’t in control of the situation.
“One major issue seems to be that many of the landlords’ contacts at Twitter have either been fired or quit, leaving behind junior staffers who are trying to catch up. But the delinquency is so widespread that some believe it’s de facto policy under Musk,” says Axios.
The consensus may not reflect reality. Early criticism from last month said Twitter was likely to fall apart without the larger support staff and yet the social-media platform is still fully operational and making incremental improvements after six weeks of Musk’s leadership.
Musk is a billionaire, a genius, and the founder of at least four successful companies—SpaceX, Tesla, Neuralink, and The Boring Company. He has a very specific vision for the companies he builds and he is able to make them profitable and industry-leading—even when his behavior is erratic. He can afford to invest his money in what he wants to do.
There are also reasons why he could be taking the steps he’s done. Twitter was operating at a $344 million loss in quarter two and needs to shake off “dead weight” to stay afloat. He needed to start his leadership by figuring out who in the company was capable of doing the work he needed to get done. It is also likely that he sees Twitter as a platform to launch new technology or payment processing alternatives, Yahoo Business reports.
“Sure, not everyone is a fan of his new strategy at Twitter. #RIPTwitter has been everywhere, with users saying their goodbyes and sharing their other social media accounts just in case Twitter collapses. But Musk might have the last laugh, as discussions around the subject are actually boosting user engagement,” says Yahoo Business.