In recent weeks, Twitter had stopped paying rent for its headquarters in San Francisco. On January 24, 2023, the owner of the premises decided to file a complaint against the social network owned by Elon Musk. The property manager says the company failed to pay $6.78 million for December 2022 and January 2023 rent.
Several unpaid rents in San Francisco and London
In early January, landlord California Property Trust sued Twitter for failing to pay the sum of $136,250 last December. It turns out that several other payments have not been made in the past two months. According to information from Bloombergthe firm would not have paid $3.36 million in rent in December 2022 and $3.42 million in January 2023far from the hundred thousand dollars initially announced.
Similarly, Crown Estate, Twitter’s landlord in London, has decided to sue the social network for alleged non-payment of rent. The amount has not yet been disclosed. In order to deal with the multiplication of complaints, the businessman would have called on six lawyers working for SpaceX, one of the other companies he owns. By bolstering Twitter’s legal team, Elon Musk is preparing for more grievances that could come in the coming weeks.
In the grip of financial difficulties, the whimsical owner of Twitter has decided to no longer pay the rent for several of its premises located around the world. By ending these transfers, Elon Musk would like to negotiate their price downwards.
Twitter’s financial woes have been going on for several months
Since October 28, 2022, when Elon Musk became the owner of Twitter, the businessman has done everything to reduce the costs of the company. First of all, it triggered a huge wave of layoffs leading dismissal of 3,750 employees of the social network. Following this, he organized on January 17 and 18, an auction including 631 pieces from the company’s head office. She would have reported over $1.5 million to Twitter.
Despite these budget cuts, Elon Musk goes even further. Several bills remained unpaid following its takeover of the social network. The entrepreneur simply refused to pay these bills including the charter of a private jet for the sum of 197,000 dollars. In November 2022, the billionaire said Twitter was losing more than $4 million a day. Elon Musk faces the $12.5 billion debt he incurred to acquire the business.
Since taking over, Twitter has reportedly lost 50 of its top 100 advertisers. By losing them, the social network has lost a large part of its income and Elon Musk’s investment is no longer as attractive as he could have imagined.