Twitter does not pay rent for a Crown-owned London office. In fact, the new CEO has been occupying all the company’s offices for free since December.
The second richest man in the world pays no rent, not even to the ruler of the United Kingdom. And so Charles III files a complaint against Twitter, Elon Musk’s company. But in Corona, it’s just the latest in a long line of creditors appealing to Musk’s wallet.
The CEO has already been sued for other offices he decided to occupy for free. The move is part of a bigger plan: trying to recoup the $44 billion paid to buy the platform. To keep it all together, Musk also held an auction to sell chairs, computers and Twitter icons.
The Cause of the English Crown
The Crown Estate, which manages the British royal family’s property portfolio, has taken Twitter to court, alleging billionaire Elon Musk’s company has failed to pay rent for its London office in recent months.
Twitter moved to offices in London’s West End in 2011, the lawsuit in the High Court in London explains. The building has now been stripped of all Twitter logos, but the company still occupies the headquarters, according to the Daily Telegraph. This is the fourth lawsuit against Twitter for alleged non-payment of rent, a strategy by Musk to cut costs through high-profile financial fights.
The news came after the owner of Twitter’s San Francisco headquarters sued the social media company for $6.8 million, over alleged non-payment of December and January rent. But the mechanism seems to replicate almost everywhere. Indeed, as the New York Times explains, Twitter has not paid the rent for all of its offices. In addition to the California Street building in downtown San Francisco, Elon Musk was also sued for nonpayment of a seat in Seattle. Twitter also refused to pay a $197,725 bill for private charter flights flown during the week of Musk’s takeover, reads a copy of the lawsuit filed in New Hampshire District Court and obtained by the New York Times. .
The plan to recover money
Musk’s aggressive moves show how he’s trying to break previous agreements on Twitter. In fact, it was he who gave the order not to pay the rent for the premises, hoping to be able to renegotiate a lower price with the owners.
In addition to not paying rent, Musk is firing half of the company’s 7,500 employees, including the head of its misinformation policy on the platform. Dangerous cuts, especially in the industry that moderated content on the platform, have also raised concerns among advertisers who have pulled their content from the platform.
Since early November, Twitter’s new CEO, along with his supervisors, has sought to save around $500 million, according to an internal document viewed by The New York Times. Additionally, Twitter’s surviving executives were forced into “zero-based budgeting,” a method that analyzes an organization’s needs and costs from a “zero base,” meaning no allocation of funds at the beginning of each period.
In the great fund stimulus plan put in place by Musk, there is also the auction of the relics of Twitter. Indeed, the company sold part of its “furniture”, including the emblematic statue of the Twitter bird, symbol of the company’s headquarters in San Francisco, sold for 100,000 dollars.
All of Elon Musk’s lawyers
When Musk joined Twitter, he had a cast of legal professionals by his side. In October, however, he fired Twitter’s chief legal officer and general counsel “for cause” and appointed his personal attorney, Alex Spiro, to lead the company’s legal and policy matters. According to some rumors that emerged in the team, Spiro was also fired following certain decisions that did not satisfy Musk, such as the retention of Twitter’s assistant general counsel, James A. Baker. Now Musk has changed tack and is turning to lawyers from other companies like SpaceX, the ones that will likely face all the unpaid rent lawsuits.