After recently laying off half of Twitter’s employees and firing three of the company’s top security executives on the same day, the richest man in the world reportedly told the remaining members of Twitter’s product team that the company he had just bought “net worth” will have negative cash flow billions of dollars in 2023″ and “bankruptcy is not out of the question” if that happens.
“We can’t scale to a billion users and incur huge losses, it’s not feasible,” Elon Musk told a product team today, according to multiple reports. However, he continued: “If you have an attractive product, people will buy it. This is my experience with SpaceX and Tesla.”
While comparing Twitter — a media technology platform — to making cars or building spacecraft for government and big corporate projects isn’t exactly a contradiction in terms, Musk indicated that his idea to ” persuading” to add video content and strengthening compensation for content creators.
Musk also explained that the company needs to “bring in more money than we spend.”
Its $44 billion purchase of Twitter last month included $13 billion in debt that is expected to include more than $1 billion in interest payments in the coming year. According to Reuters, these payments exceed the cash flow most recently reported by Twitter, which was $1.1 billion in June.
Musk said he has finished selling about $7 billion to Tesla, which he needs to finance the sale in August. But SEC filings showed he sold nearly $4 billion more in Tesla stock in the two weeks since the Twitter deal closed.
Speaking of federal agencies, Tesla has a report to the FTC tomorrow to maintain compliance with a 2011 agreement regarding its privacy practices. It’s unclear how the resignations of Twitter’s top three security officials today will affect the filing.
“We are following recent developments on Twitter with great concern,” FTC spokesman Douglas Farrar said in a statement. “No CEO or company is above the law, and companies must follow our consent decrees. Our revised consent letter gives us new tools to ensure compliance and we are ready to use them.”
Writer: Tom Tick
Source: Deadline
Joseph Fearn is an entertainment and television aficionado who writes for The Fashion Vibes. With a keen eye for what’s hot in the world of TV, Joseph keeps his readers informed about the latest trends and must-see shows.
