Musk warns twitter may have to declare bankruptcy

[oali24]

Summary

 

 So Musk told his workers at twitter that bankruptcy may happen if the company doesn't start making money, and the article says this is because his buyout of the company saddled twitter with billions in debt and he might declare bankruptcy to restructure the debt to be more favourable to him.

 

 

Quotes

Quote

In taking the company private in his $44 billion purchase of Twitter, Musk cashed in some of his Tesla stock and also saddled the social platform with $13 billion in debt, which is a massive obligation for a company the size of Twitter.

 

My thoughts

So you're telling me that the company went from a manageable amount of debt to being at risk of bankruptcy within what? two weeks, this is completely insane, and sure people are saying that if he kills off twitter that would be good, but twitter is important for many people's livelyhoods who make things like art on twitter and I don't think that their having a laugh over this, and if he needs the company to start making money that badly, you do not just immediately fire half the entire staff of the company, I'm sure layoffs have their place if you want to make a company profitable but many of those jobs also seem critical to the functioning of company. Musk should sell off his tesla stock and pay off the debt completely, its only fair since he was the one that single handedly got the company into this financial mess, the average twitter worker had absolutely no say in this.

 

Sources

https://www.npr.org/2022/11/12/1136205315/musk-twitter-bankruptcy-how-likely

[emosun]

what will we do without twitter.........

[oali24]

1 minute ago, emosun said:

oh no , what will we do without twitter.........

I don't use or have any interest in using twitter, but clearly its important to many people and lots of people  use it for their livelyhood.

[Sauron]

not much to do with tech, should be under "business incompetence news" or something

[oali24]

Just now, Sauron said:

not much to do with tech, should be under "business incompetence news" or something

I mean, there were posts here on tech news when the deal went through in the first place.

[jagdtigger]

Meh, one cesspool down the toilet.....

[emosun]

1 minute ago, Sauron said:

not much to do with tech, should be under "business incompetence news" or something

or right on the front page of out of touch billionaire boomer weekly.

[wanderingfool2]

8 minutes ago, oali24 said:

Musk should sell off his tesla stock and pay off the debt completely, its only fair since he was the one that single handedly got the company into this financial mess, the average twitter worker had absolutely no say in this.

In general the statement was made in regards to Tesla, SpaceX, and other companies he's held.  Ultimately it's a way to ensure that the goals of the company are streamlined.

 

When companies go private like this it also often uses the value of the company to get the loans necessary for purchasing the company itself.  With that said as well, Twitter was already losing money prior to the purchase...so there is a certain amount of exaggeration that is to be expected as well.  The tl;dr, Twitter was already in a financial mess before (I read somewhere out of the tech companies they had the most employee head count per $ of revenue

[Sauron]

Just now, oali24 said:

I mean, there were posts here on tech news when the deal went through in the first place.

maybe there shouldn't have been considering it has nothing at all to do with technology. it was a business acquisition and now we're seeing business decisions lead to their obvious conclusion, the underlying tech is exactly the same as before.

 

Still it was mainly my way to get a cheap jab in I don't really mind if it's posted here

[suicidalfranco]

good riddance i guess, the more social networks die, the better

[corrado33]

3 minutes ago, suicidalfranco said:

good riddance i guess, the more social networks die, the better

Says the person posting on a social media network. 

[suicidalfranco]

3 minutes ago, corrado33 said:

Says the person posting on a social media network. 

since when is a forum a social media network

[oali24]

35 minutes ago, jagdtigger said:

Meh, one cesspool down the toilet.....

 

35 minutes ago, emosun said:

or right on the front page of out of touch billionaire boomer weekly.

 

1 minute ago, suicidalfranco said:

good riddance i guess, the more social networks die, the better

like guys, sure you may not like twitter, but a lot of people depend on twitter for their livelyhoods, and twitter is a much smaller company than other social media and at least kind of tries to deal with misinformation.

[suicidalfranco]

3 minutes ago, oali24 said:

 

 

like guys, sure you may not like twitter, but a lot of people depend on twitter for their livelyhoods, and twitter is a much smaller company than other social media and at least kind of tries to deal with misinformation.

i would be just as glad if it also happened to fb, tiktok, snapchat and co.

[corrado33]

14 minutes ago, suicidalfranco said:

since when is a forum a social media network

Since.... forever? 

 

Forums were the ORIGINAL social media websites. Reddit is one of the largest social media websites that it's just one huge forum. 

[suicidalfranco]

1 minute ago, corrado33 said:

Since.... forever? 

 

Forums were the ORIGINAL social media websites. Reddit is one of the largest social media websites that it's just one huge forum. 

forums were forums. they are a completely different thing from sn. Reddit is more of an image board than a forum, far from a sn

[emosun]

12 minutes ago, suicidalfranco said:

forums were forums. they are a completely different thing from sn. Reddit is more of an image board than a forum, far from a sn

i honestly didn't think we'd see the day when social and network needed to be explained.

anything thats a network where you socialize is a social network. the toxic in game chat in cod is a social network. carrier pigeons sending tiny notes to the two other people who use them is a social network. yeesh

[Kisai]

33 minutes ago, suicidalfranco said:

since when is a forum a social media network

1999 called. Usenet and IRC are unusable for communties due to the lack of moderation controls, where can be go to keep the spam at bay? 

 

BTW look up what "forum" actually is. 

Quote

a place, meeting, or medium where ideas and views on a particular issue can be exchanged.

"it will be a forum for consumers to exchange their views on medical research"

 

1 hour ago, oali24 said:

Summary

 

 So Musk told his workers at twitter that bankruptcy may happen if the company doesn't start making money, and the article says this is because his buyout of the company saddled twitter with billions in debt and he might declare bankruptcy to restructure the debt to be more favourable to him.

...

Sources

https://www.npr.org/2022/11/12/1136205315/musk-twitter-bankruptcy-how-likely

Honestly, who didn't see this coming? 

 

Elmo doesn't really know jack about running a company. This is what happens when a vulture capitalist gets "owned" by their own greed.

 

You watch, Elmo will survive, assets intact. Twitter will be "spun off" from his assets before it declares bankruptcy and just left to implode. 

 

I'm sure the FTC will go after him for multiple reasons

https://www.cnn.com/2022/11/11/tech/musk-twitter-ftc/index.html

Quote

Under Twitter’s latest FTC consent order, which was implemented this year, Twitter must submit a sworn compliance notice to the regulator within 14 days of any such change. The compliance notice is intended both to advise the FTC of major changes at the company as well as a commitment that it will continue to comply with the order, according to David Vladeck, a former senior FTC official and a law professor at Georgetown University.

https://www.theverge.com/2022/11/10/23451198/twitter-ftc-elon-musk-lawyer-changes-fine-warning

Quote

In a note posted to Twitter’s Slack and viewable to all staff that was obtained by The Verge, an attorney on the company’s privacy team wrote, “Elon has shown that his only priority with Twitter users is how to monetize them. I do not believe he cares about the human rights activists. the dissidents, our users in un-monetizable regions, and all the other users who have made Twitter the global town square you have all spent so long building, and we all love.”

 

The FTC reached a settlement with Twitter in May after the company was caught using personal user info to target ads. If Twitter doesn’t comply with that agreement, the FTC can issue fines reaching into the billions of dollars, according to the lawyer’s note to employees.

 

If you've been paying attention to Twitter over the last week, it's been "Elon drove the twitter ship straight into the iceberg, and then charged people 8 dollars to get in line to the lifeboats"

 

I haven't seen a bigger idiotic move in social media since FOX New's parent company tried to buy Myspace.

[suicidalfranco]

1 minute ago, emosun said:

i honestly didn't think we'd see the day when social and network needed to be explained.

anything thats a network where you socialize is a social network. the toxic in game chat in cod is a social network. carrier pigeons sending tiny notes to the two other people who use them is a social network. yeesh

yeeeah... nope

im not going to fall in a semantics discussion, forums are forums, sn are sn, forums are not sn and vice versa. Im done

[emosun]

9 minutes ago, suicidalfranco said:

yeeeah... nope

im not going to fall in a semantics discussion, forums are forums, sn are sn, forums are not sn and vice versa. Im done

Lemme guess, you have 8 fingers right? Because thumbs aren't fingers yeah? Ill assume thats how you see it as youre "done" and all.

 

 

[suicidalfranco]

8 minutes ago, emosun said:

Lemme guess, you have 8 fingers right? Because thumbs aren't fingers yeah? Ill assume thats how you see it as youre "done" and all.

 

 

yep, not wasting my time in semantics

[porina]

The source doesn't go into detail, how does buying a company suddenly give it massive debt? Costs relating to the purchase? Not sure that makes any sense.

 

I'm a casual user of Twitter, and there are much worse places to visit. Didn't care much as long as the buyout doesn't affect me. I guess it does now. I've heard many people are moving to Tumblr. They got declared dead when they banned pron in the past, but I guess they're not that dead and this might be a chance for them to return.

 

Not sure there is anything else really like Twitter that isn't so small as to be practically insignificant. Insta is more image focused which could take some of the slack. 

[jagdtigger]

1 hour ago, oali24 said:

but a lot of people depend on twitter for their livelyhoods

This will sound cold but if they bet everything on one thing without fallback plan, well thats on them...

[HenrySalayne]

... because the clowns are in charge now. What a surprise.

 

13 minutes ago, porina said:

The source doesn't go into detail, how does buying a company suddenly give it massive debt? Costs relating to the purchase? Not sure that makes any sense.

There could be a number of reasons, but AFAIK this is a common practice. In this particular case it seems several banks lend Musk 13 billion USD to takeover Twitter which now Twitter owes to these banks.

[Kisai]

37 minutes ago, porina said:

The source doesn't go into detail, how does buying a company suddenly give it massive debt? Costs relating to the purchase? Not sure that makes any sense.

 

 

7 minutes ago, HenrySalayne said:

 

 

There could be a number of reasons, but AFAIK this is a common practice. In this particular case it seems several banks lend Musk 13 billion USD to takeover Twitter which now Twitter owes to these banks.

 

https://www.investopedia.com/terms/v/vulturecapitalist.asp

Quote

A vulture capitalist is a type of venture capitalist (VC) who looks for opportunities to make money by buying poor or distressed firms. Just like the bird they are named after, vulture capitalists are predatory in nature. They will wait until they see the right opportunity and swoop in at the last minute, buying stakes at the lowest possible price.  

...

Vulture capitalists get cheap deals by targeting companies that financial institutions (FIs) do not want to lend money to. After failing to obtain credit or funds from banks and/or other investors, the struggling company often has no choice but to accept whatever help is on offer.

 

Once onboard, the vulture capitalist will piece together aggressive financial goals. They start out by attempting to revive the business, cutting costs wherever possible to boost profits. If they don't succeed in this goal, vulture capitalists will often resort to selling off assets such as land, buildings, and machinery.

This is literately it.

 

Next prediction, Elmo will sell consolidate ...

and then sell off all the real estate assets.

 

Quote

Regardless of the outcome, vulture capitalists almost always find ways to squeeze money out of their investments. That remains the case, even if the company a vulture capitalist acquires eventually ends up filing for bankruptcy.

 

Quote

Criticism of Vulture Capitalists

Vulture capitalists are regularly talked about negatively. Critics attack them for stripping companies down to the bone in order to line their own pockets, for aggressively laying off staff, and for lending money at very high interest rates to companies that they should instead be trying to help.

 

Often, vulture capitalists will go to great lengths to make money off their investments, even if it means boosting unemployment and driving a company into the ground. 

 

Anyway. Download your data from Twitter now, because the last thing you want is for the company to go bankrupt and then that data ending up in the hands of a data broker or foreign entity.

 

Remember NCIX?

https://www.cbc.ca/news/canada/british-columbia/ncix-breach-probe-1.4833976

Quote

The RCMP and Office of the Information and Privacy Commissioner of British Columbia are investigating allegations of a possible data breach involving the bankrupt computer retailer NCIX.

 

Authorities are investigating a claim that NCIX's database servers have been advertised for sale online with all of the information still intact.

 

Now imagine that happening to twitter.