Elon Musk demands 80
knowledge 2023-11-30 23:09:554198248
Elon Musk warned that bankruptcy would be an option for Twitter if it doesn't start producing more cash in his first speech to the company's employees since buying it for $44 billion, according to those with knowledge of the situation. The warning occurred after a turbulent beginning to Musk's leadership at the social media business, a two-week span during which he fired half of Twitter's personnel, chased out most of the senior executives, and instructed the remaining staff to stop working from home. Yoel Roth, an executive who up until Thursday had emerged as a member of Musk's new leadership team, left, according to sources familiar with the matter. Another person, Robin Wheeler, resigned as well, but Musk persuaded her to stay, according to some of the persons who asked to remain anonymous in order to safeguard their personal and professional lives. While the acquisition has shielded Twitter from public market scrutiny, Musk also saddled the firm with over $13 billion in debt, which is presently held by seven Wall Street banks but has been unable to be sold to investors. (Also Read: DNA Special: Why Jinping has told Chinese military to be war-ready and how it concerns America more than India?) According to Bloomberg News on Thursday, investor confidence in the company has plummeted so quickly that some funds were offering to buy the loans for as little as 60 cents on the dollar, a price typically reserved for businesses considered to be in financial distress, even before Musk's bankruptcy comments. Musk repeated several somber cautions in his speech to the workers. Expect 80-hour work weeks, employees. There won't be as many workplace benefits, including free lunch. He also put an end to the flexibility that permitted workers to work from home during the pandemic. "If you don't want to come, resignation accepted," he said, according to a person familiar with the matter. Musk stated that given the pushback from advertisers who are worried about bad content, Twitter must act quickly to make its $8 subscription package, Twitter Blue, something people will want to pay for. Musk was speaking about Twitter's finances and future. A person acquainted with Musk's managerial style claims that in the past, Musk has attempted to encourage staff by threatening financial disaster. According to this guy, he is trying to make the point that if people don't put in a lot of effort, Twitter will be in a very precarious position. The Information and Platformer earlier reported Musk's bankruptcy statement. He also hinted at products he'd like to introduce, including payments, ads that are more conversational, and interest-bearing checking accounts. Onboarding to the Twitter app should be smoother, as is the case with TikTok, he said. The departures of Twitter's top privacy officer, chief information security officer, and chief compliance officer earlier on Thursday raised questions about the company's capacity to maintain platform security and conform to legal requirements. A consent order between Twitter and the Federal Trade Commission now governs how the business manages user data, and infractions might result in penalties. While Wheeler, a sales vice president, had assumed responsibility for managing relationships with uneasy advertisers, Roth had since taken over all of the social network's Trust and Safety initiatives. She made a clue about her choice to remain in a tweet and a message on an internal Slack channel. According to one estimate, Twitter's interest expenses as a result of the debt it took on to finance Musk's takeover will reach $1.2 billion annually. Some advertisers have pulled back from the social network because they are worried about Musk's intentions for content policing. Additionally lacking in confidence are debt investors and credit rating agencies. The company's banks have been subtly approaching asset managers and hedge funds to inquire about their interest in purchasing a portion of the company's debt. People with knowledge of the proceedings indicated that discussions yet have focused on the $6.5 billion leveraged loan part of the deal. One of the persons claimed that banks had appeared unwilling to sell for any sum less than 70 cents on the dollar. Bloomberg calculations show that losses might still reach billions of dollars even at that level.
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