Example: Shoshana Gordon/Axios
Twitter has stopped paying rent on some of its office leases and hasn’t paid many other suppliers since Elon Musk acquired the company in late October, Axios has learned from multiple sources.
Why is it important? One of the richest people in the world does not honor the financial obligations of those with very little wealth.
What you need to know: Before acquiring Musk, Twitter had offices around the world, and most of them are still in use. But he rents the space, not owning it.
- Monthly bills have not been paid since Musk took office.
Axios got the emails Between Twitter staff and many disgruntled landlords, they might be best described as getting the run around.
- In some cases, the landlords have offered lease termination agreements in which Twitter does not pay the full amount owed, but they have been rejected.
A big issue It appears that many of the landlord’s contacts on Twitter have been fired or let go, leaving a meager staff trying to follow up.
- But the denial is so widespread that some believe it’s the right policy under Musk, as a New York Times report suggested the company’s new owner wants to cut costs.
What they say: “If you don’t pay, you don’t stay,” Bill Reynolds, a Colorado landlord who leased 40,000 square feet of Twitter in Boulder, told Axios. “They’re not paying, so they’re not staying.”
- Another source, who said Twitter owes hundreds of thousands of dollars, explained the human cost of these trade disputes: “I deserve the money, but then the dollars go out to about 25 other people.”
- Twitter no longer had a communications team or other spokesperson available for comment on Axios.