Musk warns of Twitter bankruptcy as more senior executives quit

November 10 (Reuters) – On Thursday, Elon Musk, new owner of Twitter Inc, said the social media platform could go bankrupt, ending a chaotic day that included warnings from US privacy regulators and the ouster of the company’s trust and safety leader. raised the possibility. Two weeks after the $44 billion acquisition, Bloomberg News said it couldn’t rule out bankruptcy in its first major phone call with employees, Bloomberg News reported. Musk warned in his first company-wide email that Twitter “cannot survive the upcoming recession” unless it increases subscription revenue to offset declining ad revenue, three people who saw the message told Reuters. Two people familiar with the matter told Reuters. Roth described himself as a “former trust and safety officer” at the company, but Roth did not respond to requests for comment. Bloomberg and the tech site Platformer first reported the resignation. Earlier on Thursday, Lea Kissner, Twitter’s chief information security officer, tweeted that a Reuters-verified privacy team lawyer had shut down the messaging system. In a tweet late Thursday, Wheeler wrote to employees that she was staying with the company, which, contrary to previous media reports, she said she would also be leaving. . This resignation risks Twitter potentially violating regulatory mandates. Musk’s attorney Alex Spiro said in an email to some employees late Thursday that Twitter would be compliant. “Spiro wrote. He said that only Twitter, not individual employees, could be held accountable for orders.” I understand that you mentioned that a Twitter employee could go to jail without even working on the FTC issue. If we didn’t comply, this simply wouldn’t work,” he wrote. The Twitter app can be viewed on a smartphone in this picture taken on July 13, 2021. REUTERS/Dado Ruvic/Illustration//File Photo Musk tweeted Thursday afternoon that many employees warned the company could lose billions of dollars over the next year, adding that in an email to employees, Musk added that remote work would no longer be allowed in the office for at least 40 hours per week. Twitter, Musk and Spiro did not respond to requests for comment on possible bankruptcy, FTC warnings or resignations. On the 27th, he said the company was losing more than $4 million a day, mainly to advertisers after he took over. Twitter is owing $13 billion in debt after the transaction and has to pay a total of close to $1.2 billion in interest over the next 12 months, which is Twitter’s highest payment of $1.1 billion as of the end of June. Exceeding recently disclosed cash flow. Musk has started charging $8 a month for Twitter Blue service with blue check confirmation. Warning “We are tracking recent developments. The FTC’s head of public affairs, Douglas Farrar, expressed deep concerns on Twitter. “No CEO or company is above the law and companies must follow our consent orders. The amended consent orders give us new tools to ensure compliance, and we are ready to use them. ‘ said Farrar. Twitter has agreed to pay $150 million to settle the FTC’s claims. After stating that the information was collected for security purposes only, they abused personal information such as phone numbers as targeted advertising to users. reason. On Thursday, Twitter’s privacy lawyer noted in an internal memo that Spiro said Musk was “ready to take huge risks” with the company. The lawyer quoted Spiro as saying, “Elon launches rockets into space and is not afraid of the FTC. Twitter’s takeover raises concerns that Musk, who often jumps into political debates, may face pressure from the state to control his online speech. US President Joe Biden said on Wednesday that Musk’s “cooperative and/or technological relationship with other countries is worth looking at.” Force for truth and stop fake accounts. His convictions won’t be enough Chipotle Mexican Grill (CMG.N) tweeted on Thursday, “We have withdrawn paid and proprietary content from Twitter while we gain a better understanding. “It joined other brands, including General Motors (GM.N), which stopped advertising on Twitter after Musk took over. ules.Reporting by Katie Paul in Palo Alto, California and Paresh Dave in Oakland, California; Jeffrey of Palo Alto Dastin, Diane Bartz in Washington, Yuvraj Malik and Fanny Potkin in Bengaluru, and further reports by Hyunjoo Jin; Written by Sayantanani Ghosh; Edited by Shounak Dasgupta, Bill Berkrot, Deepa Babington, and Sam HolmesOur Standard: Thomson Reuters Trust Principle .Paresh DaveThomson ReutersTech reporter in the San Francisco Bay Area covering the rest of Google and Alphabet Inc. He joined Reuters in 2017 after spending four years in Los Angeles. The Angeles Times focused on the local tech industry.
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