Elon Musk cuts Twitter bills by falling behind on payments

SAN FRANCISCO — Elon Musk is making an attempt to slash bills at Twitter as near zero as attainable whereas his private wealth shrinks — and this apparently has included falling behind on hire funds on the firm’s places of work.

Twitter owes $136,260 in overdue hire on its places of work on the thirtieth flooring of a constructing in downtown in San Francisco, in accordance with a lawsuit filed by the constructing’s landlord final week.

The owner at 650 California St., which isn’t Twitter’s fundamental San Francisco headquarters, served a discover to the social media firm on Dec. 16 informing it that it could be in default if it did not pay inside 5 days. The 5 days elapsed with out fee, in accordance with the lawsuit.

The owner, Columbia REIT 650 California LLC, is in search of damages totaling the again hire, in addition to lawyer charges and different bills. Twitter signed a seven-year lease for the places of work in 2017. The month-to-month hire was $107,526.50 within the first full yr and improve progressively to $128,397 per 30 days within the seventh yr.

Twitter didn’t reply to a message for remark. The corporate not has a media relations division.

Musk purchased Twitter for $44 billion in October and the corporate is on the hook for about $1 billion a yr in curiosity funds from the deal. Most of Musk’s wealth is tied to his possession of Tesla shares, which have misplaced greater than half of their worth since he took possession of Twitter. He has bought practically $23 billion value of the electrical car firm’s inventory to fund the acquisition since April, when he began constructing a place in Twitter. He’s even misplaced the highest spot for the world’s wealthiest particular person, in accordance with Forbes.

Musk defended his excessive value slicing measures final month in a late night time Twitter Areas name.

“This firm is like, mainly, you’re in a airplane that’s headed in direction of the bottom at excessive velocity with the engines on hearth and the controls don’t work,” Musk stated on Dec. 21.

The corporate’s headquarters are positioned at one other San Francisco tackle, 1355 Market St., the place Twitter has additionally reportedly fallen behind on hire, in accordance with The New York Instances.

Along with not paying hire and shedding employees, Musk’s Twitter can also be auctioning off high-end workplace furnishings, kitchen tools and different relics the previous, when Twitter had over 7,500 full-time employees world wide, and free lunch and different workplace perks have been widespread. Some three-quarters of Twitter’s worker base are anticipated to have left the corporate, both as a result of they have been laid off, fired or give up.

Among the many gadgets Twitter is auctioning off are a pizza oven, 40-quart business kitchen flooring mixer (retails for round $18,000; bidding begins at $25), high-end designer furnishings corresponding to Eames chairs from Herman Miller and Knoll Diamond chairs that retail within the hundreds.

Even a Twitter chicken statue (bidding begins at $25) and a neon Twitter chicken gentle show (bidding begins at $50) are up for grabs on this hearth sale-style public sale harking back to the dot-com bust of the early 2000s when failed tech startups have been promoting off their decadent workplace wares.

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