Elon Musk and Twitter both have been in the news for a couple of months for the same reason. The Tesla CEO finalized the $44 billion deal to acquire the company and has been making sweeping changes ever since. Twitter fired nearly half of its workforce to cut costs.
They have also introduced an $8-a-month subscription fee for verification. Despite all these efforts, Musk isn’t hopeful about the company’s future. He recently stated that the social media giant might be heading toward bankruptcy. Let’s find out what exactly Musk said.
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Elon Musk Warns Twitter “Bankruptcy” Possible
The South African billionaire has been trying to make changes in Twitter in an attempt to recover the cost he had to put into the acquisition deal. However, despite all the efforts, the future of the micro-blogging site seems bleak.
On Thursday, Musk told Twitter employees on a call that he could not rule out bankruptcy. Two executives, Yoel Roth and Robin Wheeler – who moderated a Twitter Spaces chat, have resigned.
Chief Security Officer Lea Kissner also stated that she had left the company. Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty also resigned.
Ever since Musk took over the company, its finances have been in perils. The SpaceX founder has been taking drastic steps to assure advertisers and introduce new features to monetize the platform.
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The US Federal Trade Commission Have Been Watching Twitter
Right after some senior executives left Twitter, the U.S. Federal Trade Commission said it was watching Twitter with “deep concern“. These resignations potentially put Twitter at risk of violating regulatory orders.
“We are tracking recent developments at Twitter with deep concern,” Douglas Farrar, the FTC’s director of public affairs said. “No CEO or company is above the law, and companies must follow our consent decrees.”
He further added, “Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them.”
In his first meeting, the South African billionaire warned that Twitter may lose billions of dollars next year. He said they are losing more than $4 million a day, mainly because advertisers are backing out once he took over.
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