It has not been smooth sailing for Twitter since Elon Musk bought the platform. From dwindling revenues to heavy negative criticism, Twitter has seen drastic change and sharp ups and downs since Musk became the new CEO. He has been utilizing his power to have a ‘trial-and-error’ method implemented to execute his vision of ‘Twitter 2.0’. But, the journey of acquisition has not been a smooth ride for the billionaire.
Musk completed the deal getting debt funding, selling billions of worth of Tesla stocks, and some money from his own pocket as well. Twitter also sued him for the constant delays in the completion of the buying process. Since the acquisition, the microblogging site has been experiencing dwindling revenues due to Musk’s negative image. Advertisers pulled out advertising after pressure from activists. So, he introduced a $8 monthly subscription to boost the revenue. But, it seems nothing has worked in his favor as the company has $14 million outstanding yet to be paid.
Related: Elon Musk Admits Having Tough Three Months Saving Twitter From Bankruptcy
Elon Musk Is Inundated With As Many As Nine Lawsuits Due To Non-Payment Of The Dues
It will be a year soon since Elon Musk announced his takeover over Twitter with a $44 billion deal. Even before the buyout, the new CEO was mapping his road ahead for the Twiiter.
When he completed the acquisition, Musk executed his vision sooner than later. He wanted to fasten the progress on the revamping of the platform into ‘Twitter 2.0’.
However, while doing so, he made some radical decisions. He made the decision to revamp and expand the platform during a volatile market and increasing image tarnishing.
The past ghosts started creeping up in the face of lawsuits. Recently, the jury did not find him guilty during the ‘Twitter fraud’ case where he was accused of inflating the price of Tesla stocks via a tweet alleging that the company will go private.
However, as per the Wall Street Journal, there are as many as nine lawsuits pending. These include lawsuits from landlords, vendors, and others. According to the article, “Landlords, consultants and vendors in recent months have made demands for payments in at least nine lawsuits, with their complaints totaling more than $14 million plus interest”.
Three of the nine lawsuits are for the nonpayment of the rents of office property in San Francisco. The landlord alleged that he has not paid $6.8 million rent from December 2022 to January 2023. There is $400,000 outstanding from the various branding and PR activities as per Canary LLC.
One of the experts on restructuring distressed companies, Van Conway told the Wall Street Journal, “What Elon Musk is doing is basically simulating a bankruptcy. He is taking a machete to his costs”.
In Case You Missed: Is Tesla Benefiting From Elon Musk Owning Twitter?
The Billionaire Was Accused Of Boosting His Tweets Artificially
In recent times, Twitter has been facing many allegations due to its boss. It was alleged that Elon Musk boosted his tweets artificially. In February 2023, many users noticed that Elon Musk’s tweet and his replies were emerging on their ‘For You’ feed.
It was the case with users who muted his notifications and blocked him. The Platformer reasoned that after the Super Bowl, Musk’s tweet to support the Philadelphia Eagles received less impressions than President Joe Biden.
So, he put his engineers at work to find why the impressions have reduced. One of the engineers got fired while explaining to him the technicalities of the reduction in engagement. Later, the news portal alleged that Elon Musk boosted his tweets artificially via “power user multiplier”, which boosts the tweet to 1,000 factors. The system is currently applicable to Musk’s tweets only.
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