Elon Musk is rowing a drowning boat that is Twitter! The valuation of the platform has been reduced by half since he purchased it. Also, the vision he had for the microblogging site is not fully coming to fruition due to plummeting revenues. The advertisers have been pulling out their advertisements since the purchase in October 2022. He has devised many methods to maintain the declining revenue.
Along with the revenue issues, Elon Musk has also been marred by various lawsuits. Some of them are related to the non-payment of rent and dues. Recently, an Australian firm sued him for not paying dues for assisting the company with technical help. Many Twitter offices are also closed due to non-payment of rent, and one of the landlords is suing the company for not paying the rent. But why is the billionaire reluctant to pay the outstanding amount?
Related: Elon Musk Risks Bankrupting Twitter As He Puts A New Bizzare Restriction On Daily User Post Views
Elon Musk Is Playing A Holdup Game
As per the Wall Street Journal, several vendors and landlords have filed a lawsuit against Elon Musk for non-payment of outstanding debt. Three lawsuits out of nine are about office property in San Francisco. The lawsuit claims that the billionaire has not paid $6.8 million in rent. One of the experts stated, “What Elon Musk is doing is basically simulating a bankruptcy. He is taking a machete to his costs.”
A law professor at Yale University, Stephen L. Carter, wrote an article in Bloomberg about Elon Musk withholding the payments. As per his description, he is playing a holdup game. It entails that Musk is pressurizing these companies, which are not positioned powerfully to accept his terms.
Carter said, “Perhaps Musk is simply displaying his trademark optimism and plans to catch up on payments, with interest, once advertisers return to Twitter — an event whose occurrence he keeps predicting.”
In Case You Missed: “Just Connect The Dots”: Lauren Jauregui Accuses Elon Musk Of Making Changes To Twitter To Influence Upcoming 2024 Presidential Elections
An Australian Firm Sues Twitter For $665,000
Facilitate Corp., an Australian project management company, has sued Elon Musk-owned Twitter for non-payment of the dues. They filed a lawsuit on June 29, 2023, at the US District Court for the Northern District Of California.
The company helped Twitter install sensors in its London and Dublin offices. The management firm also assisted them in clearing their offices in Sydney between 2022 and 2023. They are looking to get back compensatory damages, legal costs, and interest, which are $257,000, $546,000, and $61,300, respectively.
You Might Also Like To Read: Mark Zuckerberg Introduces Microblogging Platform ‘Threads’ To Rival Elon Musk’s Twitter
