Elon Musk’s net worth declined and Twitter sued over $136260 in unpaid rent. As his personal fortune declines, Twitter CEO Elon Musk is reportedly cutting costs to the bone, including skipping rent payments on the company’s offices.
The landlord claims that the social media company has not paid the rent for the California Street location in San Francisco. In an effort to reduce Twitter’s costs to zero as his personal wealth declines, Elon Musk has reportedly stopped paying the rent on the company’s offices.
Why Twitter Sued Over $136260 in Unpaid Rent?
The landlord of Twitter’s 30th-floor San Francisco offices filed a lawsuit against the company last week, alleging that Twitter owes overdue rent of $136,260 (£113,601). When Twitter didn’t pay its rent by the due date, the landlord at 650 California Street not the company’s main San Francisco headquarters served them with a notice on the 16th of December.
According to the complaint, the defendant went five days without making payment. Columbia REIT 650 California LLC, the landlord is suing for the unpaid rent plus damages for the landlord’s attorney fees and other costs. Twitter leased the space for a minimum of seven years beginning in 2017. The first full year’s rent was $107,526.50 (£89,646), and by the seventh year, it had risen to $128,397 (£107,045).
We reached out to Twitter for comment but did not receive a response. An internal media relations team has been disbanded. In October 2022, Musk paid $44 billion (£37 billion) to purchase Twitter. Since then, Twitter has been responsible for paying Musk approximately $1 billion in interest each year. Musk’s wealth is largely tied to the value of his shares in Tesla, which has dropped by more than half since he acquired Twitter.
Since April, when he first started amassing a position on Twitter, he has sold nearly $23 billion (£19 billion) worth of the electric vehicle company’s stock to finance the purchase. According to the reports, he is no longer the richest person in the world. In a late-night Twitter Spaces call last month, Musk defended his extreme cost-cutting measures.
On December 21st, Musk compared working for the company to being basically in a plane that is headed towards the ground at high speed with the engines on fire and the controls don’t work. It was reported that Twitter has also stopped paying rent at its headquarters at 1355 Market Street in San Francisco. Musk‘s Twitter isn’t just skipping rent payments and firing employees.
It’s also auctioning off high-end office furniture, kitchen equipment and other relics from the days when the company employed more than 7,500 people full-time across the globe and provided perks like free lunch and massages. It is estimated that roughly three-quarters of Twitter’s workforce has left the company due to layoffs, firings or voluntary resignations.
Some of the items up for auction on Twitter include a pizza oven and a 40-quart commercial kitchen floor mixer that retails for around $18,000; bidding starts at $25 and thousands of dollars worth of designer furniture like Eames chairs from Herman Miller and Knoll Diamond chairs. This fire sale-style auction is reminiscent of the dot-com bust of the early 2000s when failed tech startups were selling off their extravagant office wares and features everything from a Twitter bird statue bidding starting at $25 to a neon Twitter bird light display (bidding starts at $50).
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