Since Musk was appointed, Twitter has had difficulty retaining advertising revenue.
Twitter Inc (NYSE.TWTR). made its first payment of interest on debt, of US$300mln in the wake Elon Musk’s US$44bn acquisition.
To buy the social media company, Musk borrowed US$13bn from seven banks, including Barclays PLC, Morgan Stanley and Bank of America Corp (NYSE:BAC).
Twitter was criticized for its inability to pay the interest on the loans. A Financial Times report suggested that the lenders had been relieved of the money and that Twitter would need to file bankruptcy if it didn’t pay.
Twitter is struggling to boost its revenue. Its revenues have reportedly dropped by 40% compared to last years.
Musk’s controversial leadership has caused many advertisers to flee the platform. The platform’s workforce has been reduced from 8,000 people to 2,300 since Musk took over, cutting the accessibility, human rights and ethics teams.
According to Siddharth Rao, senior Twitter engineer, Pfizer Inc, Ford Motor Company and Meta Platforms Inc are just a few of the 500 companies that have stopped advertising on this site.
Twitter was also sued for failing to pay rent in offices in London, San Francisco, and Seattle. The King’s Crown Estate is one of the groups bringing suit.