Elon Musk, the new owner of Twitter, said Thursday that the social media site might go bankrupt. This included a warning from a US regulator and the departures of senior executives who were seen as future leaders.
Bloomberg News said that two weeks after he bought Twitter for $44 billion. The billionaire told Twitter employees on a call that he couldn’t rule out bankruptcy. This deal, credit experts say, has put Twitter’s finances in a dangerous place.
Yoel Roth and Robin Wheeler, two executives who helped Musk run a Twitter Spaces chat on Wednesday as he tried to calm advertisers’ fears, have quit.
Lea Kissner, Twitter’s Chief Security Officer, announced Thursday morning that she was leaving the company.
Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty also quit, according to a message posted Thursday by an attorney on Twitter’s privacy team to the company’s Slack messaging system and seen by Reuters.
After these three privacy and compliance officers quit, the US Federal Trade Commission said it would keep an eye on Twitter with “deep concern.” Because of these resignations, Twitter could risk breaking the rules.
The Information said that in Musk’s first meeting with all Twitter employees on Thursday afternoon, he told them that the company could lose billions of dollars next year.
Twitter did not answer questions about possible bankruptcy, the warning from the FTC, or the departures.
After buying Twitter for $44 billion on Oct. 27, Musk moved quickly to clean house. He has said that the company was losing more than $4 million a day. mainly because advertisers left after he took over.
Twitter owes $13 billion and will have to pay close to $1.2 billion in interest over the next 12 months. The payments are more than Twitter’s cash flow, which was reported to be $1.1 billion at the end of June.
Musk said he would lay off half of the company’s employees last week. He also promised to stop fake accounts and is charging $8 per month for the Twitter Blue service. Which will include a blue check verification.
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