Twitter regularly loses money. But Elon Musk took on billions in debt to buy the company at a time when online advertising is slumping. Could bankruptcy be next?
"It's hypothetically possible that he could use more of his Tesla stock to bail out Twitter, or turn to his cadre of co-investors, who would probably have no trouble finding the money," said Andy Wu, assistant professor at Harvard's business school who has studied the Musk takeover.
Investment firm Wedbush Securities said the deal represented"one of the most overpaid tech acquisitions in history," pegging Twitter's fair value at closer to $25 billion. However rocky Musk's ownership continues to be, Harvard's Wu is skeptical Musk and his investors are ever going to let Twitter completely fold."In addition to potential financial returns, my sense is that Musk and his co-investors are ideologically driven, that they're really driven by values," Wu said.
So Musk's solution is revamping a service called Twitter Blue by charging $8 a month for the once-coveted blue check. This way, Musk has argued, being"verified" on Twitter is no longer reserved for the elite and more people using the service will be authenticated.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk tells Twitter employees ‘bankruptcy is not out of the question’Just two weeks after taking over Twitter, Elon Musk told employees the company is losing so much money that “bankruptcy is not out of the question.'
Read more »
Elon Musk tells Twitter employees ‘bankruptcy is not out of the question’ | EngadgetElon Musk told employees that Twitter is losing so much money that “bankruptcy is not out of the question.'.
Read more »
Mark Cuban gives Elon Musk a customer service tip, criticizes Twitter BlueWhat did the two entrepreneurs spat about?
Read more »
Twitter briefly rolled out gray 'official' check marks before Elon Musk changed his mindJust hours after the feature's debut, Musk abruptly said Wednesday he had 'killed' a new, gray verification badge, adding to the turmoil at one of the world's most influential social media companies.
Read more »
Elon Musk Tells Twitter Staff He Sold Tesla Stock to Save the Social NetworkHe made the remarks during an all-hands meeting that he hosted in part to motivate Twitter employees who remain after sweeping layoffs to work hard.
Read more »
Tweets with racial slurs soar since Elon Musk Twitter takeover, report saysInstances of racial slurs have soared on Twitter since Elon Musk purchased the influential platform, despite assurances from the platform that it had reduced hateful activity, a digital civil rights group reported Thursday.
Read more »