Elon Musk Tells Twitter Workers, “Chapter Is Not Out Of The Query” – Deadline
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After just lately shedding half of Twitter’s staff and on the identical day that three of the corporate’s high safety executives give up, the world’s wealthiest man reportedly instructed Twitter’s remaining product crew members that the corporate he simply purchased might see “internet destructive money movement of a number of billion {dollars}” in 2023 and “chapter is just not out of the query” if that occurs.
“We will’t scale to a billion customers and take large losses alongside the way in which, that’s not possible,” Elon Musk mentioned at a product crew all fingers immediately in response to a number of reviews. Nevertheless, he continued, “you probably have a compelling product, folks will purchase it. That has been my expertise at SpaceX and Tesla.”
Whereas evaluating Twitter — a media know-how platform — to auto manufacturing or creating spacecraft for presidency and enormous company initiatives is just not precisely apples to apples, Musk specified that his thought of “compelling” for the social media firm consists of including video content material and bolstering compensation for content material creators.
Musk additionally said plainly that the corporate must “usher in additional cash than we spend.”
His $44 billion buy of Twitter final month included $13 billion in debt which is able to reportedly incur curiosity funds of over $1 billion within the subsequent yr. In accordance with Reuters, these funds “exceed Twitter’s most just lately disclosed money movement, which amounted to $1.1 billion” as of June.
Musk has mentioned that he completed promoting roughly the $7 billion in Tesla he wanted to fund the sale in August. However SEC filings indicated that he has bought almost $4 billion extra in Tesla inventory within the two weeks for the reason that Twitter deal closed.
Talking of federal businesses, Tesla has a report due tomorrow to the FTC to stay in compliance with a 2011 settlement relating to its privateness practices. It’s unclear how the resignation of Twitter’s three high safety officers immediately will affect that submitting.
“We’re monitoring current developments at Twitter with deep concern,” F.T.C. spokesman Douglas Farrar instructed the New York Occasions in a press release. “No C.E.O. or firm is above the regulation, and corporations should comply with our consent decrees. Our revised consent order provides us new instruments to make sure compliance, and we’re ready to make use of them.”
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