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You guys are failing to see that this was a simple misunderstanding.
Musk was told he needed to pay severance to all the ex employees, but he was confused why he was paying severance to "X employees" if they were still employed, so he simply didn't.
It's an easy mistake. Anyone could've done it.
Hence the rename from Twitter -- more five-dimensional chess from that crafty bastard.
Ah, the old Ravenous Bugblatter Beast of Traal gambit.
Elon Musk’s alleged penchant for not paying bills is catching up with him.
Citation required. It's not having any effect on him personally, the businesses are the ones which are affected. And when you're not depending on your businesses to eat and live, there are zero consequences.
They're all his shitty decisions, but as usual, he doesn't pay for it. The profits are privatised while the losses are socialised. And I'm pretty sick of the media counting eggs before they hatch, because they usually don't hatch at all.
Elon Musk’s alleged penchant for not paying bills is catching up with him.
Citation required.
Not paying rent for Boulder office:
https://techcrunch.com/2023/06/14/twitter-is-being-evicted-from-its-boulder-office-over-unpaid-rent/
Not paying rent for San Francisco office:
https://arstechnica.com/tech-policy/2023/01/twitters-landlord-sues-for-millions-in-unpaid-rent-at-firms-us-headquarters/
Not paying consulting firm:
https://arstechnica.com/tech-policy/2023/01/twitter-hired-experts-for-case-against-musk-now-musk-wont-pay-them-lawsuit-says/
Not paying interest on loan:
https://arstechnica.com/tech-policy/2023/01/looming-twitter-interest-payment-leaves-elon-musk-with-unpalatable-options/
Yes, the business he bought (with not only his money) has been sued and evicted. The only time Musk has personally ever been on the hook was when he tried to wriggle out of buying said business, and the business sued him personally. Otherwise, he can walk away consequence-free from everything else.
Yes, the business he bought (with not only his money)
That's literally part of the problem. He hadn't paid interest on the loan he took out to buy Twitter.
But also, he was CEO when these things all happened. He is the one who made the decisions not to make payments toward rent on two of his offices, toward his loan, or toward his consulting firm. I'm not sure what sort of mental gymnastics you're doing to say that he isn't responsible for these things. Twitter wasn't having those problems pre-Musk, and is only having these problems as a direct result of Musk's decision-making. That's kinda part of what being a CEO entails.
Not sure why one would ask for citations and then dismiss them.
They aren't saying he pays his bills, they're saying there are effectively no consequences for him personally every time he does it. He's not the one footing the bill for these Xitter lawsuits, it's his company.
He privately owns Twitter, so he can do whatever he wants with it.
The issue is that he took out billions of dollars in Tesla stock loans to cover the Twitter sale, so if Twitter fails and the people that gave him cash ask for the cash back: he has to hand over his collateral, which is largely his controlling stake in Tesla.
I think they meant citation required for the "is catching up with him" part.
I haven’t yet seen an article where a reporter totals up the numbers and associated dollar amounts associated with Musk’s mismanagement. In terms of general classes - and I’m just going off the top of my head here - we’re looking at (including only the twitter related ones):
There were also potential suits over mass terminations contrary to state and national laws, but I haven’t heard as much about those recently.
In the event that Twitter files for bankruptcy, would it partially shield them from all that debt? Yeah, it's a dirty play and would totally expect Elon to do it if he could.
its so much worse than just that. there are so many financial mechanisms to avoid liability its not even funny. most of the unwashed are unfamiliar with them because they are specifically written to keep rich people rich.
money flows to the top, accountability... not so much. and that is 100% the design.
the twist here is a callous, idiotic billionaire using this lack of responsibility for his own enjoyment. he will never, ever personally suffer for any of the harm caused to all humans affected by his terrible business practices. he is shielded by money, or what we call money these days.
twitter will cost him billions in personal funds when it goes under, and it will not affect him at all.
Imagine the headlines. World's richest man files for bankruptcy.
That's the funny part, he won't. It's Twitter that will as it is a separate entity.
That’s the funny part, he won’t. It’s X that will as it is a separate entity.
I am a free speech absolutist and I am saying Twitter. Prepare to be banned from the entire Fediverse.
X just might mark the spot for treasure here
X is not gonna give it to ya
So was the rebranding of Twitter to X just so Elon could say "U fuckin' wot m8? This company is X, and your employment contract is with Twitter, so it looks like you were never employed here."?
Fortunately that doesn't work.
Even if Musk totally shut down Twitter, then opened an identical platform named X, the contracts Twitter held are still enforceable under the law.
There might be stipulations in the contracts where severance isn't payable if the company fails, but if I remember correctly, this severance is something mandated by state law, and not just a contractual perk.
So bottom line, Musk is liable unless his lawyers are able to worm their way into a settlement.
Couldnt happen to a nicer dbag
he couldn't care less, he's worth 95 Billion more now than when he purchased Twitter, the cruelty is the point
Smart. Flush money down the toilet trying to impersonate Trump by not paying your bills. Maybe he should run for president.
This sounds like purposeful sabotage, but then again I've been saying that daily since Musk took over.
Waiting like this was smart. Unfortunately.
Options:
Stall as long as possible. Twitter makes a bunch of money. Have money to pay severances. All good.
Twitter fails anyways. No money to pay anybody but had as long a runway as possible. Bankrupt and a financial guy nominated by a judge sorts it out.
When a company files for bankruptcy, employees who are owed money get first dibs on the liquidated assets.
What's that come out to, around? 4 weeks pay per employee?
Well, minimum 2 months per employee plus the 4 weeks. Let’s figure an average salary of $80k. 6000 employees with an average tenure of 4 years. Let’s go ahead and round that to 3 months salary. So he’s paying the equivalent of 1500 employee’s average salary. That works out to about $120m.
I think my salary estimate is low there, and I have no idea what the tenure of the employees would be. Either way, not a small sum for a company that’s barely treading water.
I am gyessing that engineers at Twitter were probably making around $150k per year, give or take.
I would guess 150-250k.
Twitter was known for lower pay (and a lower pace) than the big names, but it's still the bay area.
That's probably more accurate.
$80k/year*.25year*2200 = $44m in this case, though like you said your salary estimate is probably low
I could be mistaken, but I think the severance was three months when he bought the company.
So 12 weeks? That's a big chunk of change. Not much to him, though.
Yeah, you'd think so. But apparently it is since he hasn't paid anyone.
Yeah this mofo is sitting on mountains of cash and like Trump, he just doesn't pay his bills.