The Twitter’s newly appointed owner Elon Musk on Thursday hinted at concerns about the likelihood of Twitter’s social media giant becoming bankrupt, which would be the perfect ending to an unsettling day that featured an alert from an U.S. regulator as well as the departures from senior executives who were viewed as the future of the company.
The billionaire informed Twitter employees via a phone telephone call that he couldn’t exclude the possibility of bankruptcy Bloomberg News reported, two weeks after purchasing the company for $44 billion. It’s the deal that credit analysts claim has put Twitter’s finances in a difficult spot.
Two top executives, Yoel Roth, and Robin Wheeler – who moderated the Twitter Spaces chat with Musk on Wednesday, as he attempted to calm the concerns of advertisers and resign, a person with knowledge of the situation said to Reuters.
Roth and Wheeler have not responded to inquiries for comments. Bloomberg and the tech website Platformer announced the departures first.
The day before Twitter’s Chief Security Officer Lea Kissner tweeted that she quit her job.
Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty were also dismissed as per an internal memo posted to Slack on Thursday by an attorney from the privacy team. The message was also read by Reuters.
The U.S. Federal Trade Commission has said that it is monitoring Twitter and Twitter’s activity with “deep concern” after these three privacy and compliance officials resigned. The resignations could make Twitter at the risk of breaking regulatory rules.
At his initial meeting employees of Twitter this afternoon on Thursday Musk advised that Twitter could be losing billions of dollars over the next 12 months The Information published.
Twitter didn’t respond to requests for comments regarding a possible bankruptcy as well as the FTC warning or the announcement of a departure.
Wheeler was the persona of Twitter for advertising until Musk assumed control. Roth was the the head of integrity and safety at Twitter was quoted as saying that Twitter reduced its views of negative content on result pages by 95% as compared prior to the acquisition by Musk.
Musk the ruthless mover to a clean home after taking the control of Twitter at a price of $44 billion in October. 27th, has stated that Twitter was losing upwards of $4 million per day, mostly due to the fact that advertisers began fleeing when he took over.
Musk has slapped Twitter with $13 billion of debt. The company is expected to pay interest totaling around $1.2 billion over the next twelve months. The debt is more than Twitter’s recently revealed liquid cash flows, which was close to $1.1 billion at June’s end.
Musk revealed plans reduce half of its staff this week. Musk also promised to shut down fake accounts. Musk will charge $8 per monthly for its Twitter Blue service that will include blue check for verification.
“We are tracking recent developments at Twitter with deep concern,” Douglas Farrar, the director of public affairs spoke to Reuters.
“No CEO or company is above the law, and companies must follow our consent decrees. Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them,” Farrar declared.
The company in May Twitter was forced to make a payment of 150 million dollars to resolve claims of the FTC that it used private information, such as telephone numbers, to tailor advertisements to users, after telling that the information was gathered solely for security reasons.
In the internal memo mentioned above, the lawyer noted that Twitter’s legal head Alex Spiro say that Musk was willing to take on a “huge amount of risk” in the case of Twitter. “Elon puts rockets into space, he’s not afraid of the FTC,” the lawyer quoted Spiro as declaring.
Twitter didn’t respond to an inquiry to comment regarding the letter from the attorney, or on the departures. Spiro did not respond immediately to a request for comments.
The buyout of Twitter has raised fears that Musk who has frequently been involved in political debates, might be under pressure from nations trying to limit the online voice.
This led U.S. President Joe Biden to declare on Wednesday Musk’s “cooperation and/or technical relationships with other countries is worthy of being looked at.”
Advertisers do not feel assured
Musk spoke to marketers on Wednesday while speaking via Twitter’s Spaces feature in which he said he was determined to make the platform an instrument of authenticity and to stop fake accounts.
The assurances he gives could not suffice.
Chipotle Mexican Grill said on Thursday that it was removing its owned and paid media to Twitter “while we gain a better understanding on the direction of the platform under its new leadership.”
It is among the brands such as General Motors that have paused advertisements through Twitter since Musk was appointed, worried that he would loosen rules on content moderation.
Musk delivered his inaugural email at Twitter staff on Wednesday, stating that remote work will no longer be allowed , and they will be required to work for minimum 40 hours per week, as per Bloomberg News.