Twitter To Face Potential Bankruptcy by 2023: Is Elon Musk To Blame?

Andi C., Tech Times 11 November 2022, 03:11 pm

Elon Musk reveals the possibility of Twitter filing for bankruptcy by 2023 just two weeks after buying the social media app.

In case you missed it, Elon Musk has recently taken over Twitter, making the social media app the subject of numerous controversial headlines as of late. It all started with thousands of Twitter employees getting laid off, parody accounts getting banned permanently, verified accounts impersonating each other, and the Twitter blue check mark getting discontinued after Musk tried to monetize it.

The whirlwind of events on Twitter that transpired in just two weeks leaves users confused as to where the social media app is heading. Now, Musk warns employees regarding the potential future of Twitter in a recent emergency meeting.

Elon Musk Drops Major Twitter Bombshells in Meeting

During an all-hands emergency meeting with Twitter employees, Musk drops a major bombshell revealing that the social media app filing for bankruptcy in the next year is a possibility considering the mass departure of its senior executives.

Several sources who were present during the meeting attested that Musk warned Twitter employees that the company did not have the financial means to survive in case the app's revenue continued to flop until next year.

Notably, Musk bought the company for $44 billion, a deal which experts commented has left Twitter's finances in a precarious position, according to The Straits Times. Twitter had already been struggling to generate profit even before Musk's takeover. Thus the existing financial pressure on the social media platform can either improve or suffer more losses after falling under new management.

Twitter Owner Elon Musk in Hot Waters After US Regulator Gives Warning

Recently, The Washington Post reported that quite a few of Twitter's top executives, such as Head of moderation and safety Yoel Roth, Chief Compliance Officer Marianne Fogarty, Chief Information Security Officer Lea Kissner, and more had left the company after Musk's takeover.

The alarming risk of departure may take its toll on Twitter, considering that the firm was fined $150 million in May for selling users' data which caused them to revisit its privacy rules, according to BBC.

The mass departure of its security and privacy team has caught the watchful eye of US regulators, raising concern about the state of the social media app. The Federal Trade Commission's Director of Public Affairs, Douglas Farrar, warned Musk that Twitter was under the radar of authorities.

"We are tracking recent developments at Twitter with deep concern," FTC Director of Public affairs Farrar said. "No chief executive or company is above the law, and companies must follow our consent decrees."

Additionally, Farrar had warned Twitter that the FTC currently possesses new tools to ensure compliance and that they are prepared to use them if more concerns arise.

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Written by: Andi C.