Twitter Inc's new owner Elon Musk on Thursday raised the possibility of the social media platform going bankrupt, capping a chaotic day that included a warning from a U.S. privacy regulator and the exit of the company's trust and safety leader.
The billionaire on his first mass call with employees said that he could not rule out bankruptcy, Bloomberg News reported, two weeks after buying it for $44 billion – a deal that credit experts say has left Twitter's finances in a precarious position.
Earlier in the day, in his first company-wide email, Musk warned that Twitter would not be able to “survive the upcoming economic downturn” if it fails to boost subscription revenue to offset falling advertising income, three people who have seen the message told Reuters.
Yoel Roth, who has overseen Twitter's response to combat hate speech, misinformation and spam on the service, resigned on Thursday, two people familiar with the matter told Reuters.
Earlier on Thursday, Twitter's Chief Information Security Officer Lea Kissner tweeted that she had quit.
Only two weeks and Twitter might sink. If Musk decides to save Twitter with TSLA, then watch out. It seems like he's already focusing all his energy on Twitter while ignoring Tesla.
Twitter can go into a death spiral in which advertisers lose confidence, pull out, more radical changes to stop bleeding, more advertisers pull out, leading to bankruptcy or a Tesla-funded bailout.
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