Illustration: Shoshana Gordon/Axios
Twitter stopped paying rent on some of its office leases and hasn’t paid many other vendors since Elon Musk acquired the company in late October, Axios has learned from multiple sources.
Why is this important: One of the richest men in the world fails to honor financial obligations to those with far fewer resources.
What there is to know: Twitter had offices around the world before Musk acquired it, and many of them are still in use. But he rents the space, rather than owning it.
- Since Musk took over, the monthly bills have not been paid.
Axios got emails between Twitter employees and several frustrated owners, who could best be described as getting tricked.
- In some cases, landlords offered lease termination agreements in which Twitter did not owe the full amount, but were rebuffed.
A major problem Seems to be that many of the owners’ contacts on Twitter have been fired or quit, leaving behind junior employees trying to catch up.
- But the delinquency is so rampant that some believe it’s a de facto policy under Musk, as one suggests. New York Times report on how the new business owner is looking to cut costs.
What they say : Bill Reynolds, a Colorado landlord who leased Twitter about 40,000 square feet in Boulder, told Axios, “If you don’t pay, you don’t stay. They don’t pay, so they don’t stay.”
- Another source who claims Twitter owes them hundreds of thousands of dollars notes that these trade disputes have a human cost: “They owe me money, but then those dollars would go to almost 25 other people.”
- Twitter no longer has a communications team or other spokespersons Axios can contact for comment.