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This is Musk stiffing a supplier for $100k. That seems unlikely to make their bankruptcy any more imminent. But it does signal (on the record, not just rumours
by jsnell 4y ago
This is Musk stiffing a supplier for $100k. That seems unlikely to make their bankruptcy any more imminent.
But it does signal (on the record, not just rumours) to literally anybody that Twitter is doing business with that they are distressed, and should be extended no credit. Payment up front, or no service.
- IG_Semmelweiss 4y agoSeems a reasonable for a service company with no inputs to COGS that are on credit terms. Payroll is not on credit, and most infra is metal, or on some VP's CC, anyway. The reasonable signal is yes indeed for Twitter vendors, if you are opex and a long contract, be ready to have our lawyers sit down and hash it out.
- HarryHirsch 4y agoit does signal ... that Twitter ... are distressed Disagree - this is automobile industry tactics where you pay your suppliers late and short because they have no choice. Musk is negotiating for lower rent.
- phpisthebest 4y agoYep... Ford, GM, and the rest have played that game for years, including just telling suppliers they are now going to pay less for parts.... and since the suppliers have built their business around that one contract there is not much they can do about
- basketdryer 4y ago> they have no choice A commercial landlord in downtown SF has many, many choices. The power imbalance here is not even remotely close to the one given in your analogy.
- plorkyeran 4y agoI think you may have missed the last three years. There is currently a very large amount of empty office space in SF.