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Elon almost certainly has enough money to keep funding Twitter until he gets bored with it and moves onto something else; which, granted, might not even take a
by rurp 4y ago
Elon almost certainly has enough money to keep funding Twitter until he gets bored with it and moves onto something else; which, granted, might not even take a year. It's hard to say what happense at that point but my guess is that he sells it for a fraction of the purchase price. Twitter has a big enough network that there will be something left in the wreckage that someone can try to rebuild from.
Bankruptcy could still happen of course, even if Elon still has the money. He might think that completely shutting down Twitter is less embarrasing than selling it for a 90% loss, Elon is still pretending to be a business genius after all.
- kshacker 4y ago> Bankruptcy could still happen of course, even if Elon still has the money. He might think that completely shutting down Twitter is less embarrasing than selling it for a 90% loss, Elon is still pretending to be a business genius after all. We do not know the reality. He has cut the payroll significantly (despite the severance since that is a 1 time burden), he has added paying customers with Blue, and by killing the API, he increases those paying customers. He can also browbeat or schmooze some large customers like Apple to advertise more. It may not be enough but a smaller profitable or cash flow positive twitter could still run for a while before he feels the pinch. Not sure if he can make the billion dollar interest payments, but imagine if twitter can make 800M, and his Tesla stock goes up double, he would not feel a pinch bridging the remaining 200M although he may try to get someone else (or the company) to pay for it.
- rsynnott 4y agoIf it was to go bankrupt, it's unlikely it would just be _shut down_; the creditors would take it over and install new management.