Twitter owner Elon Musk let it slip that Twitter could go bankrupt, in his first address to Twitter Inc. employees after buying the company for $44 billion in October.
Musk said that bankruptcy “was a possibility if it does not start generating more cash,” people familiar with the matter told Bloomberg.
The Tesla and SpaceX chief executive’s warning came during the ongoing firing spree of employees which include top executives. Musk had also cancelled remote working for all employees, earlier this week.
The buyout removed Twitter Inc. from public markets, and is now facing almost $13 billion in debt, that is “now in the hands of seven Wall Street banks that have been unable to offload it to investors.
Twitter Inc’s investors include Saudi Arabia’s Prince Alwaleed bin Talal, Qatar Investment Authority, the social media platform’s co-founder Jack Dorsey, and Binance chief Changpeng “CZ” Zhao.
“Confidence in the company has eroded so rapidly that, even before Musk’s bankruptcy comments, some funds were offering to buy the loans for as little as 60 cents on the dollar – a price typically reserved for companies deemed in financial distress,” Bloomberg News reported on Thursday.
During his address to the now existing set of employees, Musk had reportedly issued a slew of additional warnings as well.
Some of these include, bracing for 80-hour work weeks, fewer office perks like free food, among others.
“If you don’t want to come, resignation accepted,” Musk said, according to Bloomberg, adding “we all need to be more hardcore.”
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