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Twitter stops paying rent for San Francisco and London headquarters

It’s no secret that Twitter hit hard times. And things are not going well with Elon Musk’s latest acquisition. The company is facing two new lawsuits from different landlords, exacerbating many existing legal problems.

According to several news outlets, including BBC, the keeper and Bloomberg. The Crown Estate manages property owned by the British monarch (i.e. King Charles III), which appears to include Twitter’s office space in central London, near Piccadilly Circus. The Royal Real Estate Corporation reportedly contacted Twitter about its rent debts, to no avail, before taking legal action last week.

It is not clear exactly how much money is linked to the lawsuit in the UK. Gizmodo contacted the Crown Estate via email and did not immediately receive a response.

Then a very similar problem brews on the American side of the Atlantic. Twitter did not pay rent for its San Francisco headquarters in December 2022 or January, according to a lawsuit filed by the building’s owner against the company. On Friday . call notifying twitter The lawsuit was filed on Monday.

In total, the social media platform owes real estate company SF SRI Nine Market Square LLC $6,791,537.43. a complaint. Twitter is renting space on eight floors of 1355 Market Square totaling 463,855 square feet, the lawsuit says. Although December New York Times report noted that Musk united the workers on just two floors.

The social media company has already faced a lawsuit from another homeowner in San Francisco due to alleged unpaid rent in a small office space in the city. In this case, the Columbia REIT-650 California LLC landlord claimed that Twitter owed $136,260 in rent.

All lawsuits follow previously reports that Twitter deliberately decided to stop paying rent as a cost-cutting measure following its takeover by billionaire Musk. And whether you agree with the Top Tweet approach or not, Twitter probably really needs to cut back. expenses if he’s going to stay afloat – in no small part because of Musk’s dubious purchase. As part of the multi-hyphen CEO acquisition, Musk took over nearly $13 billion in loan debtwhich will be returned from the company’s treasury in the amount of $1 billion a year.

Twitter’s main source of income is advertising sales. shrinking in recent months. Musk’s questionable penchant for “free speech” has put off some of the company’s longtime advertisers, such as United Airlines and General Motors. In search of new sources of income Musk forced subscription on the site and put forward ideas such as username sale. It’s unclear if any of these strategies have had any effect, and Twitter no longer has a public relations department, so it’s hard to ask.

Even before the burden of debt and Musk’s identity, Twitter rarely turned a profit. The company went into the black for the first time last quarter of 2017. And 2019 was his the only profitable yearsince going public in 2013. Musk appeared to be trying to reverse the loss trend as paying about $44 billion for a broken social networking site in 2022.

In addition to missed rent, other cost savings include layoffs, reduction benefitsand real furniture auction. Twitter has cut its staff from 7,000 to 7,500. up to less than 2000 through several rounds from mass layoffs, a source close to the case told Gizmodo. And that’s not including all wipers and facility workers whom the company stopped paying.

As expected, all these quick firefights led to… more lawsuits. There is at least three Job and cases of discrimination v. Twitter pending in the California courts. And I’m not a financial expert, but it looks like this growing pile of litigation could get expensive.

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