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Twitter's financial troubles deepen

by on07 February 2023

If only it could find a competent financial expert who was not a business genius 

Social notworkingatall site Twitter is finding it harder to pay the bills since business genius and supreme twit Elon [look at me] Musk took over.

We have reported a number of cases where the company has been failing to pay its rent and bills and Musk has ordered his staff to bring in toilet paper and cleaning equipment to save cash. 

Now Wall Street corporate advisory firm Innisfree M&A has become the latest to sue Twitter over unpaid bills.  The company wants $1.9 million for what it says are unpaid bills for advisory services to Twitter on its sale to Musk last year.

Twitter hired Innisfree to help communicate with its shareholders about the $44 billion deal, but was never paid, the firm said in its lawsuit.

“As of December 23, 2022, Twitter remains in default of its obligations to Innisfree under the agreement in an amount of not less than $1,902,788.03,” states the lawsuit.

Part of Twitter's problem is that when Musk bought the company he saddled it with $13 billion in debt which the company must pay back while making large interest payments. Musk has also scared away customers and advertisers with his desire to give right-wing nutjobs a voice and increasingly erratic posts. His latest effort was to re-publish Russian fake news claiming Nato troops were dying by the thousands in Ukraine.

Over the weekend, US lawyer Lisa Bloom told the BBC she is representing about 100 former Twitter staff who have a variety of legal claims against the company, including alleged breaches of contract and discrimination. Former staff have said they were paid less compensation than was promised under Twitter’s former ownership.

One former staff member told the BBC’s Tech Tent programme that staff were previously promised four months’ pay as severance but were finally offered only one month.

Only a business genius would think that you can solve your company's debt problems by not paying the bills. 


Last modified on 07 February 2023
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