Elon Musk has reportedly stopped paying rent for office space since he took over as Twitter owner in October 2022, following which several landlords have taken the social media company to court.
KKR and Co., an affiliate of 1330 Broadway, in a $1.3 million lawsuit, alleged that the social media giant has not paid rent for its office in its Oakland, California, building since November 2022.
‘Let them sue’: Elon Musk reportedly said over unpaid rent
On March 17, Financial Times reported that in his effort to cut costs at Twitter, Elon Musk reportedly told a former Twitter executive worried about unpaid bills to “let them sue”.
“Elon would always say ‘Let them sue’, it was a constant refrain,” one former senior staffer who was let go by Twitter in its latest staff-cut move told Financial Times. “It’s all very short-term thinking,” it added.
Last month, the Wall Street Journal estimated that the total money sought in all the Twitter lawsuits, by landlords and vendors alike, is $14 million. While it may appear like a paltry sum for a company just purchased for $44 billion and still valued at $20 billion, Musk’s “let them sue” approach amid social media company’s ongoing cost-cutting measures remains in the spotlight.
ALSO WATCH | Gravitas: Twitter’s quirky signage up for sale
Stephen L. Carter, a professor of Law at Yale University wrote in Bloomberg that Musk is withholding payment as a likely move in what is known among schools as the “holdup game”— an opportunistic effort to force better terms from a counterparty who’s poorly positioned to resist your demands.
“Perhaps Musk is simply displaying his trademark optimism, and plans to catch up on payments, with interest, once advertisers return to Twitter — an event whose occurrence he keeps predicting,” Carter added.
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.
For all the latest business News Click Here
