Twitter CEO Elon Musk is reportedly looking into raising $US3 ($4) billion to offset the recent debt the company has accrued since he took over in October. The company is currently $US13 ($18) billion in debt according to people familiar with the matter and said Musk said in December that he planned to sell $US3 ($4) billion in his Twitter shares, the Wall Street Journal reported on Wednesday.
Musk’s apparent endeavour to secure funds comes after approximately 6,000 employees at the company were laid off and offices around the world face uncertainty due to unpaid office space. The company was dealt a blow in the form of filed lawsuits from building management companies that claim Twitter breached its contract by not paying rent. Most recently, Twitter is facing legal implications with Crown Estate in the UK for failing to pay rent in its London office space.
Yet three months into his Twitter takeover, Musk has been finding additional ways to cut costs including selling and auctioning off furniture, office supplies, and its iconic blue bird statue, which sold for $US100,000 ($138,820). Amidst Musk’s $US44 ($61) billion buyout of the social media platform, he also acquired $US1 ($1) billion in annual interest, and despite reaching out to new and existing investors to raise new equity capital on the price tag, some expressed disdain and concern over Twitter’s future, the Wall Street Journal also reported.
When asked on Twitter if the Wall Street Journal’s report was true and if he will be selling up to $US3 ($4) billion in his Twitter shares, Musk simply responded, “No.”
Twitter has seen a substantial loss in income as 500 of its top advertisers have pulled back on the platform, resulting in a loss of more than $US4 ($6) million a day, bringing its revenue down by 40%. In November, Musk went so far as to forecast a doomsday prediction, saying that bankruptcy could be a possibility for the company. He later backtracked following the mass layoffs, saying he expects Twitter to break even financially in 2023.