Technology Debts accumulate on Twitter under the command of Elon Musk: the company...

Debts accumulate on Twitter under the command of Elon Musk: the company adds 6 lawsuits for non-payment

It’s been 4 months since Elon Musk entered —toilet in hand— the offices of Twitter for the first time and took control of the social network. Since then, to the company that he bought for 44,000 million dollars Demands for non-payment accumulate.

Since October of last year, up to 6 different companies have sued Twitter, according to PlainSite, a platform that tracks the social network’s debts to third-party companies and depends on Think Computer Corporation, a company software specialized in improving the transparency of the judicial system.

Twitter’s debts range from the landlord of its San Francisco offices to an event planning company.

According to data collected by Plainsite, the latest lawsuit was filed by Writer, a Delaware-based company that requires the social network to pay $113,856 (around 106,000 euros).

According to the demand to which you have had access Business Insider Spainthe social network would have breached the contract by not having paid on time for the text correction services that the platform offered to Twitter employees.

In addition to this demand, the medium fortune Twitter first reported late rent payments to offices in San Francisco. This has meant, according to the American media, that the owner of the buildings where the social network has its headquarters has not been able to pay a series of loans that it had pending.

In the lawsuit filed last December by Columbia REIT against Twitter, to which he has had access Business Insider Spain, the company that owns the building demands the payment of $136,260 from the technology company (around 128,000 euros), for not having paid the monthly rent.

In addition to these demands, Platformer reported exclusively that this week, Twitter employees found themselves unable to connect to Slack, the work tool similar to Microsoft Teams, because the company had allegedly stopped paying for the services of this system, owned by Salesforce.

Among the debts Twitter accumulates are those already mentioned, as well as a provider of private jet transportation services, an event planning and production company called Blueprint Studios Trends, a mergers and acquisitions consulting firm, and another company that provided litigation-related consulting services to Twitter and its lawyers before Musk bought the company.

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All these news have called into question the financial health of the social network. According to several experts consulted by the CNBCnon-payment to suppliers can be an alert sign, in a company with a low cash flow and that was acquired with a 30% payment issued in debt.

Josh T. White, a former SEC (US Securities and Exchange Commission) economist, has assured the US media that these defaults may be due to an “incorrect and aggressive capital structure.” “Non-payment and contract violations are certainly a red flag that the company is probably in financial trouble.”has pointed out the expert.

Twitter, under the command of Elon Musk, has carried out a major restructuring of the company on a global level and is trying to reduce costs at all costs. Since the billionaire became owner, nearly 3,000 people have been laid off from the company.

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