News: 1672753505

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Elon Musk's cost-cutting campaign at Twitter extended to not paying rent, claims landlord

(2023/01/03)


While we all enjoyed a brief holiday season of not having to think about Twitter or its new owner, one landlord has alleged that Elon Musk's cost-cutting campaign at the company has extended to not paying rent.

According to a [1]lawsuit [PDF] filed by Columbia Property Trust, which owns the office tower at 650 California Street in San Francisco, where Twitter rents the 30th floor, the social media platform owes it an estimated sum of $136,260.00.

Included in the filing is the default notice, sent on December 16, which warns Twitter to pay the outstanding balance within five business days or face the property owner's wrath.

[2]

With the lawsuit at the Superior Court of California for the County of San Francisco dated December 29, it's fair to guess the bill wasn't settled. We've asked but likely won't receive a response, as [3]Twitter's press office has been eliminated.

[4]

[5]

The New York Times last month [6]claimed that Twitter had not paid rent for any of its global offices in weeks, according to "three people close to the company," and simply "refused" to pay a $197,725 bill for private charter flights made in the week of Musk's October takeover, for which it has also been [7]sued .

[8]Stolen info on 400m+ Twitter accounts seemingly up for sale

[9]Elon Musk to step down as Twitter CEO: Help us pick his replacement

[10]Elon Musk starts poll with one question: Should I step down as head of Twitter?

[11]Twitter will lose 32 million users by end of 2024, Insider Intelligence predicts

It has been [12]suggested that Musk holds that such services were authorized by former management, not him, so he's not paying. "His staff have since avoided the calls of the travel vendors," the NYT claimed.

These sums are drops in the ocean if Twitter [13]is losing $4 million a day , as Musk claimed in November as justification for letting thousands of workers go. The company's legal team has also been revamped and employees have reportedly been instructed not to pay vendors in anticipation of potential litigation.

Potential litigation which is now starting to trickle down.

[14]

"Hope you're having a great day 1 2023!" the Chief Twit tweeted on New Year's Day. "One thing's for sure, it won't be boring." ®

Get our [15]Tech Resources



[1] https://regmedia.co.uk/2023/01/03/twitterleasebreach.pdf

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y7RfMeZp0DIfHGWv69DM8gAAABU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://www.prweek.com/article/1804298/mass-layoffs-twitter-ravage-comms-team

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y7RfMeZp0DIfHGWv69DM8gAAABU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y7RfMeZp0DIfHGWv69DM8gAAABU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://www.nytimes.com/2022/12/13/technology/elon-musk-twitter-shakeup.html

[7] https://www.nhbr.com/seabrook-private-jet-firm-sues-twitter-over-failure-to-pay-for-flight-services/

[8] https://www.theregister.com/2022/12/27/twitter_hack_morgan/

[9] https://www.theregister.com/2022/12/21/musk_quits_as_twitter_ceo_replacement_poll/

[10] https://www.theregister.com/2022/12/19/elon_musk_ceo_quit_poll/

[11] https://www.theregister.com/2022/12/14/twitter_to_lose_32m_users/

[12] https://www.nytimes.com/2022/11/22/technology/elon-musk-twitter-cost-cutting.html

[13] https://www.theregister.com/2022/11/09/musk_sells_nearly_4_billion/

[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y7RfMeZp0DIfHGWv69DM8gAAABU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[15] https://whitepapers.theregister.com/



Are they still paying staff salaries ?

alain williams

Of those few who remain.

Re: Are they still paying staff salaries ?

NoneSuch

I would bet the accounting staff that dealt with such trivial things like rent and power bills left for other green pastures.

Let's hope their Internet bill is up to date. :P

Re: Are they still paying staff salaries ?

Dan 55

There are complaints from people who left saying that they weren't paid compensation.

Inevutable

Pen-y-gors

Presumably he sacked the entire accounts department because they weren't cutting code.

And contracts entered into by the previous manager 's are still binding. The company hasn't changed.

Re: Inevutable

Timop

Probably the laziest possible layman's genious legal lifehack with that "these expenses were not authorised by me" there. Good luck trying to set the bar any lower.

Re: Inevutable

zuckzuckgo

Clearly the accounts payable department just failed to demonstrate a positive cash flow, more money flowing out than in. All fired. Problem solved.

As a mere mortal you just fail to see the genius of it all.

anthonyhegedus

He’s a self-obsessed narcissistic bore who thinks he’s above everything.

Twitter Turnaround

trevorde

You may have read that Twitter is no longer paying rent on its offices. This was authorised by former management, not myself personally, so we will no longer be paying.

Similarly, your salary was negotiated by former management, not myself personally, so we will no longer be paying you.

Please note that you signed up to work long hours at high intensity, so you will still be expected to work at least 80hrs per week.

Yours faithfully

Elon Musk

PS we have also stopped paying our server bills

Re: Twitter Turnaround

chivo243

PS we have also stopped paying our server bills... Because I'll be yanking the plug, personally!

Long Term Bonkers

Anonymous Coward

At a time when other Musk companies are struggling with supply issues, the last thing I'd have thought he'd need is to develop a reputation for not paying bills. Tesla in particular are vulnerable to supply problems, as they're a mass manufacturer.

I've no idea what Tesla's relationships with suppliers presently is, but they might note what Musk is like in a company when things get tight. If Tesla ever does get into a tight position, all it takes is one supplier to remember this and play a hard game with terms, and Tesla could get into real trouble. Especially as Musk's approach to business seems to be impetuous, and with little regard for long term consequences; there may be a lack of good will / mutual trust (= cash up front please). Things are very different now to the earlier days of Tesla, back when Musk Could Do No Wrong (tm).

If you wish to be a capitalist, you have to abide to capitalism rules

LDS

Which include honoring contracts even after an acquisition - you should have known what you were going to buy.

Otherwise it's just despotism.

Re: If you wish to be a capitalist, you have to abide to capitalism rules

F. Frederick Skitty

It's the classic Trump approach to business - refuse to pay bills and hope the creditors go bust before they can get you to court. Musk is just another amoral dipshit who thinks he's a business genius

Dinanziame

I'm aware that large companies sometimes fail to pay bills timely, and it's sometimes claimed that they hope the vendors will give up on the bill rather than bother with a lawsuit (could be incompetence as well!)

However, it seems the strategy can't possibly work on your landlord, because they also want to get paid in the future. And that goes double when all the media are reporting on your decision not to pay your bills...

But obviously, I'm not a billionaire, so maybe I'm just thinking too small.

Neil Barnes

How do billionaires get rich? With other people's money...

For every self-made billionaire, there's a billion people shy a buck.

Dave 126

"You didn't think I became a billionaire by writing cheques did you Homer?"

- Bill Gates to Homer Simpson, after Homer accepts an offer to be bought out and then, to his surprise, Gates' henchmen proceed to trash Homer's home office.

chivo243

Hyper-mega-global something something mmm spider pig.

Joe W

Talking to our electrician and our plumber/heating guy this is a general pattern. The private small customers pay up immediately (well, mostly), and big companies drag their feet, often needing gentle (or not so gentle) reminders to f'ing pay up already. That pattern seems to be mostly universal, as some friends working for automotive suppliers reported.

Anonymous Coward

This was how many big building firms treated their subcontractors here in the UK, along with abuse of a system called "retention". Thankfully the late payment was clamped down on by government in the 1990s, since so many people were being forced into bankruptcy.

126 page PDF to get the overdue rent?

EvaQ

A 126 page PDF to a court to get the overdue rent? That is how it works in the USA?

Where I live, a debt collector would send a letter to Renter, and would then execute a seizure.

Re: 126 page PDF to get the overdue rent?

DrXym

In fairness, if you read the PDF, the actual complaint is a few pages and the rest is just a copy of the building contract and correspondence about being in arrears.

Re: 126 page PDF to get the overdue rent?

Anonymous Coward

> correspondence about being in arrears.

As a supplier to a Musk managed company one must expect to get it in "arrears".

Re: 126 page PDF to get the overdue rent?

katrinab

You need a court order to execute the seizure surely? In England, that is the oldest surviving law still in force.

Catch 2023

ComputerSays_noAbsolutelyNo

So, Elon fires everyone who does not show up for work at the company offices.

Elon also does not pay the rent for the company offices.

So, if the landlord shuts down power/access/etc., does this result in instant-firing of the whole staff, since working from home is not permitted and the offices are shut?

Re: Catch 2023

Hans Neeson-Bumpsadese

Elon fires everyone who does not show up for work at the company offices.

Or perhaps you could look at it as Elon employs anyone who does show up at the office. This time next week he'll have a bunch of bailiffs working on refactoring some RPCs out of the mobile app

Send in the Bailifs

Steve Davies 3

and seize his personal jet. That will make him listen.

Once upon a time, I had a reasonable opinion of Elon Musk but in the last year, he has become nothing more than a MAGA numpty when it comes to managing people. Some of his tweets recently have been worthy of his leader, D.J. Trump.

His cult members are growing restless. Twitter is in their eyes an unneeded diversion. They want to see more new products from Tesla reaching production.

Re: Send in the Bailifs

DrXym

It was obvious that he was a bit of a twunt he decided to call a cave diver a "pedo" simply for laughing at his dumb device when they were trying to rescue those kids trapped in a cave.

I think he's lurched from being a libertarian to MAGA simply because he's also a narcissist and the people on the far right are the only ones feeding his ego at the moment. Too bad they're not the ones buying his cars.

Re: Send in the Bailifs

zuckzuckgo

Yes and yes!

Twitter Still Free to Use ?

NewModelArmy

Essentially Musk has purchased a company for $44bn where most people use it for free, and it is losing $4million per day.

How is Musk going to turn around this company ?

Not paying rent at the costs in the article seems to be folly as they are minimal compared to the money lost every day.

Maybe this is the end for Twitter, albeit a slow death.

The basic arithmetic shows that for 450million users, and with $4million per day being lost, then if Twitter charges $5 per year for every user, that covers all the losses with some spare.

Maybe that is low enough for people to just pay and save Twitter ?

Re: Twitter Still Free to Use ?

Joe W

Those daily losses come from the debt EM forced upon twitter. He bought it with their own debt, which to me sounds crazy, but seems to be the norm (he did not invent that spiel).

Re: Twitter Still Free to Use ?

Andy 73

It wouldn't be saving Twitter though, would it? It would be saving Musk, who'd then have carte blanche to do whatever he wants with Twitter.

Those two things are not the same.

Re: Twitter Still Free to Use ?

DrXym

The answer is he's not going to turn it around. He's taken on heavy debts and advertisers have run for the hills. Meanwhile Mastodon & other social media services are growing and some major contributors are leaving or ready to leave. Meanwhile Musk is committing one unforced blunder after another and his personal wealth is tanking.

At some point those loans are going to be called in and he'll be gone, leaving this disaster behind. The irony is that whoever takes over probably has a better chance of stabilizing the business without Musk in the way.

Re: Twitter Still Free to Use ?

Julian 8

200m robots won't have $5 each

Re: Twitter Still Free to Use ?

zuckzuckgo

> How is Musk going to turn around this company ?

Use Twitter to do a reverse takeover of SpaceX. SpaceX borders on bankrupcy. Get government bailout to ensure access to International Space Station and continued operation of Starlink in Ukraine.

Sarcasm, I hope.

If...

Andy 73

As a landlord, if Musk believes he can just stop paying rent "because".. I'd tend to believe I can change the locks and turn of the power supply "because".

Re: If...

Flocke Kroes

Listen to your lawyer first. There are usually some hoops you have to jump through before you can take that sort of action. The good news is that Musk's favourite lawyer thinks he can win in the court of public opinion - which is unlikely to be the venue specified in any sane contract.

Cloud

elsergiovolador

Maybe he got confused. Isn't Twitter supposed to be in the cloud? Do clouds pay rent?

Also, he fired the cleaners, employees are bringing in toilet paper, and the office literally stinks

Howard Sway

[1] one result has been the smell of leftover takeout food and body odor lingering in the air. What’s more, the bathrooms have become dirtier, and some employees have resorted to bringing their own rolls of toilet paper to work.

I suppose thinking "why bother cleaning it when we're going to get kicked out" is one possible explanation for the mucky musk midden.

[1] https://fortune.com/2022/12/30/twitter-employees-bring-own-toilet-paper-as-elon-musk-keeps-cutting-costs/

Hit them biscuits with another touch of gravy,
Burn that sausage just a match or two more done.
Pour my black old coffee longer,
While that smell is gettin' stronger
A semi-meal ain't nuthin' much to want.

Loan me ten, I got a feelin' it'll save me,
With an ornery soul who don't shoot pool for fun,
If that coat'll fit you're wearin',
The Lord'll bless your sharin'
A semi-friend ain't nuthin' much to want.

And let me halfway fall in love,
For part of a lonely night,
With a semi-pretty woman in my arms.
Yes, I could halfway fall in deep--
Into a snugglin', lovin' heap,
With a semi-pretty woman in my arms.
-- Elroy Blunt