Elon Musk Refuses To Pay Twitter's Million Dollar Pending Bills Pertaining To Pre-Takeover Period

After conducting mass layoffs, Elon Musk appears to have taken another step to reduce Twitter's costs after warning of bankruptcy and cutting employee perks.

Twitter CEO Elon Musk has now refused to reimburse vendors for expenses worth "millions of dollars," which were incurred before his takeover.

NYT

This comes amid Musk¡¯s several cost-cutting measures to make Twitter more profitable and generate more cash.

Twitter Staff Avoiding Vendor Calls

According to Musk, because he did not authorise the hundred thousand dollar transactions, he is refusing to pay vendors or employees, both past and present, the New York Times reported.

As a result, the Twitter team has avoided calls from travel vendors since then. The report also mentioned that the corporate credit cards for Twitter employees have also been shut down.

According to the report, from the company's real estate and infrastructure spending to its lavish in-office cafeteria, nothing has been spared from Musk's scrutiny.

Reuters

Naturally, these "cost cuts" have evoked dissatisfaction from vendors who are owed millions of dollars in back payments.

Now it remains to be seen how long Musk can avoid paying these bills, given that he may have to pay them sooner or later, even if they were incurred before his takeover of Twitter. After acquiring Twitter in the $44 billion deal, isn't it his responsibility as CEO to take care of the company¡¯s liabilities as well?

Musk¡¯s ruthless cost-cutting measures come amidst his earlier warning to Twitter employees in his first message to them earlier this month, wherein he said that he could not rule out the possibility of Twitter going bankrupt if it does not generate more cash flow.

Also Read: Timeline Of Elon Musk-Twitter's $44 Billion Deal

Musk¡¯s Declining Wealth Amid Twitter Chaos

While Musk has been super busy revamping Twitter for nearly a month, his net worth has been plummeting more and more this year. A major reason behind this has been the bloodbath in Tesla shares this year, besides Musk selling millions of the EV maker¡¯s shares this year. Tesla shares are down more than 50% this year.

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On the other hand, in 2022, Musk has sold Tesla shares three times, first in April, then in August, and then in November.

Musk had sold over $8 billion worth of Tesla stock in April and roughly $7 billion worth in August. Earlier this month, shortly after purchasing Twitter for $ 44 billion, Musk unloaded 19.5 million shares worth at least $3.95 billion. For the first time this year, Musk's net worth fell below $ 200 billion as a result of this move. Even since then, Musk¡¯s net worth has fallen further, and he has now lost over $100 billion this year. However, Musk is still the world¡¯s richest person, with current networth of $180 billion, as per the Bloomberg Billionaire Index.

Moreover, in February of this year, it was revealed that Musk had donated roughly $5.7 billion worth of Tesla's shares to a charity. The donation of 5,044,000 shares was revealed in a filing with the US Securities and Exchange Commission (SEC). The Tesla shares were gifted last year between November 19 and November 29, 2021, according to the filing. But the name of the recipient(s) of the shares was not disclosed.

Also Read: Elon Musk Says Tesla Will Be Worth More Than Apple And Saudi Aramco

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