Elon Musk admitted in a closed-door meeting with Twitter’s C-suite executives that he feels “humiliated” by the social media platform’s upcoming bankruptcy
We’re out of money and there’s nothing I can do about it.
Elon Musk
What sank Twitter?
Economists and financial analysts point to Elon Musk’s disastrous decision to buy the archaic social media platform Friendster earlier this year as the precipitating event that destroyed Twitter. Even though it was one of the leading companies at one time, Friendster lost followers and revenue to its competition.
Friendster’s rising star was not meant to last. Due to inept leadership at Friendster and a lack of innovation, it fell behind Facebook. In 2011 the company attempted to rebrand it as a gaming platform. Ultimately nothing could save the site.
Seeing that the brand is so cheap those close to Musk believe it’s a genius move to buy it and then force overworked Twitter engineers to build the new site from scratch. “We don’t know what the new Friendster is going to look like, but we expect it to be a free speech zone where Musk’s voice is the loudest and his critics aren’t welcome,” said one Musk confidante.
Musk couldn’t help himself after seeing the cheap price tag. He thought he could resuscitate Friendster as he was doing to Twitter.
It was all a pipedream.
Tweets aren’t cash
Musk bought Twitter on October 27th, 2022 for $44 billion. Within a week 1.3 million users left the platform.
More disasters harried the new CEO. In December of 2022, a bedbug infestation ravaged the social media’s offices due to Musk forcing engineers to sleep at work.
I had these red itchy spots all over me,” he said. “I took a look at the bed in my office and there they were — bedbugs.
Twitter engineer Andrew Canard
Some employees tweeted about their working conditions.
Financial woes
The Guardian reported that a Musk memo in January states Twitter was worth less than half of what he paid for it.
The company’s steep devaluation follows Musk’s turbulent takeover. Several large advertisers have left the platform and a major source of funds for Musk’s purchase of the company, the investment firm Fidelity, has written down the value of its stake by 56%.
He may have been able to keep Twitter running for a longer period of time, but Elon used what capital he had in that company to purchase Friendster and staff it properly.
Many saw the writing on the wall. It was only a matter of time before Musk would have to cut his losses and let Friendster and Twitter die.
Chapter 11 and Twitter
What many did not see coming was Musk’s complete and utter ignorance concerning Chapter 11 bankruptcy or for that matter Chapter 7 bankruptcy.
I don’t know anything about chapter 11. I haven’t read chapters 1-10.
Elon Musk
Chapter 11 of the United States Bankruptcy Code allows companies to reorganize themselves in order to pay their creditors. Companies can be in Chapter 11 and leave it healthy. However, Chapter 7 allows governs the process of the liquidation of a company. In such a case assets are sold off and the company ceases to exist.
Financial analysts believe that Twitter will file for Chapter 11 within days. A judge will listen to creditors and determine whether or not the business is salvageable or whether it should go into Chapter 7 and be dissolved.
Las Vegas odds makers are predicting Twitter will eventually be dismembered and cease to operate. They are giving 50 to 1 odds that Twitter will go the way of the Dodo Bird.
Employees search for new jobs
CNBC reported there are approximately 1,300 people still working at Twitter. Musk states there are about 2,300 active workers. Regardless of the exact number, sources say everyone there is aware the ship is sinking and that ship’s name is The Twitter-tanic.
I have less than twenty people working on my trust and safety team. I hear they’re all leaving to work for OnlyFans.
– Trust and Safety Team Director Max Hall
Some believe Musk’s plan was to destroy Twitter from the beginning. After all, it was one of the “woke” social media platforms he ranted about. What better way of furthering the billionaire-oligarch-Republican agenda than to silence dissenting voices?
Still, it’s more than likely Musk simply got himself into a situation he just couldn’t get himself out of. After agreeing to buy Twitter, he tried to get out of the deal and was forced to buy it. And now he’s made a mess of everything.
It’s a tough time to be looking for a job in tech. Major companies are firing and not hiring IT professionals. However, at least one Twitter soon-to-be ex-employee is sanguine about his future. “Even if I have to dig ditches it’ll be better than getting eaten alive by bedbugs after working a 16-hour shift.”
In related news, Pope Francis officially saints a Pembroke Welsh Corgi.
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