tede02 Posted December 19, 2022 Share Posted December 19, 2022 This whole thing has simply been entertaining to follow. It can't be good if Musk is already looking to raise money and polling whether he should step down. Link to comment Share on other sites More sharing options...
ValueArb Posted December 21, 2022 Share Posted December 21, 2022 Twitter can't go bankrupt. Elon isn't going to throw away $44B by refusing to put a couple billion more in every so often to keep it afloat. Plus burn rate has to be dramatically lower given no one even works there anymore. Elon will find a face saving way to step away and have someone else run it at roughly cash flow break-even until he can find someone to buy it (the Saudis?) for $20B or so. Link to comment Share on other sites More sharing options...
LC Posted December 21, 2022 Share Posted December 21, 2022 Elon is going to have to make some real promises to get someone to take this off his hands. Hope his hair plugs are in tight. Link to comment Share on other sites More sharing options...
rkbabang Posted December 21, 2022 Share Posted December 21, 2022 Twitter isn't going bankrupt. He's going to cut expenses to the bone and keep it running. He won't make his money back and it won't ever be thought of as a great investment for him. But there is no reason he can't keep it as a going concern. Twitter was mismanaged from the start and Musk vastly overpaid for it. None of that means it will go bankrupt. Link to comment Share on other sites More sharing options...
formthirteen Posted December 21, 2022 Share Posted December 21, 2022 (edited) Elon said in a Spaces chat that he expects the company to be break-even next year. Without the layoffs he said they would have lost $3-4B, with $1B in cash that w0uld have meant bankruptcy, if I remember correctly... Edited December 21, 2022 by formthirteen Link to comment Share on other sites More sharing options...
Castanza Posted December 21, 2022 Share Posted December 21, 2022 Twitter should just make you verify with a ID or Drivers License to sign up for an account and call it a day. Link to comment Share on other sites More sharing options...
Guest Posted December 21, 2022 Share Posted December 21, 2022 1 hour ago, rkbabang said: Twitter isn't going bankrupt. He's going to cut expenses to the bone and keep it running. He won't make his money back and it won't ever be thought of as a great investment for him. But there is no reason he can't keep it as a going concern. Twitter was mismanaged from the start and Musk vastly overpaid for it. None of that means it will go bankrupt. +1 Link to comment Share on other sites More sharing options...
Gregmal Posted December 21, 2022 Share Posted December 21, 2022 Wasn't twitter going to shut down a few weeks ago or were we lied to again? Link to comment Share on other sites More sharing options...
Santayana Posted December 21, 2022 Share Posted December 21, 2022 Maybe he can get Trump to take the CEO job. Link to comment Share on other sites More sharing options...
ValueArb Posted December 22, 2022 Share Posted December 22, 2022 Twitter lost $100M the last 12 months on a GAAP basis. It's negative FCF was much higher, $800M, but as of June 30 had $6B in cash and cash equivalents with no short term debt. While I'm sure revenues have taken a steep decline, costs should be down by at least 50% since they are primarily headcount. I think Elon is a drama queen who loves to make employees think their back is against the wall because he believes it will motivate them. Link to comment Share on other sites More sharing options...
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