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Will Twitter go bankrupt?


tede02
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Will Twitter go bankrupt?  

54 members have voted

  1. 1. Will Twitter go bankrupt?

    • Yes
      3
    • Likely
      16
    • Unlikely
      20
    • No
      15

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  • Poll closed on 12/24/2022 at 08:31 AM

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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.

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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.

 

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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

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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.

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