Twitter CEO Elon Musk is reportedly looking to raise $3 billion to offset the debt the company has recently accrued since taking over in October.
The Wall Street Journal reported on Wednesday that the company is currently $13 billion in debt, according to people familiar with the matter, and Musk said in December that he planned to sell $3 billion of his Twitter shares.
The apparent attempt to safeguard Musk’s wealth comes after the company laid off nearly 6,000 employees. The company has also been hit in the form of lawsuits filed by building management companies, which claim Twitter has violated its contract by not paying rent.
The company is facing legal complications with the Crown Estate in the UK for failing to pay its rent. Three months into his Twitter acquisition, Elon Musk is looking for additional ways to cut costs, including buying furniture, office supplies, and even an iconic blue bird statue that retailed for $100,000.
When Elon Musk completed the $44 billion buyout of the social media platform, he also acquired $1 billion in annualized interest. The Wall Street Journal reported that as Musk reaches out to new and existing investors to raise additional funding, some of them have expressed disdain and concern over Twitter’s future.
When asked on Twitter whether the Wall Street Journal report was true and if he would sell up to $3 billion in his Twitter shares, Elon Musk simply replied, “No.” Twitter has suffered a huge loss in income as nearly 500 of its top advertisers pulled back on the platform, resulting in losses of more than $4 million a day, a 40% drop in its revenue.
In November Elon Musk made a doomsday prediction saying that bankruptcy could be a possibility for the company. He later backtracked from the massive layoffs, saying he expected Twitter to break even financially in 2023.
Original Content @Yahoo News
{As Twitter’s finances are in a free fall, the CEO is looking for ways to bring money in.}