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Elon Musk sued for failing to pay rent for Twitter offices in London, San Francisco

Elon Musk sued for failing to pay rent for Twitter offices in London, San Francisco

Twitter was taken over by Elon Musk, the co-owner of Tesla and SpaceX, in October of last year. He paid $44 billion for the platform and quickly initiated sweeping job cuts.

Story highlights
  • Twitter has now been sued for not paying rent in San Francisco and London.
  • The landlords have taken legal action against Twitter in both San Francisco and London for failing to pay rent on its offices.
  • Twitter owed 136-260 dollars in overdue rent on a separate office in San Francisco and was facing a lawsuit. 

Twitter is marred with controversies as now the social media giant has been sued for not paying rent. The landlords have taken legal action against Twitter in both San Francisco and London for failing to pay rent on its offices. The incident came into light after Twitter employees were shown the door of its Singapore office because the company failed to pay the rent. Things have been going downhill for the social media company, ever since Musk became the new owner of the company.

As per a BBC report, the Crown Estate in London, which manages property belonging to King Charles III, filed a claim against Twitter in the High Court in London last week. The report states that Twitter had rented an office space near Piccadilly Circus in central London. The owner of Twitter's San Francisco headquarters has also sued Twitter after it failed to make its latest monthly rent payment for January, amounting to 3.4 million dollars. London is not the only place where Twitter has failed to pay the rent in San Francisco. A report previously stated that Twitter owed 136-260 dollars in overdue rent on a separate office in San Francisco and was facing a lawsuit.

The developments took place months after Elon Musk, the co-owner of Tesla and SpaceX, took over Twitter in October last year. Musk paid $44bn for the platform and quickly initiated sweeping job cuts to the firm's 7,000-strong workforce, cutting it by 50%. Musk's takeover has not been without issues, including a chaotic relaunch of the blue tick scheme for verified users that led to a number of impersonator accounts and advertisers withdrawing from the platform over concerns about a rise in hate speech.

The social media company was reportedly hit by a 40 per cent drop in revenue after more than 500 clients paused their spending, with high-profile brands such as Audi and Pfizer halting advertising. The BBC reported that the Crown Estate took legal action after previously contacting the social media company about the alleged rental arrears at its office space. A solicitor and director at the London-based law firm Ridgemont, John Wallace, said the hearing between the Crown Estate and Twitter was likely to take place in the next six months and warned that the UK's struggling economy could lead to an increase in rent arrears claims.

In light of these legal actions and the struggling economy, it remains to be seen how Twitter will respond and if it will be able to resolve these issues with its landlords. It also raises questions about the cost-cutting strategies being implemented by new owner Elon Musk and the potential impact on the company's financial stability. Additionally, it is unclear if this is an indication of a larger financial problem at Twitter, or if it is an isolated incident.
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Published on: Jan 25, 2023, 9:15 AM IST
Posted by: BT Siteadmin, Jan 25, 2023, 9:14 AM IST