Elon Musk Says Twitter Could Go Bankrupt as Top Executives and Advertisers Flee

CARINA JOHANSEN/NTB/AFP via Getty Images

Twitter owner Elon Musk has said that the social media company could go bankrupt.

This bombshell revelation comes as top Twitter executives and advertisers flee.

“There’s a massive negative cash flow, and bankruptcy is not out of the question,” said Musk at a Thursday meeting, according to a recording heard by The New York Times.

Upon taking over Twitter on Oct. 27, Musk fired CEO Parag Agrawal; CFO Ned Segal; legal policy, trust and safety head Vijaya Gadde; and general counsel Sean Edgett. On Thursday, Yoel Roth, the head of trust and safety, and privacy officer Damien Kieran, and chief compliance officer Marianne Fogarty and chief information security officer Lea Kissner quit the company. Moreover, chief marketing officer Leslie Berland and vice president JP Maheu also left Twitter. Last week included the first round of layoffs in the estimated 7,500-person workforce.

Recently, Musk flew to New York and, according to the Times:

In some advertiser meetings, Mr. Musk proposed a system for Twitter users to choose the kind of content that the service exposed them to — akin to G to NC-17 movie ratings — implying that brands could then target their advertising on the platform better. He also committed to product improvements and more personalization for users and ads, two people with knowledge of the discussions said.
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Brands including Volkswagen Group, General Motors and United Airlines have said they will pause advertising on Twitter as they evaluate Mr. Musk’s ownership of the platform.