Elon Musk Warning: Why Twitter Could Go Bankrupt

Elon Musk called out an all-hands meeting Thursday and informed everyone about the future of the social media company.

It is roughly two weeks since the billionaire acquired Twitter for $44 billion. So, is Twitter going bankrupt?

According to Musk, "bankruptcy isn't out of the question" if they cannot improve the company's current financial difficulties, Independent reported.

According to reports, both Twitter's director of trust and safety and the firm's interim head of advertising have departed the company. Yoel Roth and Robin Wheeler have been members of Musk's leadership team since his appointment.

They took part in a Twitter discussion aimed at calming down advertisers on Wednesday. Musk, the world's richest person and the owner of the electric car firm Tesla, has chaotically operated the company since acquiring it.

He had already fired half of the employees and made modifications to subscription services and verification that were immediately reversed.

After allowing anyone to purchase a "confirmed" blue tick for $8 per month, the site was inundated with fake profiles posing as world leaders and corporations. A verified Nintendo account tweeted an obscene photo of Mario, while a spoof account purporting to be former President George W. Bush said he "miss[es] killing Iraqis."

Some firms have stopped advertising on the platform because of the uncertainty around verification and fake accounts.

Is Twitter Going Bankrupt? Elon Musk Tries to Calm Advertisers Following Check Mark Issues

The new verification mechanism that Twitter is implementing is a disaster. Twitter began adding grey check marks and the term "official" to the profiles of well-known persons on Wednesday.

According to CNET, some of the adjustments, though, were reversed a few hours later.

Musk said that the new labels are an "aesthetic nightmare when looking at the Twitter feed" and "another way of creating a two-class system " in an hour-long live audio chat on Twitter later that day.

Esther Crawford, Twitter's head of early-stage products, stated on Twitter that the "official" label would still be applied, but only to government and business entities.

Musk discussed Twitter's plans for a content moderation council, as well as corporations' intentions to temporarily halt their Twitter advertising campaigns, during the audio chat.

"I don't think having hate speech next to an ad is great. Obviously," he said.

Musk also stated that he believes it will take Twitter a few months to establish a council to govern material on the platform. However, he stated unequivocally that he has no intention of slowing down when it comes to making changes to Twitter.

"The rate of evolution of Twitter will be an immense step change compared to what it has been in the past," he said. "You know, if nothing else, I am a technologist and I can make technology go fast."

Elon Musk Twitter Could Be at Risk for Billions in Fines

An internal attorney stated on the firm's Slack that engineers may take on the "personal, professional, and legal risk" that the company was facing.

Twitter was moving rapidly to implement Musk's suggestions. Part of the reason for this is a 2011 agreement the business reached with the Federal Trade Commission.

The agreement gives the FTC authority over the company's data security methods, and any infractions might result in fines in the hundreds of millions, if not billions, of dollars, IGN noted.

According to a Federal Trade Commission rep, they are "tracking recent development at Twitter with deep concern."

This article is owned by Latin Post.

Written by: Bert Hoover

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