Twitter Sued For Reportedly Not Paying $136,000 In Rent On Headquarters
The landlords who own Twitter’s San Francisco headquarters have sued Elon Musk after he allegedly stiffed them on thousands of dollars.
Columbia Property Trust claimed Elon Musk owed them $136,260 in rent in a lawsuit filed on Friday.
Musk has avoided paying the portion of the rent as he attempts to renegotiate the terms of the lease agreement. Musk has tried to cut costs at the company after purchasing the website for $44 billion in 2022, widely seen as one of the worst business deals of all time.
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The move follows massive layoffs, server shutdowns and administrative cuts to lower costs.
The company’s San Francisco headquarters has been downsized from four floors to two. The company has even laid off its janitorial staff, leading employees to bring their own toilet paper to work.
Musk has reportedly directed employees to pause payments to contractors.
Since Musk took over, Twitter has seen a steep drop in revenue. The company’s last public earnings filings showed it generated $5 billion in ad revenue. The New York Times reports revenue has dropped to around $1 billion since Musk’s takeover. Musk has admitted to a “massive drop” in sales.
After conducting a public poll, Musk will step down as CEO in the coming months.
Since Musk’s acquisition of Twitter, his other company, Tesla, has seen a historic drop in market valuation – as the company’s shares were used to leverage Musk’s purchase of Twitter.
With both companies losing value, Musk is reported to have lost over $200 billion in the past year.
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