Twitter pays no rent for a Crown-owned London office. In fact, the new CEO has had all of the company’s offices free since December.
The second richest man in the world does not pay rent, even to the leader of the United Kingdom. And so Charles III filed a complaint against Twitter, Elon Musk’s company. But with Corona, it’s just the latest in a long line of creditors appealing to Musk’s wallet.
The CEO has already been sued for other offices he decided to occupy for free. The move is part of a larger plan: trying to recoup the $44 billion paid to buy the platform. To keep everyone together, Musk also held an auction to sell chairs, computers and Twitter icons.
The Cause of the English Crown
The Crown Estate, which manages the British royal family’s property portfolio, has taken Twitter to court, claiming billionaire Elon Musk’s company has failed to pay rent for its London office in recent months. .
Twitter moved to offices in London’s West End in 2011, the lawsuit in London’s High Court explains. The building has now been stripped of all Twitter logos, but the company still occupies the headquarters, according to the Daily Telegraph. This is the fourth lawsuit against Twitter for alleged nonpayment of rent, a strategy by Musk to cut costs through high-profile financial battles.
The news comes after the owner of Twitter’s San Francisco headquarters sued the social media company for $6.8 million, allegedly for not paying December and January rent. But the mechanism seems to be imitated almost everywhere. In fact, as the New York Times explained, Twitter did not pay the rent for all of its offices. In addition to the California Street building in downtown San Francisco, Elon Musk is also being sued for non-payment of seats in Seattle. Twitter also refused to pay a $197,725 bill for private charter flights flown during the week of Musk’s hiring, reads a copy of the lawsuit filed in New Hampshire District Court and obtained by the New York Times. .
The plan to get the money back
Musk’s aggressive moves show how he is trying to break past agreements with Twitter. In fact, he gave the order not to pay rent for the place, hoping to renegotiate a lower price with the owners.
In addition to not paying rent, Musk fired half of the company’s 7,500 employees, including the head of its platform’s misinformation policy. The dangerous cuts, especially in the industry moderating content on the platform, have also raised concerns among advertisers who have removed their content from the platform.
Since early November, Twitter’s new CEO, along with his supervisors, has sought to save about $500 million, according to an internal document seen by The New York Times. Additionally, Twitter’s surviving executives were forced into “zero-based budgeting,” a method that evaluates an organization’s needs and costs from a “zero base,” meaning no allocation of funds. at the beginning of each period.
In the big fund stimulus plan put in place by Musk, there is also an auction of Twitter relics. In fact, the company sold part of its “furniture”, including the emblematic statue of the Twitter bird, symbol of the company’s headquarters in San Francisco, which was sold for 100,000 dollars.
All of Elon Musk’s lawyers
When Musk joined Twitter, he had a cast of legal professionals by his side. In October, however, he fired Twitter’s chief legal officer and general counsel “for cause” and appointed his personal attorney, Alex Spiro, to lead the company’s legal and policy affairs. According to some rumors that emerged from the team, Spiro was also fired following some decisions that did not satisfy Musk, such as the retention of Twitter’s assistant general counsel, James A. Baker. Now Musk has changed tack and is turning to lawyers from other companies like SpaceX, who are likely to face all the unpaid rent lawsuits.