According to multiple sources, Twitter has stopped paying the rent on some of its office leases and has not paid numerous other vendors since Elon Musk acquired the company in late October.
Twitter has not paid rent for its global offices or San Francisco headquarters in weeks, as Mr. Musk’s team has been trying to renegotiate the terms of the company’s lease, as reported by The New York Times. As a result, Twitter has received complaints from real estate firms like Shorenstein, which owns Twitter’s San Francisco buildings.
Mr. Musk claimed that Twitter experienced a “massive drop in revenue” in the days following his $US44 billion purchase of the company. He claimed in a tweet, without providing any figures or evidence, that the revenue drop was the result of activist groups putting pressure on advertisers.
Despite the fact that many companies have stopped advertising on Twitter, some major advertising conglomerates, such as Apple and Amazon, have resumed spending on the platform. Mr. Musk has also revamped Twitter Blue, the company’s subscription service, in the hopes of generating new revenue. After Musk pulled and delayed the launch in November, the service went live on Monday.
Twitter Blue costs $US8 per month for web users and $US11 per month for iOS users who download it from Apple’s App Store. Mr Musk’s recent complaints about Apple’s 30% cut of all digital sales made through apps are reflected in the $US3 price difference.
Subscribers with a verified phone number will see a blue checkmark once their account is reviewed and approved, according to a tweet from Twitter on Saturday. Blue users will also have the ability to edit tweets and will have first access to new features. According to the company, Blue subscribers will “soon” see fewer ads, will be able to post longer videos and will be at the top of replies and mentions.
Mr. Musk has been a vocal critic of Twitter’s previous system, which granted verification to notable users such as politicians, executives, members of the press, and organizations in order to demonstrate their legitimacy. He claims that the new verification system will be “the great leveler” and give the people “power.”