Elon Musk Pulls One Of The Dirtiest Tricks In The Book

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r 1 cities are on the brink of a massive correction. Hybrid and remote work have reduced demand for office space, and Musk knew that Twitter’s current rent is above market.Breaking the leases would cost too much, but simply not paying rent would bring landlords to the negotiation table or court. While the landlords choose court, they have no guarantee of payment given Twitter’s risk of bankruptcy, and a judgment in their favor would take months to process. One of the landlords has already defaulted.Ev

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en if the landlords win back rent, interest, and legal fees, Musk owes $1.2 billion annually on the$ 13 billion loan he took out to buy Twitter. That interest rate is higher than anything the courts would force him to pay on back rent.Musk had to prioritize cost of capital, as a little FU to the landlord at the headquarters at 1355 Market Street. Elon painted the W on the Twitter sign white.Visit our blog at <a href="http://www.TheWetWhale.com">http://www.TheWetWhale.com</a></article></body>

Elon Musk Pulls One Of The Dirtiest Tricks In The Book

Elon Musk pulled one of the dirtiest real estate tricks in the book after acquiring Twitter. He stopped paying rent. Twitter skipped over $7 million in rent payments in San Francisco and London, but it was actually a strategically sound business move.

Office real estate in Tier 1 cities are on the brink of a massive correction. Hybrid and remote work have reduced demand for office space, and Musk knew that Twitter’s current rent is above market.

Breaking the leases would cost too much, but simply not paying rent would bring landlords to the negotiation table or court. While the landlords choose court, they have no guarantee of payment given Twitter’s risk of bankruptcy, and a judgment in their favor would take months to process. One of the landlords has already defaulted.

Even if the landlords win back rent, interest, and legal fees, Musk owes $1.2 billion annually on the $13 billion loan he took out to buy Twitter. That interest rate is higher than anything the courts would force him to pay on back rent.

Musk had to prioritize cost of capital, as a little FU to the landlord at the headquarters at 1355 Market Street. Elon painted the W on the Twitter sign white.