Elon Musk don’t want to pay the bills Twitter and the decision is bringing him more problems every day. Imply Dataa company that provides software services, has sued the social network because since the arrival of the tycoon has refused to pay millions of dollars of an existing contract.
As reported Bloombergthe firm accuses Twitter of breaching a multi-year bond valid until 2024 and valued at $4.4 million. The court filing came after the San Francisco, California-based company failed to pay its quarterly fee due Nov. 30.
Imply Data assures that Elon Musk not only defaulted on the payment in question, but also “waived any obligation to pay future maturities”. Thus, the software provider claims damages estimated at more than 8 million dollars. In addition, it considered that Twitter’s conduct is a clear example of its intention to not comply with its contractual commitments without just cause.
The company explained that its relationship with the social network developed on excellent terms until the arrival of Elon Musk. He also indicated that his original bond for four years, valued at more than 10 million dollars, expired in 2021, and that it was renewed until 2024 thanks to the agreement between the parties.
Elon Musk accumulates debts and enemies since his arrival on Twitter
The plan to cut expenses established by Elon Musk on Twitter has upset the spirits of the companies linked to the social network. In November, the tycoon ordered the company to suspend payments to suppliers and contractors.
The decision caused great discomfort in many of the companies, especially those that expected payment of invoices for services already provided. To such an extent that the businessman refused to pay for the transportation of some managers who were part of the company before his arrival.
In fact, last week a private jet firm sued Twitter for failing to pay $200,000 for two flights made by Leslie Berland, the former head of marketing for the social network. The striking thing about the case is that the trips were made to complete last minute procedures for the purchase of Elon Musk and had the authorization of Parag Agrawal, then CEO of the company.
Although the most notorious case is surely that of the rentals of their offices. As recently learned, Twitter has not paid rent for the buildings it occupies in different parts of the world for weeks. Among them, that of its headquarters in San Francisco. This has become a huge headache for Shorenstein Properties, the real estate company that owns the building.
Is that the company has not been able to renegotiate a loan for 400 million dollars that it took to acquire the building in 2011. And since more than half of it is occupied by Twitter, Elon Musk refusing to pay rent means a big hole in his finances.
While all of this is happening, Twitter is facing several inconveniences and questions within its own platform. The social network came under fire for ban the accounts of journalists who criticized Elon Musk, and has even blocked both the profile and the tweets with links to Mastodon, its decentralized alternative. But as if all this were not enough, he has also temporarily suspended the Spaces, after being involved in a crossroads with journalists.
