Many companies did this during the pandemic- landlords don’t have strong rights.
Twitter Sued for Nonpayment of Rent on San Francisco Office
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Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#12Alternate URL (still bloomberg, via yahoo): https://www.yahoo.com/now/twitter-sued-nonpayment-rent-san-0...
> Read more: Twitter’s Skipped Lease Payments Hit Bonds Tied to Headquarters
the Read More link (still bloomberg, via yahoo): https://news.yahoo.com/twitters-cost-cutting-efforts-hitting...
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#13Many companies did this during the pandemic- landlords don’t have strong rights.
What would "strong rights" look like? They can pursue violations of contracts, as this landlord is doing.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#14Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#15None of this is as interesting as most people seem to think.
Businesses do lots of stuff to negotiate and renegotiate and bully / squeeze / etc. each other.
It will likely be worked out without the lawsuit actually making its way through the court system.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#16it should be easy to recapitalize Twitter using sales of Tesla stock, so I cant believe its an actual shortage of cash. Probably trying to game the litigation cycle and pay at the very last minute? But to what end, it seems like a doomed game to play, you either have money coming in or you dont.
Tesla stock is down 69% (yes, really) over the past 12 months, and part of what's triggering the price collapse is Musk's own sell-off. When a CEO divests from their company, markets historically do not react with confidence. The more Elon Musk sells, the less value he has and the more stock he'll have to sell the next time that he wants to leverage his wealth to buy something pointless.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#17Seems HN is does not have expertise in this and who holds the cards in the current market in SF.
The lease previously negotiated by the past regime has little relevance as Twitter is currently occupying less than 50% of the floor space.
The landlord has to either accept lower payment, or look for a new tenant and Twitter moves to Austin. Given the current environment in SF, it's likely a new tenant won't be found for years.
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#18None of this is as interesting as most people seem to think. Businesses do lots of stuff to negotiate and renegotiate and bully / squeeze / etc. each other. It will likely be worked out without the lawsuit actually making its way through the court system.
The case doesn't need to be interesting to warrant highlighting. Musk is the person of interest here.
Also, lawsuits are usually a method to force the other party to sit and talk. As an example, Texas law requires mediation before being able to see a judge, including things like divorce. I've heard that between 70% to 80% of cases get settled in mediation (not sure if this statistic is specific to Texas or not)
Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#19Re: Twitter Sued for Nonpayment of Rent on San Francisco Office
#20Seems HN is does not have expertise in this and who holds the cards in the current market in SF. The lease previously negotiated by the past regime has little relevance as Twitter is currently occupying less than 50% of the floor space. The landlord has to either accept lower payment, or look for a new tenant and Twitter moves to Austin. Given the current environment in SF, it's likely a new tenant won't be found for…
That's cool. That doesn't excuse squatting, and a good faith effort requires reconvening at the negotiating table to formulate new terms; not just ghosting and coasting until the landlord engages in litigation, or holding somebody else over a barrel.