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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

#21

Post by 33955985 »

whiddershins wrote: post #15

None 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.

> Businesses do lots of stuff to negotiate and renegotiate and bully / squeeze / etc. each other.

The United States elected a President who bragged about doing exactly this, so it’s a little odd that it appears unfamiliar to most here.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#22

Post by vlovich123 »

kibwen wrote: post #16
MrMan wrote: post #6

it 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.

Bezos is selling off tens of billions of Amazon stock a year. Amazon stock doesn’t seem to be reacting to it.

I don’t think the market reacted so much to Musk vs the fact that Tesla selling prices have plummeted because it turns out they’ve saturated their market (but until then people believed in the hockey stick growth). It was obviously ridiculous because secondary market sales higher than direct sales cannot be sustained for very long (it indicates you can’t meet supply, but there’s obviously not an infinite amount of supply at the higher price point). That + the collapse of most stocks would account for most of the drop I think. There’s possibly some amount of knock on effect of Musk’s advertised Twitter problems creating a PR problem for him in terms of can he focus on Tesla, Twitter and SpaceX properly. There’s only so many drugs you can take to help you with that.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#23

Post by jeffbee »

mikequinlan wrote: post #14
GavinMcG wrote: post #13

Earlier quoted context omitted.

What would "strong rights" look like? They can pursue violations of contracts, as this landlord is doing.

I think 'strong rights' would be the right to quickly forcibly evict a non-paying renter.

Commercial landlords have all the rights they need in that regard. It’s a contract dispute and a court will order remedies like any other contract dispute. You don’t want to give landlords unilateral powers to interpret and enforce contracts. That would be pretty dumb.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#24

Post by joegahona »

> Twitter hasn’t paid rent on its headquarters, or any of its other global offices, in weeks, the New York Times reported on Dec. 13.

Isn’t rent paid once per month? When I was a renter, this could’ve been said about me literally every month, once two weeks had elapsed between payments.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#25

Post by nostrademons »

romellem wrote: post #2

Is the calculation just that the cost of litigation will be less than the full contract lease? I don’t understand how that could work.

Litigation takes years to play out, paying the lease would result in bankruptcy imminently. Plan is to live another day, long enough to stabilize finances, and then unload it on the public markets where the litigation becomes somebody else's problem.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#26

Post by nostrademons »

tonystubblebine wrote: post #7
naveen99 wrote: post #5

Earlier quoted context omitted.

Twitter could just declare bankruptcy and restructure.

I agree this is where things are headed. Is it a sure thing that Elon maintains control in a restructuring?

Usually not. Typically in a bankruptcy the debtholders become the new shareholders and then replace existing management with ones more friendly to their interests.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#27

Post by gdpr2022ap »

joegahona wrote: post #24

> Twitter hasn’t paid rent on its headquarters, or any of its other global offices, in weeks, the New York Times reported on Dec. 13. Isn’t rent paid once per month? When I was a renter, this could’ve been said about me literally every month, once two weeks had elapsed between payments.

[dead]

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#28

Post by jeffbee »

Bilal_io wrote: post #18
whiddershins wrote: post #15

None 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)

I don’t know why anyone would think otherwise, but a mediator will simply advise Twitter that they are required to pay the rent. There isn’t a negotiating tactic here that would actually work. A court would order them to pay and damage and costs and fees too.

Short of bankruptcy Twitter or any organization is required to perform their end of contracts.

Re: Twitter Sued for Nonpayment of Rent on San Francisco Office

#30

Post by [deleted] »

joegahona wrote: post #24

> Twitter hasn’t paid rent on its headquarters, or any of its other global offices, in weeks, the New York Times reported on Dec. 13. Isn’t rent paid once per month? When I was a renter, this could’ve been said about me literally every month, once two weeks had elapsed between payments.

[deleted]
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