I mean, define 'last'. Myspace.com still goes, well, somewhere.
How Much Longer Can Twitter Last, Really?
61–65 of 65 posts
Re: How Much Longer Can Twitter Last, Really?
#62Earlier quoted context omitted.
Elon/Twitter stories get clicks in part because of the "how's he going to get out of this one!?" factor. As the article points out, Twitter's financial numbers and upcoming liabilities don't look good. This is not subjective; Twitter is in bad fiscal shape. In some ways Elon walked the same knife's edge with Tesla and SpaceX (he himself admits how touch-and-go it was at various points), but he managed to pull it off.…
I thought it was quite well-understood that Musk has a long-term plan to turn Twitter into "the WeChat of the West", a centralized identity/payment platform, likely in the form of x.com?
I think a "WeChat of the West" is possible.
But it sure as hell won't be with a company owned by Elon Musk.
Google is the closest we've seen to it, and a lot of tech people would certainly reject Google trying to be WeChat.
Re: How Much Longer Can Twitter Last, Really?
#63Twitter faces two major financial threats: pending employment lawsuits and massive fines from regulatory violations.
On top of this, the platform's recent efforts to limit API usage have negatively affected both regular users and SaaS products that rely on Twitter analytics. With these mounting challenges, the company's survival is increasingly uncertain, and some are predicting bankruptcy as a potential outcome. The long-term impact of these developments remains to be seen.
Re: How Much Longer Can Twitter Last, Really?
#64Earlier quoted context omitted.
I actually didn't know this, thanks for the info. Would it have to stop operating if it went bankrupt?
It depends. Under US bankruptcy laws corporations can file for bankruptcy for the purpose of reorganization of debts (chapter 11) or for liquidation (chapter 7). Under reorganization the expectation is that you are trying to rehabilitate a failing business that may be profitable again - so the business continues running, and can even borrow money - though your business actions are monitored and ultimately may be appr…
So in this case, would Elon have to file for bankruptcy and then sell it to someone else to restructure it? If so, what happens with the cash, since I assume the debt-holders have been wiped out?
Re: How Much Longer Can Twitter Last, Really?
#65Earlier quoted context omitted.
It depends. Under US bankruptcy laws corporations can file for bankruptcy for the purpose of reorganization of debts (chapter 11) or for liquidation (chapter 7). Under reorganization the expectation is that you are trying to rehabilitate a failing business that may be profitable again - so the business continues running, and can even borrow money - though your business actions are monitored and ultimately may be appr…
So in this case, would Elon have to file for bankruptcy and then sell it to someone else to restructure it? If so, what happens with the cash, since I assume the debt-holders have been wiped out?
To restructure he wouldn’t necessarily need to sell: basically, Twitter would put out a restructuring plan that shows how they’re going to fairly pay creditors and bring the business back to profitability. Sometimes that means reducing operations and selling off parts of your business. It often means creditors taking a haircut - because 25% or 50% beats 0%. This often comes in equity in the restructured company in exchange for creditors waiving their claims.
Here’s the rub, though: in chapter 11, the courts have a huge role. They approve your restructuring plan only if it’s fair to your creditors. They have to green light quite a few actions you might want to take in the course of running your business. They might form a creditors committee out of the people you owe money to and take their advice on decisions. It’s a long and drawn out process that requires calm leadership willing to work with ones “adversaries” to come to an agreement.
And no matter your opinion on Elon, positive or negative, I doubt many people would say his reign at Twitter suggests he’d do that.