Viewing a single comment thread. View all comments

thatVisitingHasher t1_j73mzgo wrote

Reply to comment by CrotchetAndVomit in Some popular accounts likely to disappear from Twitter as Elon Musk ends free access to API by printial

It was running negative before Elon. They’ve been using Investor dollars to keep the company growing.

−25

CrotchetAndVomit t1_j73ne54 wrote

Yes. I know. Like I said, VC Black hole. My point was that with the shit Elon is pulling there, HIS investors are calling in their bets. That wasn't an issue for Twitter pre Musk. Twitter had made a business running at a loss and growing for well over a decade. Elon messed that all up because people hurt his feelings on the internet

27

thatVisitingHasher t1_j73o59g wrote

Does he have investors right now? He turned it into a private company. Everyone got paid out when he bought the company. I think he’s using his own bank account to fund the business. There are no investors to chase away.

We should probably look at these tech companies that are growing with a negative balance sheet. That shouldn’t happen.

−27

CrotchetAndVomit t1_j73q7jy wrote

Oh course he has investors. While he is the majority stake holder he didn't buy Twitter with his pocket change. He has loans from several banks and a hand full of Saudis at a minimum. All of which likely have SUBSTANTIAL interest rates given that it's a loan for acquisition of a loss leading company

(Source from Routers with some incomplete numbers: https://www.reuters.com/markets/us/who-is-financing-elon-musks-44-billion-deal-buy-twitter-2022-10-07/ )

He offered severance yes but that's not the point and irrelevant to this conversation

him using his own persona accounts to finance his shit show at this point that's on him and because he fucked up by coming in way too hot and torching any good will he might have had from outside investment. You can track how he typically finances day to day operations by looking at any of his other companies. They are all run similarly at the macro level.

Plenty of tech companies run at a loss and grow for substantial periods of time. It's not in and of itself a cancerous place to be as a company when your product will take time to get to a place where it is marketable. Those companies often being an IP to a functional state and then sell it or are absorbed into other much larger companies like Google/Facebook/Amazon. So much so that it's become a trope on TV with shows like Silicon Valley.

12

Infamous_Yogurt2858 t1_j73yq80 wrote

He may not have investors in the exact sense a public company does, but he absolutely has investors (or more properly creditors) who helped him finance the purchase and they want their cut.

7