Elon Musk cuts Twitter employee benefits as he warns of bankruptcy

sdrawk

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SpaceX and Tesla was not built with employees like you. Don't worry, many companies will settle with mediocre employees.
Yes. He likes workaholics or people who live to work. He's not interested in people who want a life outside of work.
He once fired someone from SpaceX who left his duties because his wife was about to have their first child.
 

Vrotappel

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Yes. He likes workaholics or people who live to work. He's not interested in people who want a life outside of work.
He once fired someone from SpaceX who left his duties because his wife was about to have their first child.
Yep changing the world takes a specific type of *******.

A33hole is filtered?
 

TheMightyQuinn

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Yes. He likes workaholics or people who live to work. He's not interested in people who want a life outside of work.
He once fired someone from SpaceX who left his duties because his wife was about to have their first child.
Source?
 

_TrXtR_

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If that were true Musk wouldn't have gone to the trouble of buying them as he did. He simply could have waited for it to fail and owned it outright for cents on the dollar and probably would've had a better reception from the Twitterati in general.
Nah
People would just pump more investment into it and they'll open another department comprised of humans identifying as animals.
 

_TrXtR_

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I guess people that are disadvantaged just can't help to break successful people down.
It's sad though to watch. It's obvious stupid hate and drivel about the guy thst actually hasn't hurt anyone, drivel by people that haven't done anything.
 

Paati Sooth

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SpaceX and Tesla was not built with employees like you. Don't worry, many companies will settle with mediocre employees.
You and I have a different definition of mediocrity then. Working 12 or 16 hour days doesn't elevate you beyond mediocrity. It means one of two things, either you are mediocre or below that because you can't deliver on time (or you're working hard instead of smart), or, more likely, because your management is incompetent and has set unrealistic deadlines which you're now forced to meet so that they can get extra bonuses.
I would be absolutely horrified at the thought that the people building the rocket that will send me to Mars haven't slept more than 4 hours a night for the past year.

I think you've just misunderstood his motivation. He does things because he can a lot of the time IMO.
Absolutely. And that is his right. He is the one who put $44b down, so he could shut down the company tomorrow if he wanted to. But he's been very public with his supposed motivations for wanting to buy twitter, until it because apparent that he would have to. What he claimed initially, the nonsense about caring about free speech etc, and what he's doing now (personally tweeting at random people begging them for $8) are two different things.
The point is, he has proven himself to be unreliable, untrustworthy, and most importantly, not at all as smart of competent as the image that he's created for himself. If he started this whole process saying he's buying twitter because he can, and he doesn't care what happens but he just thinks it would be fun, then we wouldn't be having this discussion. He claimed he would eliminate bots and promote free speech. Fun fact, in the US, parody is protected as free speech by the first amendment. So him tweeting furiously about how parody accounts must be identified as such or be permanently suspended, goes completely against his so-called free-speech absolutism, and just highlights the fact that he knows nothing about the fine details of the things he talks about. He creates hype, but he knows no details.

Twitter is not run into the ground. And it's not gone yet.
So maybe hold your opinion for a year till it is actually run into the ground. Your whole SA is based on a fact that hasn't happened yet.
So hold that thought darling.
Sure thing, we'll come back in a year to see if Twitter is the bot-free free speech town square that he said he was going to build.

I guess people that are disadvantaged just can't help to break successful people down.
It's sad though to watch. It's obvious stupid hate and drivel about the guy thst actually hasn't hurt anyone, drivel by people that haven't done anything.
Again, the irrelevant and idiotic ad hominem argument that because I have not built a rocket, or I am not a billionaire, or I was never the richest person in the world, that my arguments count for nothing and I am not allowed to disagree or point at flaws in Elon's actions. The fact that I have not done the things Elon has done does not in any way diminish the weight of my arguments. So argue against the facts, instead of trying to argue against the poster.
 

me_

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Twitter was probably overvalued. All tech stocks are. It wasn't running itself into the ground though. It was losing money but nowhere near talking about bankruptcy. That is only a possibility now that Elon's taken charge.

Anyways, even if Twitter lied about their status, it still proves that Elon is an absolute idiot. Because he should have uncovered those lies during due diligence... the thing that you do before you offer to pay a large sum of money to acquire something. What's that? Elon didn't do any due diligence? Wow, so smart. So whatever Twitter lied about is irrelevant. Musk didn't even bother to ask about anything for them to have lied about. He is a fool.
Musk was incredibly unlucky in his timing. At the time he made the offer, the market was still doing well, there had only been a single 25 BP rate hike, but nothing to be worried about. All listed companies were heavily overvalued due to low interest rates and cheap debt, but the availability of cheap debt meant you could leverage that for very little cost (that's what drove the valuations). The deal would see about half the money coming from debt and the other half coming from sales of Tesla stock.

Then the Fed delivered the largest rate hike since 2000 and they started Quantitative Tightening. Stocks, including Tesla, started to crash as liquidity is taken out of the market.
It's at this point Musk tries to back out of the deal - Tesla's stock had fallen 33% so he would have to sell a lot more and his debt costs were skyrocketing he could see there was still more to come. A couple of weeks later, he stated that he believes a recession is inevitable before starting legal action to get out of the deal.
At this stage, he had a deal which was manageable when the markets were good, but was now completely overvalued in the current market.

Fast forward to now and he's had to take the company, but the debt servicing costs were based off a Fed Funds rate of 0.5% which has now risen to 4%. I would guess the interest payments are significantly more than what he originally planned.

It doesn't seem right to me that Twitter should be paying those debt servicing costs though. You would think that Musk would have to take out personal loans to have the cash available to make the purchase, but the deal is structured so Twitter pays, in part, for Musk to buy it.
 

Paati Sooth

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It doesn't seem right to me that Twitter should be paying those debt servicing costs though. You would think that Musk would have to take out personal loans to have the cash available to make the purchase, but the deal is structured so Twitter pays, in part, for Musk to buy it.
Yeah, the world operates differently for billionaires. Although the way I understand it, old twitter didn't have to pay for that, all the shareholders got their $54.20. Now that Elon's paid out all the shareholders, new twitter has taken out loans against itself which it has to pay back at about $1b per year. Except the timing is that new twitter's loans kick in at the same time that Elon takes over, so he immediately takes the loan money to use towards paying the shareholders their $54.20. Could be wrong, but thats how I understand it works.
Although if I went to Wesbank and asked them to finance me a Ferrari and then also went to Absa and asked to take out a loan using the Ferrari I'm about to buy as collateral, so I can use Absa's loan to pay off Wesbank, they'd probably close my accounts for being a lunatic. But billionaires are able to do things normal people can't.
 

me_

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Yeah, the world operates differently for billionaires. Although the way I understand it, old twitter didn't have to pay for that, all the shareholders got their $54.20. Now that Elon's paid out all the shareholders, new twitter has taken out loans against itself which it has to pay back at about $1b per year. Except the timing is that new twitter's loans kick in at the same time that Elon takes over, so he immediately takes the loan money to use towards paying the shareholders their $54.20. Could be wrong, but thats how I understand it works.
Although if I went to Wesbank and asked them to finance me a Ferrari and then also went to Absa and asked to take out a loan using the Ferrari I'm about to buy as collateral, so I can use Absa's loan to pay off Wesbank, they'd probably close my accounts for being a lunatic. But billionaires are able to do things normal people can't.
From what I've been able to establish, they created a new company - X Holdings (possibly a set 3 companies all with similar names) and then "X Holdings I" merges with Twitter and buys the shares - I assume then that the primary company (X Holdings I) was laden with the debt, but the details are a bit sketchy.
I suppose when you are paying $440M to $1.3B in Investment Banking fees, you expect it to pay for itself.
 

zoozi

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So you expected him to run it into the ground due to what? He's previously massive successes that tower in comparison to anything you have done your whole life. Funny fact twitter and all big tech in US was over inflated in value. The investment wasn't needed it was quick money making schemes. The investors cached out its pay day.
Not any action he has done is driving the company to bankruptcy. Thry company drove itself there when it overstuffed because of the massive investment pool. I think it's possible Musk said this, but maybe it was the oculus guy.... but a company can have too much funding. When it has too much funding people plan big things long term with lotsa money invested into it and **** things up. Like Twitter. Twitter has many departments that has nothing to do with the business of dropping tweets.

Twitter ran themselves into the ground and lied about it.
I love this lol, that vicious loyalty towards the guy, resorting to personal insults when someone questions Lord musk. A few friends are the same. Feels like walking on eggshells when the topics brought up, lest a good friend throws hardcore personal insults at you in defense of their their idealised self (musk).
Don't worry bud, one day soon you'll be a billionaire Silicon Valley tycoon hahaha!
Someone please explain the psychology behind these musketeers? I can't think behind the sound of musks cock gagging in their throats.
 

_TrXtR_

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I love this lol, that vicious loyalty towards the guy, resorting to personal insults when someone questions Lord musk. A few friends are the same. Feels like walking on eggshells when the topics brought up, lest a good friend throws hardcore personal insults at you in defense of their their idealised self (musk).
Don't worry bud, one day soon you'll be a billionaire Silicon Valley tycoon hahaha!
Someone please explain the psychology behind these musketeers? I can't think behind the sound of musks cock gagging in their throats.
Aaaaw so toxic the internet is melting.
 

Paati Sooth

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Someone is successful and has achieved success in his business career, managed many successful companies and is the richest man in in the world.

Some fckwit says that Musk is an idiot / peopkop and achieved nothing, is just a conman etc…

Someone points out to fckwit that the fckwit is thinking like a fckwit.

Fckwit gets upset that someone says he is a fckwit for thinking like a fckwit.
As fckwits do…
From one fckwit to another, do you think that Elon has done a good job running Twitter over the past 2.5 weeks? Do you think his leadership over the past 2.5 weeks has been a net positive for Twitter and its employees and its users?
 

ShaunSA

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From one fckwit to another, do you think that Elon has done a good job running Twitter over the past 2.5 weeks? Do you think his leadership over the past 2.5 weeks has been a net positive for Twitter and its employees and its users?

I don't give a feck about Eelawn, Twitter, its employees or its users

But you lot reeing is great fun. Keep up the good tears :thumbsup:
 

Paati Sooth

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