Musk is slashing prices after his $44 billion deal last year to buy Twitter left the corporate on the hook for about $1 billion in annual curiosity funds. Twitter has already been taken to courtroom this month for falling behind on lease at one other San Francisco workplace.
It’s the latest legal headache for Musk, who has been testifying in latest days in a separate class-action lawsuit from Tesla buyers alleging his 2017 tweet misled them about funding to take the electrical carmaker non-public.
The billionaire Tesla CEO’s cost-cutting technique for Twitter additionally has included gutting the company’s workforce and auctioning off memorabilia and fancy workplace furnishings.
Twitter didn’t reply to a request for remark. Its communications division was shut down after Musk’s acquisition.
The proprietor of Twitter’s San Francisco headquarters, situated at 1355 Market St., is suing the corporate after it did not make its newest month-to-month lease fee, in keeping with paperwork filed Friday with the Superior Court docket of California.
The corporate, Sri 9 Market Sq. LLC, stated Twitter “breached the Lease by failing to pay month-to-month lease and extra lease” for January amounting to $3.4 million.
Twitter, which has had a lease for 3 flooring within the constructing since 2011, had fallen behind on an identical quantity of lease in December, which Sri 9 Market Sq. recouped from a letter of credit score that Twitter had put up as a safety deposit, the submitting stated.
After utilizing these funds, the owner says Twitter nonetheless owes $3.16 million in unpaid lease and is in search of late charges and curiosity plus attorneys’ charges. The social media firm nonetheless occupies the property, the owner stated.
In Britain, the Crown Property has began courtroom proceedings towards Twitter after the corporate fell behind on lease at its workplaces close to London’s famed Piccadilly Circus.
The Crown Property, which owns among the priciest actual property in central London, stated it took motion following earlier contact with Twitter over the unpaid lease and is in talks with the corporate however supplied no additional info.
The Crown Property is an enormous property portfolio that features a lot of London’s Regent Road in addition to the Windsor property. It’s an independently run business enterprise, however its earnings are used as a benchmark for the funding of the Sovereign Grant, which is the general public cash that funds the British royal household’s official work.
