Why is King Charles III suing Elon Musk?
Twitter does not pay rent for its Crown-owned London office. In fact, the new CEO has been occupying all the company’s offices for free since December.
The second richest man in the world does not even pay rent to the ruler of Great Britain. So Charles III is suing Elon Musk’s company, Twitter. But in Corona, it’s the latest in a long line of creditors to tap into Musk’s wallet.
The CEO has already been sued over other offices he decided to hold for free. The move is part of a larger plan: to recoup the $44 billion it paid to buy the platform. To keep it all together, Musk held an auction to sell chairs, computers and Twitter icons.
The cause of the English crown
The Crown Estate, which manages the property portfolio of the British royal family, has sued Twitter, alleging that billionaire Elon Musk’s company has not paid rent for its London office in recent months.
Twitter moved to offices in London’s West End in 2011, the lawsuit in London’s High Court explains. The building has now been stripped of all Twitter logos, but the company still occupies its headquarters, the Daily Telegraph reports. This is the fourth lawsuit filed against Twitter over alleged non-payment of rent, Musk’s strategy to cut costs through high-profile financial struggles.
The news comes after the owner of Twitter’s San Francisco headquarters sued the social media company for $6.8 million for allegedly failing to pay December and January rent. But the mechanism is repeated almost everywhere. Indeed, as the New York Times explained, Twitter hasn’t paid rent on all of its offices. In addition to the California Street building in downtown San Francisco, Elon Musk was also sued for non-payment of a seat in Seattle. Twitter also refused to pay $197,725 for private charter flights taken during the week of Musk’s arrest. .
Money back plan
Musk’s aggressive actions show how he is trying to break previous agreements at Twitter. In fact, it was he who ordered the buildings not to pay rent, hoping that he could renegotiate with the owners at a lower price.
In addition to not paying rent, Musk is also laying off half of the company’s 7,500 employees, including the platform’s head of disinformation policy. The dangerous outages, especially in the industry that manages content on the platform, have also caused concern among advertisers who pull their content off the platform.
Since early November, Twitter’s new CEO, along with his supervisors, has sought to save about $500 million, according to an internal document seen by The New York Times. In addition, Twitter’s surviving executives were forced into a “zero-based budgeting” method, which analyzes the organization’s needs and costs from a “scratch base,” meaning no funds are allocated at the beginning of each period.
A big stock stimulus plan put in place by Musk also includes an auction of Twitter’s remains. Indeed, the company sold some of its “furniture”, including the emblematic statue of the Twitter bird, the symbol of the company’s headquarters in San Francisco, for $100,000.
All of Elon Musk’s lawyers
When Musk joined Twitter, he had lawyers by his side. However, in October, he fired Twitter’s chief legal officer and general counsel “for cause” and appointed his personal attorney, Alex Spiro, to lead the company’s legal and policy affairs. According to some rumors on the team, Spiro was also fired after certain decisions that did not satisfy Musk, such as the retention of James A. Baker, the assistant general counsel of Twitter. Now Musk has changed his mind and is turning to lawyers for other companies, such as SpaceX, who will face all unpaid rent claims.