Dan Gillmor

Question for lawyers in the financial world:

Given how routinely Musk has been stiffing his creditors at Twitter, why haven't some of them petitioned to put the site into bankruptcy so they'll have a chance of getting at least some of what they're owed?

Jul 2, 2023 at 9:27amWeb
Show threadwfredsJul 2, 2023
@dangillmor Good question. Goes for his lenders as well.
Show threadRenato RamondaJul 2, 2023
@dangillmor I guess because they think (erroneously, IMO) that they'll turn the ship around and make profit and actually pay the debts (as opposed as filing for bankruptcy and getting literally nothing because the material value of the company is very literally zero)
Show threadRenato RamondaJul 2, 2023
@dangillmor as the saying goes, "If I owe you 1000 bucks, I have a problem. If I owe you 100 Million bucks, *you* have a problem"
Show threadmickJul 2, 2023
@dangillmor The new CEO seemed to have settled the Google outstanding account, is there am actual list of outstanding creditors?
Show threadArtemesiaJul 2, 2023

@dangillmor

> why haven't some of them petitioned to put the site into bankruptcy so they'll have a chance of getting at least some of what they're owed?

Probably because it's a money-losing dog of a website and always has been. There's no blood in that stone.

Show threadPhilippa CowderoyJul 2, 2023

@dangillmor I am not a lawyer, but: who the hell wants to be left holding all that data and the associated legal liabilities?

Because that's most of the assets.

Show threadInfinite CyclistJul 2, 2023
@dangillmor Twitter is a pure service software business. No real value if liquidated. Its software is open source so no IP assets.
Show threadHand PieJul 3, 2023
@InfiniteCyclist @dangillmor Twitter's software is not open source. But it's arguably not valuable IP when there is this open source alternative.
Show threadLindi EmounguJul 2, 2023

@dangillmor Some replies are rightly noting that Twitter has little if any value. But that begs the question: why lend to Musk in the first place?

My theory: ideology. I believe Larry Ellison was one of Musk’s investors, and he’s also a right wing billionaire. I think some people saw how Trump used Twitter and thought they could also 1. have a global cult following, and 2. eliminate what they saw as Twitter’s liberal cultural dominance.

Musk’s lenders may be similarly motivated.

Show threadDeterioratedStuccoJul 2, 2023
@dangillmor
Maybe they are getting what they wanted from it.
Not all transactions are financial.
Show threadShoq 🌿Jul 2, 2023
@dangillmor Good question. Maybe Donald Trump is negotiating for him?
Show threadCat WestJul 2, 2023
@dangillmor Landlords should evict him, take that tax write off.