, Columnist
Elon Musk Can’t Avoid Paying Twitter’s Rent Forever
Stiffing the landlords will be costly in the long run.
Time to pay up.
Photographer: BloombergThis article is for subscribers only.
The weird merry-go-round involving Twitter’s unpaid bills shows no sign of slowing. On this whirl, it is KKR suing the social media company for failing to pay rent on office space in Oakland, California. Already in arrears in Boston, San Francisco and London, the beleaguered bird is now facing a demand for $1.3 million due to the alleged breach of contract.
Possibly these are strategic pauses, an effort by Elon Musk to extract better lease terms. Classically, however, failure to make payments under a commercial lease has often signaled that a company has severe cash flow problems.