Twitter sued for non-payment of office rent Pipa News

Twitter sued for non-payment of office rent

Microblogging platform Twitter has failed to pay $3.36 million in December rent and $3.42 million in January rent for its offices at 1355 Market Street, the building’s owner Mr. Nine Market Square LLC said in a lawsuit filed in state court in California. said in the lawsuit.

According to a Crown Estate spokesperson, the legal action was taken following a contact with Twitter regarding arrears of rent on its office space at 20 Ayr Street, London.

The news of Twitter not paying rent came to the fore last month as well. In an effort to cut costs following Elon Musk’s $44 billion acquisition of Twitter, the social media company has stopped paying rent, according to a report in The New York Times in December 2022.

According to the complaint, Twitter has leased more than 460,000 square feet of space on eight floors of the San Francisco building. Mr. Nine Market Square put up a letter of credit for $3.6 million as security, which Twitter needed to raise to $10 million if control was transferred, which happened when Musk bought the company in October for $44 billion .

Earlier, Musk had said that Twitter faced a “precipitous decline in revenue” in the days following the $44 billion acquisition of the company. Without providing any figures or evidence, he claimed in a tweet that the drop in revenue was the result of activist groups putting pressure on advertisers.

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