Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

Twitter/Apple fight reignited while office ‘hotel’ lands Musk in more trouble

Twitter is facing renewed scrutiny after having converted office space into bedrooms, while Musk seems to have taken another jab at Apple

Twitter Inc (NYSE:TWTR) was back in the headlines as Elon Musk’s latest plan involving the use of its San Francisco HQ as a ‘hotel’ for employees to sleep in after they finish work came under scrutiny.

BBC photos showed office space now dominated by beds and wardrobes with San Francisco’s local authorities said to be investigating Twitter following the posting of the photos.

NEW: The BBC has obtained pictures of inside Twitter - rooms that have been converted into bedrooms - for staff to sleep in.

The city of San Francisco is investigating as it's a commercial building. pic.twitter.com/Y4vKxZXQhB

— James Clayton (@JamesClayton5) December 7, 2022

Looking to “ensure the site is used as intended,” local building inspectors are due to visit the offices.

Musk himself is apparently staying in the office while he attempts to rejig the company, he said in a tweet that has since been deleted.

Meanwhile, in a move set to reignite a simmering feud with Apple, Twitter has hiked subscription charges for buyers of its ‘Blue’ subscription through the AppStore.

Users can still access cheaper prices for Twitter’s premium subscription service by paying directly through its own platform, otherwise the price rises from US$7.99 to US$11 on the Apple's store.

Elon Musk previously suggested Apple had threatened to remove Twitter from its app store, with renewed tension between the companies likely a result of the 30% cut taken by Apple for purchases made on its platform.

Finally, Musk’s bankers are looking to get their unsecured loans backed by Tesla stock, according to Bloomberg.

Musk took out loans worth US$13bn from a consortium including Morgan Stanley (NYSE:MS) and Barclays when he took over Twitter for US$44bn in late October and is paying 11.75% interest on some US$3bn of these.

The banks are said to be looking at new loans to replace these using Tesla shares as collateral.

While no deal has been agreed yet, the proposed loans would offer lower interest rates for Musk, while providing more security for the banks.

Musk has previously referenced the financial woes of Twitter, outlining that bankruptcy was not off the table for the company while he has sought to secure advertising revenue and shore up income elsewhere.

He has already offloaded of billions of dollars worth of Tesla shares to fund his takeover of Twitter

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK