Here’s Why Elon Musk’s Talk of a Twitter Bankruptcy Is Premature

tech.hindustantimes.com:

In a call with employees on Thursday, Twitter Inc.'s new owner, Elon Musk, raised the specter of bankruptcy for the social-media company if it doesn't start generating more cash.

It was a surprising scenario to envision for a company he had purchased for $44 billion just two weeks earlier, in part with $13 billion of loans from Wall Street banks. 

It may be nothing more than a scare tactic as he moves aggressively to reshape the company by slashing staff, shaking up its operations and doing away with Silicon Valley perks like remote work and free food. Musk has, after all, been known to throw around the B-word before ostensibly to motivate his workforce.

But few things about Musk or his acquisition of Twitter have been straightforward. And while the possibility of a bankruptcy anytime soon is unlikely, his comments shouldn't be entirely discounted. Twitter has taken on a large debt load. It's struggling with advertisers. And the broader technology industry is under mounting pressure, with behemoths like Facebook owner Meta Platforms Inc. retrenching sharply in the face of weaker advertising growth. With that in mind, here are three questions to understand about Twitter and the B-word:

Is Twitter really facing bankruptcy?

Such a step appears unlikely for now, and the discussion of it is, at best, premature. 

Twitter had $2.68 billion of cash and cash-equivalents as of June 30, along with another $3.4 billion of short-term investments, according to a filing. Even with Twitter's new debt load, that cash pile alone could keep the company running for a good amount of time. 

As the world's richest man, Musk also has plenty of firepower to keep the company afloat, and he could potentially inject more cash into Twitter if things became