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X may go bankrupt under if advertisers keep fleeing

A new report by The Financial Times has claimed X will now turn to SMBs to shore up revenue after Musk angered big brands by supporting antisemitic content…Asian Lite News

The loans Elon Musk took out to buy Twitter (now called X) was about $13 billion and the social media company has to pay about $1.2 billion in interest payments every year.

As big advertisers quit the platform and X cannot pay the interest on its loans or pay employees, then it could actually go bankrupt, the BBC reported on Sunday. “But that would be an extreme scenario that Musk would surely want to avoid,” the report mentioned.

However, for a company he bought for $44 billion, bankruptcy might sound unthinkable but “it is possible”. Disney and Apple are no longer advertising on X and Musk told companies last week to “Go f*** yourself.”

Retail giant Walmart has confirmed that it is not advertising on X. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson was quoted as saying in reports.

The departure of Walmart adds to the growing list of firms leaving X after Musk endorsed an antisemitic post last month (for which, he apologised last week). Apple, Disney, IBM, Comcast and Warner Bros. Discovery are among the companies no longer buying ads on X.

Last year, around 90 per cent of X’s revenue came from advertising. Not any more. Musk has warned that the loss of big advertisers would spell the end of X. “If the company fails, it will fail because of an advertiser boycott. And that will be what bankrupts the company.” he said.

“What this advertising boycott is going to do is kill the company. And the whole world will know that those advertisers killed the company, and we will document it in great detail,” Musk had told the audience at The New York Times’ DealBook Summit.

In 2022, Twitter’s advertising revenue was around $4 billion. Insider Intelligence estimates that this year, it will drop to $1.9 billion. After Musk’s outburst against big advertisers, X is reportedly aiming to tap small and medium businesses (SMBs) to offset the advertising loss from big companies.

A new report by The Financial Times has claimed X will now turn to SMBs to shore up revenue after Musk angered big brands by supporting antisemitic content.

“Small and medium businesses are a very significant engine that we have definitely underplayed for a long time,” a company spokesperson was quoted as saying. “It was always part of the plan, now we will go even further with it,” the company added.

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Birmingham Declares Bankruptcy After Equal Pay Claims, Halts Non-Essential Spending

The deficit arose due to difficulties paying between 650 million pounds and 760 million pounds in equal pay claims, according to the notice report…reports Asian Lite News

Birmingham, Britain’s second largest city, has effectively declared itself bankrupt, shutting down all non-essential spending after being issued with equal pay claims totaling up to 760 million pounds ($956 million), the media reported.

The Birmingham City Council, which provides services for more than one million people, filed a Section 114 notice on Tuesday, halting all spending except on essential services, reports CNN.

The deficit arose due to difficulties paying between 650 million pounds and 760 million pounds in equal pay claims, according to the notice report.

The city now expects to have a deficit of 87 million pounds for the 2023-24 financial year.

Sharon Thompson, deputy leader of the council, told councilors on Tuesday that it faces “longstanding issues, including the council’s historic equal pay liability concerns”, CNN reported.

Thompson also blamed in part the UK’s ruling Conservative Party, saying Birmingham “had 1 billion pounds of funding taken away by successive Conservative governments”.

In response, a spokesperson for Prime Minister Rishi Sunak said that “clearly it’s for locally elected councils to manage their own budgets”.

The government has been “engaging regularly with them to that end and has expressed concern about their governance arrangements and has requested assurances from the leader of the council about the best use of taxpayers’ money”, the spokesperson added.

The multicultural city of Birmingham is the largest in central England.

It hosted last year’s Commonwealth Games and is scheduled to hold the 2026 European Athletics Championships.

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Rahul Nanda declared bankrupt in the UK

bankruptcy.

The bank maintains that it has not got its due back and suspects that Nanda has more hidden assets. The case will continue in the new year…reports Asian Lite News

The dashing and larger-than-life owner of Topsgrup, once India’s largest and highly sought after security company, Rahul Nanda has been declared bankrupt in the UK.

Nanda, also popularly known as Ritchie, who used to be the toast of Mumbai’s party circuit is being pursued by the Punjab National Bank which extended credit to the tune of over £10 million to Shield Guarding Limited on Nanda’s personal guarantee given in 2013.

Shield Guarding Ltd later changed its name to Jameson and Harrison Society Ltd in April 2016 and the same month went into administration and is now in liquidation. PNB claims Nanda has not fully disclosed his assets and liabilities even though he has been declared bankrupt. They have subjected him to attend courts using a procedure known as debtor questioning.

One such hearing was held before Master Kaye on Monday.

Vivek Kapoor, representing PNB told the court that Nanda has failed to disclose all his bank accounts and statements among several other discrepancies. Nanda’s lawyer Paul Dipre countered that his client has truthfully submitted all the information that was sought by the bank. “He can only get his own bank statements for the last six years of his personal accounts,” Dipre told the court. Giving an indication of the hard times, Nanda faces, Dipre told the judge that subsequent court hearing would mean that his client would have to borrow money for another day of representation in court. Nanda was in the court appearing as a pale shadow of his former self.

The bank maintains that it has not got its due back and suspects that Nanda has more hidden assets. The case will continue in the new year.

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