Musk says X won't leave San Francisco despite city facing 'doom spiral'
foxbusiness.comPublic Ventures President Lou Basenese discusses why Elon Musk rebranded Twitter as X on «Varney & Co.»
Billionaire Elon Musk says Twitter – the social media company he is in the midst of rebranding as «X» – will keep its headquarters in San Francisco despite the «doom loop» the city is facing as big-name businesses head for the exits.
Musk, who led a group of investors in acquiring Twitter that took the company private in a $44 billion deal last year, tweeted Saturday that the company’s headquarters will remain in San Francisco despite receiving offers aimed at enticing the company to relocate.
«Many have offered rich incentives for X (fka Twitter) to move its HQ out of San Francisco. Moreover, the city is in a doom spiral with one company after another left or leaving. Therefore, they expect X will move too. We will not,» Musk explained.
«You only know who your real friends are when the chips are down. San Francisco, beautiful San Francisco, though others forsake you, we will always be your friend,» Musk’s tweet concluded.
SAN FRANCISCO, NEW YORK FACE ‘URBAN DOOM LOOP’
Billionaire Twitter owner Elon Musk says the company's HQ will remain in San Francisco despite the city facing a «doom spiral.» (Nathan Laine / Bloomberg via Getty Images / File / Getty Images)
San Francisco’s economy has suffered from an exodus of businesses and residents in the last few years, creating a «doom loop» in which a local government enters a downward fiscal spiral as its tax base declines.
An urban doom loop involves a decline in workers present in offices in city centers, which results in businesses shrinking their office footprint and rental overhead. The decline in demand causes real estate prices to fall, which in turn reduces
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