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

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 ...