Twitter got a lucrative tax break to stay in San Francisco and is now telling its investors that the company's future in the city is no longer secure.
The revenue-sharing deal started in 2010, when then-Mayor Gavin Newsom was pushing to sign a series of ordinances to transform San Francisco into a tech hub. Under the terms of the tax break, Twitter agreed to send at least $100 million of its annual revenue to the city over a decade. This is Money reported that the company was once reporting revenue of $300 million a year.
Marking a change of direction, the company announced that it is considering other states for its new base.
The decision came after a Jan. 31 meeting between Twitter and Gov. Gavin Newsom and other local officials to discuss the proposal and the company's expansion plans. Twitter's proposals for a new headquarters would require two new office buildings, a 15-story complex and a ninth floor.
This proposal has given Mayor Newsom's office and the city some space to negotiate.
"Twitter is a great partner and has brought jobs and tax revenue to San Francisco," a city spokesperson said in a statement after the meeting. "San Francisco is happy to have them in town, but we're all looking to make the Bay Area more competitive and innovative for the tech industry. We value Twitter's continued strong contributions to the Bay Area, and we look forward to continuing our strong relationship."