Elon Musk raises the alarm on Twitter: “Investors on the run and debts”
“Twitter’s cash flow is negative“: the owner himself said so Elon Muskwith a twitter on the same platform, in response to a user making suggestions regarding the recapitalization of the company, bought by the founder of Tesla last October for 44 billion dollars. In other words, Twitter spends more than it earns.
Weighing into social media are, in Musk’s words, “a heavy debt” and the fact that advertising revenue is dropped by almost 50%, even if the patron has not clarified the period to which he refers. For Elon now the absolute priority is to reverse this trend, then we can think about everything else. “We need to achieve positive cash flow before we give ourselves the luxury of doing anything else.”
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) July 15, 2023
Since last fall, to try to reduce Twitter costs, Musk has made some drastic decisions, laying off almost three-quarters of the staff and focusing on the Twitter subscription service, Twitter Blue. In the meantime, however, very many advertisers have stopped investing on the platform, above all due to some decisions by Musk, who among other things has decided he wants to admit a lot of hate content, in particular coming fromextreme right which were previously banned on Twitter. One of the decisions that caused the most discussion was the restoration of Donald Trump’s social account.
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