The guy is LOSING BILLIONS of dollars in his companies…..
Tesla and SpaceX CEO Elon Musk, who is also CTO and executive chairman of Twitter, said early Saturday morning that cash flow remains negative at the social media company because of a nearly 50% drop in advertising revenue coupled with “heavy debt.”
“Need to reach positive cash flow before we have the luxury of anything else,” Musk wrote in response to a tweet.
Musk took over Twitter in October of last year in a deal valued at around $44 billion, including about $13 billion in debt. He sold billions of dollars worth of his Tesla shares in part to finance that deal.
By January, hundreds of advertisers had reduced or halted their ad spending on Twitter in response to Musk making steep staff cuts at the company, and implementing changes to the platform, especially restoring previously banned accounts and changing its approach to content moderation.
In April, Musk told a BBC reporter that “almost all” advertisers had resumed buying ads on Twitter. He also claimed at that time that the company was “roughly breakeven,” and expected to become cash flow positive within the next quarter.
His statement about Twitter’s cash flow problems today comes a little over one month since Linda Yaccarino, who previously ran global advertising for Comcast’s NBCUniversal, took on the role of Twitter CEO. NBCUniversal is the parent company of CNBC.
Yaccarino’s appointment inspired hope among media industry insiders that Twitter would address immediate challenges to its ad business.
In recent days, Twitter began doling out a share of its ad revenue to select content creators on its platform. Musk’s remarks were made in response to followers who wanted to know why that revenue-sharing program was so limited in scope.
A number of widely followed accounts on Twitter posted that they were dismayed they did not qualify to earn income from the program yet….
Note…
From my usage of the social media site it has allowed almost EVERY crazy assed RightWingNut a place to peddle off the wall BULL SHIT….Featuring indicted Donalkd Trump as the Second Coming…..
You DO have other choices including threads which I hear means you are married to Instagram for life….