Twitter proprietor Elon Musk stated the corporate nonetheless has detrimental money stream due to its heavy debt load and a roughly 50% drop in promoting income.
This Social media “The location might want to attain constructive money stream earlier than now we have the luxurious of anything,” Musk stated in a tweet.
Some high advertisers have halted spending on the platform after Musk acquired the corporate final yr amid issues about modifications the billionaire may make. Earlier this yr, Musk stated that most of the advertisers that fled had returned, and that changing into cash-flow constructive was imminent.
“Nearly all of them are both again or have stated they’re coming again,” Musk stated Twitter area in April.
Advertiser spending fell 89% to $7.6 million in a two-month interval earlier this yr, in line with estimates by market analysis agency Sensor Tower. The highest 10 advertisers spent $71 million on advertisements from September to October 2022, earlier than Musk’s acquisition.
Musk purchased the social media firm in late October 2022 for $44 billion. He has since made a number of modifications to the product and firm construction, a lot of which he attributed to decreasing the corporate’s money burn and debt burden.
Following this deal, the corporate laid off hundreds of staff. Amongst different modifications, Musk launched Twitter Blue, which lets customers confirm their identification for $eight a month, and launched methods for customers to monetize their content material.
Mark Zuckerberg of Meta Platforms Inc. this month launched his personal Twitter competitor, Threads, which rapidly reached 100 million customers within the days after launch. Some lawmakers have transitioned to another platform, however are nonetheless cautious of committing to it.
