Elon Musk
Twitter hasn’t change into money stream constructive but, Elon Musk has confirmed, with a “heavy debt load” and promoting income dropping to half its traditional quantity not serving to issues for the billionaire.
In March, Musk provided a prediction that Twitter had an opportunity of being money stream constructive by the second quarter of 2023. In a Saturday tweet, Musk admits the micro-blogging web site hasn’t met the mark.
In response to a query about refactoring debt, Musk told followers “We’re nonetheless destructive money stream, as a consequence of ~50% drop in promoting income plus heavy debt load.” Twitter must “attain constructive money stream earlier than we have now the posh of the rest,” he added.
Twitter’s issues stem from a variety of points compounding the issue. For a begin, the “heavy debt load” is brought on by curiosity funds on debt Twitter took on when Musk acquired it and took it non-public.
In accordance with Reuters, the annual curiosity funds value Twitter round $1.5 billion.
The 50% drop in advert income can also be a problem for the corporate, which has stumbled in its relationship with advertisers post-acquisition. This era allegedly included Apple as an advertiser who apparently veered away from Twitter, however later made a return.
Musk’s feedback floor as Twitter is underneath assault from Threads, a rival platform that has seen appreciable short-term success. Naturally, shortly after launch, Twitter threatened to sue Meta for copying it.
