The financial challenges faced by Twitter continue to persist, as owner Elon Musk reveals a nearly 50 percent decline in advertising revenue, further exacerbated by the burden of heavy debt. Musk conveyed in a tweet on Saturday, “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, renowned for his roles as CEO of Tesla and SpaceX, acquired Twitter in a $44 billion deal last fall. While he initially served as the social media platform’s CEO, he recently stepped down and assumed the positions of executive chair and chief technology officer.
Since taking over Twitter in October, Musk has made controversial decisions, including mass layoffs, the termination of top executives, and the introduction of the Twitter Blue program, which requires a monthly subscription for verification check. Additionally, Musk has eased content moderation measures, reinstating previously suspended accounts, such as that of former President Trump, while also imposing limits on the number of tweets users can read in a day.
In an attempt to assuage advertisers’ concerns regarding these choices, Musk assured the BBC in April that the platform is “roughly breaking even” after his tumultuous takeover. According to the BBC, most advertisers have returned to the platform following their initial exodus.
In May, Musk appointed Linda Yaccarino, a former head of advertising for NBCUniversal, as the new CEO, with a focus on business operations, product design, and new technology.
This news follows recent remarks made by Matthew Price, CEO of Cloudflare, who stated that Twitter’s traffic has plummeted since Musk’s acquisition of the platform.
Furthermore, Meta, a competing text-based platform, launched earlier this month, garnering 100 million downloads within its first week of release.
Note: The Associated Press contributed to this report.
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