Elon Musk reveals that Twitter’s cash flow is still negative due to a 50% decrease in advertising revenue and a significant debt load. Musk shared this information as a response to a tweet offering business advice on Saturday.
“We need to achieve a positive cash flow before we can focus on anything else,” Musk concluded.
Since acquiring Twitter in a $44 billion deal last fall, Musk has been working to reassure advertisers after concerns arose regarding top executive changes, mass layoffs, and a different approach to content moderation. This included allowing some high-profile users who had been banned back onto the platform.
In April, Musk stated that most advertisers who had left had returned and that the company could potentially achieve positive cash flow in the second quarter.
In May, Musk appointed Linda Yaccarino, a former NBCUniversal executive with extensive connections in the advertising industry, as the new CEO.
However, since then, Twitter has faced backlash from users due to new restrictions on the number of tweets they can view per day, resulting in some users being locked out of the site. Musk defended these restrictions, stating that they are necessary to prevent unauthorized scraping of valuable data.
Twitter received a new competitor this month when Meta, the owner of Facebook, launched a text-focused app called Threads, which gained tens of millions of sign-ups within a few days. Twitter responded by threatening legal action.
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