Elon Musk says Twitter cash flow is negative due to ad revenue declines, ‘heavy debt’
Elon Musk says Twitter cash flow is negative due to ad revenue declines, ‘heavy debt’
Musk said early Saturday that cash flow at Twitter remains negative because of a nearly 50% drop in advertising revenue coupled with "heavy debt."
What? The super genius couldn't turn it into a cash machine? I thought he was the smartest (and funniest) person on the planet!
I think this is the saddest part, at least for him. Before Twitter, a lot of people thought he was relatively intelligent to be a part of a groundbreaking electric car company, a crazy tunnel digging company, and wild space vehicle company doing innovative things. Now since Twitter, we see an insanely rich narcissistic meglomaniac that was kept out of most Tesla big decisions as he just wanted the publicity for himself, the tunnel digging company was nothing more than a way to interfere with green projects, SpaceX did the same thing as Tesla and succeeded despite Musk's involvement, and a once respected medium of open communication worth a reported $44 billion dollars devolve into a cess pool of bigotry and arbitrary restrictions. Whatever good will he built for himself over the years that saw him even get a cameo in a Marvel movie next to Tony Stark, he's burned through most of it in the eyes of a lot of people.
SpaceX and Tesla both grew with his continuous involvement. The managers were trained (out of necessity) to keep his "genius" in check without destroying the company or getting themselves fired. In a sense, Musk's continuous presence gave the companies a form of immunity.
When he infested the bird, the managers didn't know how to protect it. It was like bringing smallpox to the new world.
His new revenue is from oligarchs, not customers.
Buying Twitter was just him getting a fleshlight for his ego.
Well his mum says he is so it must be true.
Good. Fuck him and fuck Twitter.
No thanks. I have standards.
You mean cozying up to human traffickers and literal Nazis and limiting people to reading a handful of tweets per day didn't convince advertisers to invest??? Who could have imagined that?
Maybe you should not have fucked up a good thing.
Twitter was good?
I think everyone who thought twitter was bad/hated it just really used it the wrong way.
All you had to do was follow specific accounts akin to your interest (and probably avoid reading comments) and it was fab. That was the intended use anyway until they started forcing more algorithmic content you didn't ask for into a new 'home' feed.
It was a fantastic tool for keeping up to date with things you are interested in and there was nothing else like it, still isn't to that scale.
If you were browsing trending sections and engaging in comment threads, then you were always going to have a bad time and get bullshit shoved into your face.
There were some paths to profitability, then there's what Elon decided to do.
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.”
I’m gonna be honest with you, Elon: that sounds like a “you” problem.
Well, at least he has the "sink" in...
My mom said you can't post mean messages about me anymore.
The stepmom that’s also your sister? Because that’s embarrassing dude, you should talk to somebody about how your dad married your sister.
Not my problem
Nelson laugh
The hundreds of thousands of dollars he's paying his right-wing buddies to post on Twitter are going to have a great ROI any day now, he's sure of it!
I never really used Twitter, but I am enjoying dumpster fire.
Now if the government could only get his Muskiness to pay taxes.Didn't they just start that "ad-sharing" thing? This really emphasizes that they are just trying to bribe content creators to drive traffic to the website.
I need some popcorn for when they panic and shut that down.
Too bad the My Pillow guy doesn't have cash to throw at Twitter ads.
Inconceivable.
Screw around and find out, Elon Musk...That man's choices lead to this outcome, and I want to see him simmer in the shit stew. Keep the great news rolling in! 😏
Lol he doesnt care bro. Remember he's a billionaire, even if he spends $20 million a day, he won't be able to spend it all in his lifetime. 9-5 plebs like us can only wish of this one day to put this into perspective, I got a $200k loan which will take me 30 years to pay it back lol
He cares very much about being humiliated. That's the way to hurt him. Make him a punchline.
He paid 44 billion for twitter, that's pretty big chunk of his wealth. And most of his wealth is tied to his shares in Tesla/SpaceX and he can't liquidate them without massive negative impacts on their value.
A lot of billionaires are rich on paper. $44 billion of liquid assets is much more than it would appear.
Yeah this is all lining up way too neatly on the timeline of him meeting with Putin, then buying twitter. Guys a russian asset working to undermine western communications supportive of ukraine.
People need to stop with these conspiracies that it's some kind of 4d chess. We have a recorded history of Musk trying to get out of the deal with every excuse in the book. He only folded when his private communications becoming were being considered to become part of the legal process.
He ran his mouth, like he has done before with Tesla, except this time he got held accountable for it.
That's a good point I've been thinking for a while too. Elon even tried to interfere with the comm setups... Forgot the name of those now. But yeah he's a complete Russian tool.
More like, his old friend Peter Thiel failed to set up a rival platform to Twitter, so Musk helped by tanking the company and saddling it with $13bn of debt.
Glad it's sinking, most likely will be removing my whole account from the platform very soon and gonna be so glad to do so
Not trying to sound judgemental, but what has kept you on up till now?
I just sometimes browse it, that and I use it when things like Uber Eats and other services seem to not work as companies seem to get back to so much quicker on there than any 'help service'. I've posted way more on Mastodon than ever on Twitter. So not really much keeping me about tbh just want to be able to see things such as Minecraft info or sometimes put out a thought. Also some of my contacts only speak through Twitter as of the moment.
You don’t buy a heavily liberal swayed network and flip it heavily conservative. All of your advertisers will have an issue and it takes a long time to bring in new advertisers that like the new direction.
That’s like buying Truth Social and banning Trump.
P.S. I can’t stand Twitter. Never liked it, never will.
Hell lets be honest here, I think many advertisers do sway more heavily conservative but the problem is advertisers want stability. Elon basically opened the flood gates to let anything go (as long as he agrees with them) and that created massive change at once. So you have to play the game of pandering to your audience who are likely going to be on the left just due to the left being a far more numerous group and no big advertiser would want an ad anywhere near a racial tirade. Like the higher ups of these corporations can and may be incredibly racist but you don't want your brand associated with it since you basically cut off a sizeable part of your market in the space you are trying to advertise. At the end of the day they want money and they don't want to rock the boat visibly.
"heavily liberal" citation required
Depends on your understanding of the word "liberal", my understanding of that word as a Brit seems to be entirely different to Americans.
You don’t buy a heavily liberal swayed network and flip it heavily conservative.
That was never the point. The point was that it would either change, or die from the $13bn debt the purchase saddled Twitter with.
- Musk paid $26 bn, underwritten by Tesla stock.
- $5 bn was from other investors, including a Saudi prince.
- $13 bn was a loan Twitter took out to buy itself on Musk's behalf.
The "heavy debt" that drives Twitter's cashflow into the negative is a direct result of the purchase.
I have to disagree because I feel “the point” is profitability. My comment shows a direct issue with profitability when liberal-swayed advertisers have to exit because of a network’s new direction.
I do understand your argument though. That’s another massive layer that will be impossible to overcome.
Elon Musk being honest: Twitter numbers and financials are down bc I bought the company and ran it down
Good.
Also, because there seems to be "some kind of moron running it"
Heavy debt, he caused by overpaying for Twitter with loans with high interest rates. And now Twitter needs to somehow "make a profit".
Good. I hope things get worse for him.
Is it possible this is all an elaborate scam to steal billions from his private investors like The Producers when the entire network collapses?
Don't be a loser, be a winner, sign up for Blue level Twitter!
No. He paid the majority out of pocket, with only 13 out of 44 billion being loans.
Imagine how much money they would be losing if they didn't stop paying their bills.
weird flex but ok
What a dumbass.
I'm so excited!