Twitter lost half of its advertising revenue after changing ownership, Elon Musk admitted.

Elon Musk, owner of the social network Twitter, revealed this weekend that the company has lost half of its ad revenue since he bought it for $44 billion in October 2022.

He also said that the platform did not experience the increase in sales that was expected in June, although he added that July was “somewhat more promising.”

Musk fired about half of Twitter’s 7,500 employees to try to cut costs.

Its competitive meta app, Threads, already has 150 million users by some estimates, after just over a week after release.

Reuters
Threads and Twitter compete for the leadership of microblogging social networks.

By connecting to Instagram, Threads has automatic and potential access to its 2 billion users.

In the meantime, Twitter is struggling with a heavy debt load, and according to Musk, the flow of funds remains in the red.


“We need to get positive cash flow before we can afford anything else,” the billionaire tweeted.

A change that “will take time”

Lucy Coutts, chief investment officer of JM Finn, an asset management firm, told BBC Today that she thought Musk would turn the tide on Twitter, “although it will take longer.”

“But unfortunately, he has a debt of 13,000 million US dollars, which must be paid before the end of July.therefore, we will see more pressure on Tesla shares if Musk has to sell more of his stake in this company, ”Coutts added.

Musk is also the chief executive officer and major shareholder of Tesla, an electric vehicle maker.

Elon Musk in a thoughtful pose during a conference.

Reuters
Experts point out that Twitter’s financial problems existed before Musk’s acquisition.

growth strategies

After laying off thousands of employees and slashing cloud bills, Musk said Twitter is on track for a record. revenue of $3 billion in 2023below US$5.1 billion in 2021.

The losses indicate that aggressive cost-cutting measures were not enough to win back many advertisers who left the platform following changes to content moderation policies.


During an interview with the BBC in April, Musk suggested that most advertisers have already returned to the platform.

However, Megana Dhar, former head of partnerships at Snap and Meta, points out that many of Twitter’s problems predated Musk’s arrival.

“Elon and Twitter are in trouble right nowTo be fair, though, we’ve seen this drop in Twitter’s growth and revenue even before the purchase. There has been a kind of steady decline.”

Linda Iaccarino, a former head of advertising at NBCUniversal, was hired as chief executive of Twitter in June, indicating that advertising sales remain a top priority for the company.

Iaccarino commented on Twitter’s plans to focus on video partnerships, creators and commerce. The company is reportedly negotiating deals with figures in politics and entertainment, payment services, media and news sites.

Dividing gray line.

BBC

Please be aware that you may receive notifications from BBC Mundo. Download the latest version of our app and activate them so you don’t miss out on our best content.

Author: BBC news world
Source: La Opinion

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Anuel A.A. and Yaylin La Mas Viral allegedly got into a fight over possible cheating

It's not the first time Yaylin La Mas Viral charged with physical assault. However, this time with Anuel Aa already owns Chivirica, who...

Amazon Black Friday 2022 Advance Deals: 4 Men’s Probiotics Over 20% Off

Probiotics are live microorganisms that provide good bacteria to the intestinal flora. improve your digestive system, boost your immune system, heart health, and nutrient...

Opel Vivaro-e Hydrogen, 3 minutes is enough for a full tank of hydrogen October 29, 2022 18

Stellaantis is also betting fuel cell in addition to electricity, to decarbonize the transport sector. In particular, the Group intends to use this...