Musk Says Twitter Is Dropping Money As a result of Promoting Is Down and the Firm Is Carrying Heavy Debt

Elon Musk says Twitter continues to be dropping money as a result of promoting has dropped by half.

In a reply to a tweet providing enterprise recommendation, Musk tweeted Saturday, “We’re nonetheless unfavorable money circulate, on account of (a few) 50% drop in promoting income plus heavy debt load.”

“Want to succeed in constructive money circulate earlier than we have now the posh of anything,” he concluded.

Ever since he took over Twitter in a $44 billion deal final fall, Musk has tried to reassure advertisers who have been involved concerning the ouster of prime executives, widespread layoffs and a unique method to content material moderation. Some high-profile customers who had been banned have been allowed back on the site.

In April, Musk mentioned a lot of the advertisers who left had returned and that the corporate would possibly develop into cash-flow constructive within the second quarter.

In Could, he employed a brand new CEO, Linda Yaccarino, an NBCUniversal government with deep ties to the promoting trade.

However since then, Twitter has upset some customers by imposing new limits on what number of tweets they’ll view in a day, and a few customers complained that they have been locked out of the positioning. Musk mentioned the restrictions have been wanted to forestall unauthorized scraping of potentially valuable data.

Copyright 2023 The Associated Press. All rights reserved. This materials will not be revealed, broadcast, rewritten or redistributed.