Elon Musk Says Twitter Is Losing Cash Because Advertising Is Down

Elon Musk says Twitter remains 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 detrimental money stream, as a result of (a couple of) 50% drop in promoting income plus heavy debt load.”

“Want to achieve constructive money stream earlier than we now have the luxurious of the rest,” 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 in regards to the ouster of prime executives, widespread layoffs and a special strategy to content material moderation. Some high-profile customers who had been banned have been allowed again on the location.

In April, Musk stated a lot of the advertisers who left had returned and that the corporate may change into cash-flow constructive within the second quarter.

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

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 location. Musk stated the restrictions have been wanted to stop unauthorized scraping of probably helpful information.

Twitter bought a brand new competitor this month when Fb proprietor Meta launched a text-focused app, Threads, and gained tens of tens of millions of sign-ups in a number of days. Twitter responded by threatening authorized motion.