Twitter‘s advertising revenue has plummeted by approximately 50 percent since Elon Musk acquired the social media platform last October for a staggering $44 billion.
In response to a user’s suggestion on financing options for the struggling company, Musk revealed the financial challenges they were facing.
“We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load,” the billionaire tweeted.
The situation appears to be dire for Twitter, as Insider Intelligence predicts that the platform’s earnings for 2023 will be less than $3 billion, a one-third decrease from the previous year.
Since Musk’s takeover, his implementation of various changes has alienated both users and advertisers, exacerbating the company’s woes.
Earlier this month, Musk announced restrictions on Twitter’s features.
Verified accounts were limited to reading only 10,000 tweets per day, while non-verified users were restricted to 1,000 tweets.
Moreover, new unverified accounts faced an even more stringent limit of 500 tweets. Additionally, starting next month, popular program TweetDeck will only be available to “verified” users.
Twitter sues Meta’s Threads
As Twitter struggles to regain its footing, its competition is capitalising on the platform’s misfortunes.
Meta’s Threads, launched as a rival to Twitter, attracted over 100 million users in just five days, posing a significant threat to Twitter’s user base.
Although Twitter boasts around 200 million regular users, the platform has been plagued by technical failures since Musk’s acquisition, compounded by massive layoffs.
In a further blow to Twitter, Musk has threatened to sue Meta, accusing the company of stealing trade secrets and intellectual property. However, Meta has refuted these claims, denying any wrongdoing.
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