Elon Musk announces that Twitter’s ad revenue has fallen

ensonhaber.com

Twitter, owned by Elon Musk, says it’s battling the Threads platform, which has been carried out by Meta not too long ago and has seen a speedy improve in members not too long ago.

The adjustments Musk made to the platform negatively affected Twitter’s revenues.

Musk, Twitter’s chief know-how officer, mentioned money movement on the social media firm remained unfavorable.

Promoting revenues down, money movement unfavorable

musk, “Our unfavorable money movement continues resulting from an almost 50 % drop in ad revenue and a heavy debt load.” mentioned.

tech billionaire, “We should attain constructive money movement earlier than we have now one other luxurious.” he added.

Twitter sells Tesla shares

The Tesla and SpaceX CEO took over Twitter final yr with a $44 billion acquisition that contains almost $13 billion in debt.

Elon Musk had offered billions of {dollars} of Tesla shares to partially fund this deal.

In current days, Twitter has begun distributing a few of its ad revenue to draw content material creators.

Causes of earnings discount

A whole bunch of advertisers have minimize or stopped their ad spend on Twitter in response to Musk’s drastic employees cuts and adjustments to the platform.

The re-activation of beforehand banned accounts and the change in content material moderation strategy had been efficient on this growth.

He owes his workers $500 million

However, Twitter is alleged to have refused to pay a minimum of $500 million in severance pay to hundreds of workers who had been laid off after Elon Musk purchased the corporate.