Elon Musk says Twitter cash flow is negative due to ad revenue declines, ‘heavy debt’
Elon Musk says Twitter cash flow is negative due to ad revenue declines, ‘heavy debt’
Musk said early Saturday that cash flow at Twitter remains negative because of a nearly 50% drop in advertising revenue coupled with "heavy debt."
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You don’t buy a heavily liberal swayed network and flip it heavily conservative. All of your advertisers will have an issue and it takes a long time to bring in new advertisers that like the new direction.
That’s like buying Truth Social and banning Trump.
P.S. I can’t stand Twitter. Never liked it, never will.
Hell lets be honest here, I think many advertisers do sway more heavily conservative but the problem is advertisers want stability. Elon basically opened the flood gates to let anything go (as long as he agrees with them) and that created massive change at once. So you have to play the game of pandering to your audience who are likely going to be on the left just due to the left being a far more numerous group and no big advertiser would want an ad anywhere near a racial tirade. Like the higher ups of these corporations can and may be incredibly racist but you don't want your brand associated with it since you basically cut off a sizeable part of your market in the space you are trying to advertise. At the end of the day they want money and they don't want to rock the boat visibly.
"heavily liberal" citation required
Depends on your understanding of the word "liberal", my understanding of that word as a Brit seems to be entirely different to Americans.
You don’t buy a heavily liberal swayed network and flip it heavily conservative.
That was never the point. The point was that it would either change, or die from the $13bn debt the purchase saddled Twitter with.
- Musk paid $26 bn, underwritten by Tesla stock.
- $5 bn was from other investors, including a Saudi prince.
- $13 bn was a loan Twitter took out to buy itself on Musk's behalf.
The "heavy debt" that drives Twitter's cashflow into the negative is a direct result of the purchase.
I have to disagree because I feel “the point” is profitability. My comment shows a direct issue with profitability when liberal-swayed advertisers have to exit because of a network’s new direction.
I do understand your argument though. That’s another massive layer that will be impossible to overcome.
"liberal-swayed advertisers" citation required
Are they "liberal-swayed" or do they just not want their ads appearing next to posts calling for the death of Jews?