Elon Musk acknowledges Twitter’s significant decline in revenue

• Elon Musk publicly acknowledges Twitter’s significant drop in advertising revenue and negative cash flow situation.
• Musk openly responds to user Sophie’s suggestion of forming a consortium to tackle Twitter’s challenges.
• Major advertisers temporarily halted spending on Twitter after Musk’s acquisition, but many have since returned.

After acquiring Twitter, Elon Musk has publicly acknowledged the platform’s significant drop in advertising revenue and its negative cash flow situation. This revelation comes months after the acquisition and highlights the challenges Twitter is currently facing.

During a Twitter exchange with a user named Sophie, who suggested that Musk assemble a consortium that aligns with his vision for the platform, Musk responded candidly. Sophie proposed that the consortium purchase Twitter’s debt and then initiate a tender or exchange offer for convertible notes with more favorable terms.

In reply, Musk acknowledged the financial struggles of Twitter, emphasizing its substantial debt and a substantial 50% decrease in advertising revenue as the main factors affecting its cash flow. This acknowledgment from the billionaire highlights the severity of the situation the social media company finds itself in.

Furthermore, Musk stressed the importance of Twitter achieving positive cash flow as a priority before considering any other initiatives. This indicates that addressing the financial challenges and stabilizing the platform’s revenue streams are of utmost importance in Musk’s strategic approach.

Overall, Musk’s acknowledgment of Twitter’s financial struggles, particularly its reduced ad revenue and negative cash flow, underscores the current difficulties the social media giant is facing under his ownership. It highlights the need for immediate measures to restore positive cash flow and stabilize the company’s financial situation.

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— sophie (@netcapgirl) July 13, 2023

Following user complaints, Twitter’s owner, Elon Musk, announced a 50% increase in the daily tweet limit for verified accounts.

After Musk’s acquisition of Twitter, major advertisers temporarily halted their spending on the platform due to concerns about potential changes introduced by Musk himself.

However, Musk revealed earlier this year that many of these advertisers had returned, expressing confidence in the platform’s progress towards achieving positive cash flow.

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Estimates from Sensor Tower indicated that advertiser spending on Twitter decreased significantly, dropping by 89% to $7.6 million over a two-month period.

Before Musk took over, the top 10 advertisers had collectively spent $71 million on ads between September and October 2022.