Elon Musk, the owner of Twitter, claims that the Twitter, the social media site he paid $44 billion for in October has lost around half of it’s advertising revenue.
In a tweet, the billionaire wrote in response to a user who offered ideas for funding the network.
He continued without offering any further details:
“We’re still negative cash flow, due to a 50% drop in advertising revenue plus heavy debt load.”
“Need to reach positive cash flow before we have the luxury of anything else,”
Insider Intelligence predicted that Twitter’s revenue in 2023 would be less than $3 billion, representing a one-third decrease from 2022.
Since taking control of Twitter, Musk has made changes that have alienated users and advertisers.
Elon Musk said earlier this month that Twitter would only allow verified accounts to see 10,000 messages daily.
The maximum number of tweets that non-verified users, or free accounts, can read in a day is 1,000.
Twitter caps the number of tweets from new, unverified accounts at 500.
A few days later, Twitter said that starting next month, only “verified” users will have access to TweetDeck, a popular programme that lets users watch many accounts simultaneously.
When Threads, a Twitter competitor app introduced by Facebook parent Meta, gained over 100 million users in its first five days, the adjustments were made.
Twitter, estimated to have 200 million regular users, has experienced technical difficulties since Musk purchased the service and terminated hundreds of employees.
Elon Musk has vowed to sue Meta for allegedly stealing trade secrets and intellectual property despite the company’s denials.
cc: Daily Trust Ng
