It’s been 10 months since Elon Musk bought Twitter and it’s been not anything however a monotonous journey. The first few months have been all about sacking folks left, proper and centre. And, in fact, there was once this hullabaloo over Twitter Blue, Things by no means appeared to have settled down however in April this 12 months, Musk proclaimed that each one advertisers have been again. However, that gave the impression to be short-lived as Musk in a tweet admitted Twitter having fairly a couple of monetary problems.
In a respond to a tweet, Musk mentioned that “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load.” He additionally mentioned that Twitter must “reach positive cash flow before we have the luxury of anything else,” he added.
The heavy debt load comes from the money Musk borrowed to acquire Twitter. It has been reported that Twitter pays close to $1.5 billion in annual interest payments.
Other sources of revenue
Earlier this year, Musk hired Linda Yaccarrino as the new CEO of Twitter. Musk and CEO Yaccarino said in an investor presentation last month that the social media company is now planning to focus on videos, creator and commerce partnerships to bolster the company’s business. As per a report by The Financial Times, one of the slides said that vertical video accounted for more than 10% of time spent on Twitter. Musk had also announced that a Twitter video app for smart TVs was also coming. While replying to a person who said that he would like to watch an hour-long video on smart TV and not on Twitter app, Musk replied, “It’s coming”.
According to the file, the manager government is in talks a couple of broader partnership with Google that would come with promoting and get right of entry to to a few of Twitter’s information.
In a respond to a tweet, Musk mentioned that “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load.” He additionally mentioned that Twitter must “reach positive cash flow before we have the luxury of anything else,” he added.
The heavy debt load comes from the money Musk borrowed to acquire Twitter. It has been reported that Twitter pays close to $1.5 billion in annual interest payments.
Other sources of revenue
Earlier this year, Musk hired Linda Yaccarrino as the new CEO of Twitter. Musk and CEO Yaccarino said in an investor presentation last month that the social media company is now planning to focus on videos, creator and commerce partnerships to bolster the company’s business. As per a report by The Financial Times, one of the slides said that vertical video accounted for more than 10% of time spent on Twitter. Musk had also announced that a Twitter video app for smart TVs was also coming. While replying to a person who said that he would like to watch an hour-long video on smart TV and not on Twitter app, Musk replied, “It’s coming”.
According to the file, the manager government is in talks a couple of broader partnership with Google that would come with promoting and get right of entry to to a few of Twitter’s information.