Headline Roundup • July 17th, 2023
Twitter's Ad Revenue Down Almost 50% Since Elon Musk Takeover
Summary from the AllSides News Team
On Saturday, Elon Musk reported that Twitter's advertising revenue was down almost 50% since his $44 billion buy last October.
Key Details: Musk said Twitter didn't achieve expected increases in sales in June, but that July looked more promising. The platform is facing pressure from Meta's Threads, which has over 100 million users since launching earlier this month.
Key Quote: Musk tweeted: "We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else."
For Context: In April, Musk told the BBC (Center bias) that most of Twitter's advertisers had returned, and that the platform was "roughly breaking even." A number of advertisers had begun to leave Twitter after some previously-banned accounts were reinstated, and after about 80% of the staff was laid off.
How the Media Covered It: Sources on both the right and the left noted the contrast between Musk's positive statements in April and his current tone.
Featured Coverage of this Story
Nathan Laine/Bloomberg via Getty Images, File / Getty Images
Elon Musk revealed Saturday that Twitter’s cash flow is still negative due to a drop in advertising on the site and a "heavy debt load" following his $44 billion buy last year.
"We’re still negative cash flow, due to — 50% drop in advertising revenue plus heavy debt load," the Tesla and SpaceX CEO, who is Twitter’s executive chairman, said in response to a user who suggested the platform recapitalize. "Need to reach positive cash flow before we have the luxury of anything else."
Advertisers began to leave the platform after he...
Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow.
The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”
The tweet is in stark contrast to his tone in April, when Musk told the BBC the platform is now “roughly breaking even” and that most of its advertisers have returned.
Ad revenue has been a contentious issue...
Reuters
Twitter has lost almost half of its advertising revenue since it was bought by Elon Musk for $44bn (£33.6bn) last October, its owner has revealed.
He said the company had not seen the increase in sales that had been expected in June, but added that July was a "bit more promising".
Mr Musk sacked about half of Twitter's 7,500 staff when he took over in 2022 in an effort to cut costs.
Rival app Threads now has 150 million users, according to some estimates.
Its in-built connection to Instagram automatically...
