Three months after taking management of Twitter, Elon Musk is adopting a much less pessimistic tone about the way forward for the social community, which he defines because the Town Square of our time.
A couple of weeks in the past, the billionaire was fearful in regards to the monetary well being of the platform, which noticed an exodus of advertisers, whereas promoting income constituted 91% of Twitter’s income within the second quarter. The relaxation was subscriptions.
The firm has not posted its third quarter outcomes. As a non-public firm now, it was delisted and subsequently now not has a authorized or regulatory obligation to publish its outcomes.
In the midst of the advertiser exodus, Musk mentioned “the company is losing over $4M/day.” He reiterated that pessimistic view throughout a Twitter Spaces on December 20. He mentioned that the platform was on monitor to hit $3 billion in detrimental money circulate earlier than the drastic price cuts he made. At least 5,000 of the corporate’s 7,500 staff, when he arrived, have been fired or left.
Like most social networks, promoting is bread and butter for Twitter, however many manufacturers shunned the platform, ready to see the place Musk was going by way of content material administration coverage.
The billionaire, who defines himself as a “free speech absolutist,” believes that any message is appropriate on the platform so long as it doesn’t violate the regulation. As a outcome, he reactivated many of the accounts, typically extremist, banned by the outdated administration as a result of they violated the safeguards put in place to stop the social community from turning right into a “hellscape.”
For many advertisers, Musk’s laissez-faire method dangers spouting hate and xenophobia on the platform, a danger they do not need to take, having their manufacturers related to such messaging.
Musk, nonetheless, has mentioned there was a pointy drop in hate speech since he took over, however some teams argue in any other case.
“There are about 500M tweets per day & billions of impressions, so hate speech impressions are
To limit the weight of advertising in Twitter’s income, Musk, who must also pay considerable interest on the debt of $13 billion that he contracted personally to finance the Twitter deal, wanted to reinvent Blue, the platform’s subscription service.
He integrated the checkmark, which means that an account has been verified, to Blue and increased the price to $7.99 per month, also adding other features. The problem is that these changes were disrupted by the appearance of numerous impostor accounts, which forced Musk to suspend new signups to Blue for many weeks. Companies, like pharmaceutical giant Eli Lilly and defense company Lockheed Martin, have seen impostor accounts posting messages impersonating them.
‘Twitter Isn’t Secure Yet’
According to Bloomberg News, the Techno King layered a significant amount of high-interest debt on Twitter’s balance sheet as part of his buyout. The company’s debt load swelled to about $13 billion — up from $1.7 billion pre-deal — and it’s now facing annual interest payments approaching $1.2 billion.
Its borrowing could get even more expensive because the interest rates on about half of that debt aren’t locked in and will rise with the market.
But Musk, who announced his resignation as CEO of Twitter, now says things aren’t so dire financially. The financial situation of the social network is improving, the billionaire has just said.
But the specter of chapter will not be fully dominated out.
“We’ve gotten the bills (of Twitter) beneath management, so the corporate’s not like on the quick lane of chapter anymore,” the billionaire said during the All-In Podcast on December 24. “And we’re releasing options sooner than Twitter’s historical past, concurrently having contained the prices and, and diminished the fee construction by an element of three, possibly, possibly 4.”
He subsequently reiterated this cautious optimism with an analogous message posted on the platform slightly later.
“Twitter isn’t safe but, simply not within the quick lane to chapter,” the serial entrepreneur said. “Still a lot work to do.”