In July, Musk tweeted about Twitter / X’s financial situation, saying, “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load.”
Advertising could be up two fold for all it matters. You sack a company that last turned an annual profit in 2019 with $44B in debt, it won’t matter if Musk is shitting gold bricks. You can’t pay that size of debt off fast enough. To just get started on that debt Musk would need to make Twitter twenty times more profitable than their 2019 profit. And even then that debt is going to be a monkey on his back for forty years in ideal conditions.
That $44B isn’t chump change for Twitter, like maybe if Tencent took a sudden $44B debt they’d make good on it, but they’re wildly profitable. Twitter barely gets by and has only gone on this long because of the Tech Bro funding that all but dried up when the interest rates were going up.
I can’t wait to see how his offer to pay people’s legal bills who get in trouble at work for saying problematic shit on his platform works out
Alot like Trumps promise to do the same thing would be my guess
The last thing Twitter needs right now is to find more clever and creative ways to spend money, especially on other peoples legal problems
Twitter wasnt saddled with 44B in debt, That was the purchase price, which included $13B in debt
only chance is if they go hardware i think (edit: have any of you heard of diversification)
what?
You know how some companies make vibrating dildos? Twitter should do that.
So it’ll vibrate every time someone says “woke” on the platform?
They’ll randomly go off in luggage so they get disposed of by a bomb squad?
Who said hardware can’t be a valid recurring revenue model?
You know, like the Gavin Belson Signature Box III.
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I’m open-source, check me out at GitHub.
Hardware? Hardware was never profitable. It’s a gateway to spending more money on proprietary software.
Unless you’re Nintendo, they have their cake and eat it too.
IDK, I imagine they’re online service is pretty profitable.
Hardware… what?
Chat, banking, stock trades, and lawn mowers
Imagine paying a subscription just to be eligible for ad revenue coming from impressions of your own content. Literal cucks.
Imagine paying a subscription just to be eligible for ad revenue coming from impressions of your own content. Literal cucks.
If you can pay $8 a month and make $5k a month from that $8, how exactly does that make someone a cuck?
the dead bird looks like sonic the hedgehog
…doing duck lips…
This looks like Sonic the Hedgehog
That’s my offering
Twitter*
The blue bird being killed by the X is such a fitting graphic.
thought it was sonic
gotta die fast
What’s funnier is it was already dying. It hasn’t made any actual positive revenue since 2019 and then Musk dumped another $44B in debt on top of it. It really never had a chance and I think his original bid was either a troll he never intended to follow through with, or he was banking on leveraging all the blockchain and NFT stuff that recently also shit the bed. Either way, he’s fucked himself out of at least a small chunk of his fortune. Well, at least until the rest of the market catches Tesla and their hyper inflated market cap finally also goes sideways.
Musk dumped another $44B in debt on top of it.
He bought it for $44B, he didn’t put $44B in debt on it.
Mac wants the flamethrower!
Elon can’t deliver on a promise. I’m shocked.
Still waiting for the hyperloop…
FSD $20k Tesla Roadster 2 Cybertruck Solar Roof that costs same as new roof + solar panels Unmanned assembly line Etc
He cannot even manage to pay the rent due on the office space. Hardly a shocker that he’s having trouble paying the revenue-sharing bills as well.
Should’ve said he’d pay them in
RedditCoinTwitterCash, so he can set his own withdrawal requirements and exchange rates.
I have immense difficulty feeling sorry for any of the members of Elon’s Rent-a-Fascist program. He’s a huckster, everyone knows he’s a huckster, and the people who don’t or refuse to believe it will have to learn that lesson the hard way.
This is the best summary I could come up with:
In news that isn’t very surprising given the recent history of Twitter, which Elon Musk is currently rebranding to X, the company won’t be able to make some promised payments on time.
That’s not exactly what you’d want to hear from a program touting itself as “part of our effort to help people earn a living directly on X,” and the key to Elon Musk’s X dream for an app that handles banking, stock trading, and other vital financial features.
Musk announced the revenue-sharing plan in February, and the company sent out the first round of payments for eligible accounts (with paid verification via Twitter Blue or Verified organizations, 15 million “organic” impressions in the last three months, and at least 500 followers) a couple of weeks ago before opening up registration to more people.
However, hearing that payments aren’t arriving is familiar news to a number of people and organizations involved with X / Twitter since Musk’s takeover.
A Wall Street Journal article in February counted nine lawsuits covering $14 million in unpaid bills at the time.
In July, Musk tweeted about Twitter / X’s financial situation, saying, “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load.”
I’m a bot and I’m open source!
Elon is directly and personally responsible for both the acquisition of massive and unsustainable debt and for the cratering of cash flow through loss of advertisers.
But definitely trust them with your money! They’re gonna be a bank!
Can’t or won’t? It’s won’t. Elon could pump a couple of million in to supplement shortfalls within a day maximum, if he wanted to.
This belongs in !enoughmuskspam@lemmy.world
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