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‘Twitter’s Cash Flow Is Negative,’ Elon Musk Admits

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'Twitter's Cash Flow Is Negative,' Elon Musk Admits

(CTN News) – Just months after the billionaire CEO of Twitter, Elon Musk, admitted a loss in ad revenue and negative cash flow as a result of the acquisition of the social media giant. Musk officially acquired in October of last year.

Due to the substantial debt that the microblogging site owes and the substantial decline in advertising revenues over the past several years, the business magnate acknowledged that the site is experiencing negative cash flow.

In response to a Twitter user, Sophie, Musk admitted that he had no idea how to run the website, which she said Musk needed to find a consortium that understood his vision for it.

She continued, “… and have them buy the debt, and then do a tender/exchange offer for convertible notes with more favorable terms, if they want to buy the debt.

According to her tweet, the tycoon replied, “We’re still in the red because of a 50% drop in advertising revenue and the heavy debt load we’re carrying,” he wrote in response to her tweet.

The CEO of Twitter, Elon Musk, said that before considering other initiatives for Twitter, it must be able to achieve positive cash flow first.

Following user complaints, Twitter’s owner also announced that verified Twitter accounts will be able to send out up to 50% more tweets per day as a response.

As a result of Musk’s acquisition of the bird app, several major advertisers have temporarily suspended their spending on the platform due to concerns over the possibility of changes brought about by Musk.

However, earlier this year Space X’s CEO revealed that many of these advertisers had returned, expressing confidence in the company’s ability to achieve positive cash flow within a short period of time and that it was on the verge of becoming profitable.

According to market research firm Sensor Tower, over the past two months, Twitter’s advertising spending has decreased by 89% to $7.6 million, a decrease of 89% from the $7.9 million spent during the same time frame last year.

During the period of September to October 2022, the top 10 advertisers in the country had spent $71 million on ads prior to Musk taking over.

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