Elon Musk points out that Twitter risks bankruptcy: “That’s not out of the question. Without significant subscription revenue, there’s a good chance Twitter won’t survive the economic slowdown. We need at least half of our subscription revenue.”
Musk, in his first corporate email, wrote: “Without significant subscription revenue, there’s a good chance Twitter won’t survive the impending economic downturn.” Just last week Musk said at an investor conference that Twitter could become the most valuable company in the world.
Yoel Roth, who led Twitter’s trust and security team and oversaw content moderation, resigned Thursday, multiple reports reported. Musk often cited Roth’s tweets, which explained moderation policies to reassure people concerned about the future.
Twitter risks bankruptcy: the features which Elon Musk can gring
Mus has pinned his hopes on a subscription model to lift Twitter’s financial fortunes, but the $ 8-a-month plan offered to get the blue ticks probably won’t help reduce the company’s debt.
Twitter owes $ 18.5 billion in debt, with Musk taking on about $ 13 billion in bank loans to fund its $ 44 billion deal. The billionaire new owner of Twitter told employees he expects Twitter to have negative net cash flow of several billion dollars in 2023, Information reported.
Musk reported a loss of $ 4 million a day for Twitter, as well as posting a tweet communicating a huge drop in revenue due to companies suspending advertising purchases on the platform, partly due to moderation issues. A situation that worsened on Thursday with Chipotle having withdrawn the ads.
Prior to the acquisition, Musk said he would address the problem of fake profiles and create a safer environment for advertising. Two weeks to do so is certainly not enough, but the decisions taken so far have spread further concerns among advertisers, leading them in many cases to suspend their advertising campaigns.
