While talking to BBC, Elon Musk revealed that Twitter continues to face financial challenges, with negative cash flow due to a significant decline of 50% in advertising revenue and substantial debts.
Despite implementing aggressive cost-cutting measures since assuming control of the social media platform, Musk had anticipated a positive cash flow by June, which has not been achieved. This situation underscores the ongoing financial strain faced by Twitter under Musk’s leadership.
According to Elon Musk, Twitter is expected to generate $3 billion in revenue, representing a notable decrease from the $5.1 billion recorded in 2021. This decline can be attributed to advertisers distancing themselves from the platform following its more relaxed approach to content moderation.
Advertisers expressed concerns about their ads appearing alongside inappropriate content, leading to their reluctance to invest in Twitter advertising.
In a recent development, Elon Musk appointed Linda Yaccarino, a former advertising executive at Comcast’s NBCUniversal, as the new CEO of Twitter. This move suggests that Twitter is placing significant emphasis on ad sales, despite its ongoing efforts to bolster subscription revenue.