Posted on 07/16/23
| News Source: i24
Policy changes introduced by Musk and technical failures are leading to users fleeing to other platforms
Elon Musk said Saturday that Twitter has lost nearly half of its advertising revenue.
The social media platform has been losing users and advertisers since the American billionaire purchased it for $44 billion last year.
"We're still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load," Musk said in a post, responding to a user who was giving suggestions on financing for the platform.
"Need to reach positive cash flow before we have the luxury of anything else," he added.
Policy changes introduced by Musk and technical failures are leading to users fleeing to other platforms. Over 100 million users signed up to a new app launched by Facebook parent Meta, Threads, which is seen as a rival to Twitter. Musk has threatened to sue Meta for stealing trade secrets and intellectual property.
On Thursday, he announced that Twitter started paying popular users who have Twitter Blue and earned over 5 million tweet impressions for a share of the ad revenue earned from ads served in the replies to their posts. According to Musk, the first round of creator payouts will total $5 million.