Elon Musk says Twitter cash flow is negative due to ad revenue declines, 'heavy debt'
www.cnbc.com
Musk said early Saturday that cash flow at Twitter remains negative because of a nearly 50% drop in advertising revenue coupled with "heavy debt."
  • TWeaK@lemm.ee
    3·
    1 year ago

    You don’t buy a heavily liberal swayed network and flip it heavily conservative.

    That was never the point. The point was that it would either change, or die from the $13bn debt the purchase saddled Twitter with.

    • Musk paid $26 bn, underwritten by Tesla stock.
    • $5 bn was from other investors, including a Saudi prince.
    • $13 bn was a loan Twitter took out to buy itself on Musk’s behalf.

    The “heavy debt” that drives Twitter’s cashflow into the negative is a direct result of the purchase.

    • Tygr@lemmy.world
      22·
      1 year ago

      I have to disagree because I feel “the point” is profitability. My comment shows a direct issue with profitability when liberal-swayed advertisers have to exit because of a network’s new direction.

      I do understand your argument though. That’s another massive layer that will be impossible to overcome.