Elon Musk says Twitter is still losing money because advertising has fallen by half.
In response to a tweet offering business advice, Musk tweeted Saturday, “We’re still negative cash flow because ad revenue is down (about) 50% and debt is high.”
“We need to be cash flow positive before we can afford the luxury of anything else,” he concluded.
Since he took over Twitter Musk attempted this in a $44 billion deal last fall Reassure advertisers who worried about the ousting of top executives, widespread layoffs, and a different approach to content moderation. Some prominent users who had been banned were admitted back on the page.
In April, Musk said that most of the advertisers who had left the company had returned and that the company could be cash flow positive in the second quarter.
In May, he hired a new CEO, Linda Yaccarino, an NBCUniversal executive with deep ties to the advertising industry.
But since then, Twitter has angered some users with pushiness new frontiers It was about how many tweets they can see in a day and some users complained about being banned from the site. Musk said the restrictions are necessary to deter trespassers Scraping potentially valuable data.
Twitter got a new competitor this month when Facebook owner Meta launched a text-oriented app, Threads, and won Tens of millions of registrations in a few days. Twitter replied by threatened legal action.