On Saturday, Elon Musk, the owner and CTO of Twitter, stated that the firm's cash flow remains negative in spite of a nearly 50% decrease in advertising revenue and the accumulation of a considerable debt when it was taken over by him last year in a $44 billion purchase deal of which $13 billion was debt. Twitter has recently started to provide a portion of its ad income to specific content producers on its website.
Tesla and SpaceX CEO Elon Musk, who is also CTO and executive chairman of Twitter, stated early Saturday morning that since there had been a great decrease in advertising revenue in addition to "heavy debt," they have not yet attained positive cash flow. Musk acquired Twitter in October of 2020 for a transaction worth somewhere around $44 billion, which included an estimated $13 billion in debt. Because of the modifications Musk implemented, particularly with regards to restoring blocked accounts and changing the platform's content moderation stance, more than three hundred advertisers reduced or ceased their ad expenditures on the social media platform in January. In April, Musk commented to a BBC journalist that "almost all" advertisers had resumed advertising on Twitter, and he assumed the firm would be cash flow positive by the next quarter.
The designation of Linda Yaccarino, previously in charge of global advertising for Comcast's NBCUniversal, as Twitter's CEO in the recent weeks stirred up confidence amongst media industry insiders that the ad business dilemmas would be addressed. Soon after, Twitter initiated a revenue-sharing system with certain content developers on its platform. Musk's comments were in response to individuals inquiring why the scheme was so restricted. Specific accounts with a high follower count posted that they were disappointed to not be eligible to earn income from the program yet. As The Verge formerly reported, the money-sharing approach was only accessible to users who bought a Twitter Blue validated subscription, and the payments were "guided by ads placed in the replies to tweets."
Influencer Andrew Tate posted that Twitter gave him more than $20,000. Other influencers, including those of the right-wing persuasion, and those supporting Tesla stocks and products, such as Omar Qazi ("@WholeMarsBlog" on Twitter) and Sawyer Merritt, revealed that they had earned over $5,000. Renowned influencers, like Brian and Ed Krassenstein, Mr. Beast and the account @interneth0f (which stands for Internet Hall of Fame), announced how much they'd gained from Twitter. Although it is unknown how much Twitter compensated developers in the first round of payments overall, Twitter delivered an automated response that included a crude emblem in reply to CNBC's request for a statement on Saturday. X Corp., the parent company of Twitter, is currently dealing with a multitude of legal actions against former employees and vendors because of unpaid bills and severance.
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