Since Musk completed the acquisition of Twitter in October 2022 for 44 billion dollars, there has been a mass exodus of advertisers.
Elon Musk’s initial interest payment due date draws near as Twitter’s revenue falls 40 percent, according to a tweet on Platformer. The interest payment on the debt taken by Musk for purchasing Twitter is due by the end of January. It has been speculated that the Twitter CEO might be compelled to sell his Tesla stocks at a high cost in order to meet the deadline. Since Musk completed the acquisition of Twitter in October 2022 for 44 billion dollars, six months after commencing the takeover in April, there has been a mass exodus of advertisers.
According to analysts, the plan to monetise blue ticks which verifies the authenticity of individual and company accounts at 8 dollars has failed to generate revenue for the social media giant. This scheme resulted in many scammers and trolls impersonating various companies on Twitter. Many corporate advertisers also fled the platform due to concerns regarding the new content moderation policies, according to USA Today. However, Musk managed to convince some advertisers to return by providing heavy discounts. The 8-dollar payment is for the premium subscription which provides users with a battery of features apart from the blue tick mark.
Twitter recently reversed its 2019 ban on political ads and company representatives mentioned that the platform’s advertising policy for “cause-based ads” in the United States would be relaxed and aligned with the policies of television and other media outlets. The California based social media entity is the brainchild of Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams, and was launched in July 2006.