Categories: Media & Entertainment

Twitter revenue plummets 40% as Elon Musk nears payment deadline

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.

Aditya Krishnan

Recent Posts

Generative AI cannot replace physical meetings

ET Edge recently had a conversation with Amit Adarkar, CEO of Ipsos India, about the…

14 hours ago

Lenovo and AMD forge new frontiers in hybrid AI to deliver unmatched performance

Lenovo Group announced a comprehensive new suite of purpose-built AI-centric infrastructure systems and solutions to…

14 hours ago

A rare complication: AstraZeneca, TTS, and the importance of open dialogue

As the scientific community celebrates the remarkable achievements of Covid-19 vaccines, a recent development involving…

15 hours ago

IvyCap Ventures closes fund III at INR 2100 crore, focused on Alumni ecosystem investments

The Fundraise of USD 250 Mn, has taken the company’s total Assets Under Management to…

15 hours ago

Tiger Tyagarajan joins MathCo as a board member

MathCo, a leader in enterprise artificial intelligence (AI) and analytics, today announced the appointment of…

20 hours ago