Twitter lost 50% of its ad revenue, Elon Musk admits

• Financial

As Musk stated in March, Twitter should be able to generate positive cash flow by June.
Clearly, Musk's cost-cutting efforts since buying Twitter in the fall of 2022 have not been enough to push earnings to desired levels.

Additionally, Musk's April prediction of a quick recovery of advertising revenue doesn't seem to be accurate. During the interview with the BBC, he said most advertisers have returned. Lack of moderation led to advertisers declining It has been alleged that Twitter does not moderate enough content.

Thus, many advertisers removed their ads since they didn't want their ads to appear next to inappropriate material Earlier this week, Musk tweeted that Twitter must achieve positive cash flow before it can consider recapitalization proposals.

A 50 percent decline in advertising revenue was initially unclear based on Musk's statement. The company was projected to generate $3 billion in revenue by 2023, an increase from $5.1 billion in 2021.

A $44 billion deal was reached between Musk and Twitter

Following his termination of the project in October 2022 due to allegedly fake user accounts, Musk bought Twitter for about $44 billion in October 2022.

After Musk took over Twitter's leadership, he publicly floated the company and fired thousands of employees, including most of the senior management. Additionally, Musk is the founder and CEO of electric car company Tesla. Elon Musk is a man with a vision and great ideas.

However, he is human just like everyone else, and sometimes he can make bad moves. It will be interesting to follow the development of the situation regarding Twitter, considering that a lot has happened since he took over the company.

The future will certainly bring new stories. We have no doubt that Elon Musk has a solution for every problem. It is also interesting that Musk received competition in the form of Threads, Meta's latest platform that is breaking records. Many consider it an application almost identical to Twitter.