Elon Musk has executed every technique to revamp Twitter, but he has not met with great success! The platform’s value has plummeted since Musk made the historic $44 billion purchase. However, the daily user count has decreased due to new policy changes and user interface tweaks. Since the beginning of the billionaire’s new endeavor, advertising revenue, which has been the prime source of income, has been affected.
Recently, Mark Zuckerberg introduced Threads, a new meta-platform embedded in Instagram that resembles a little Twitter. The platform has received a high response since it was launched on July 5, 2023. Many Twitter users also switched to Threads due to the increasing restrictiveness of the platform. This caused a rift between Elon Musk and Mark Zuckerberg. Now, the ex-CEO of Twitter has given an update on the performance of the platform.
Elon Musk Updates About Twitter’s Heavy Debt Load Due To Low Revenue
Since Elon Musk bought Twitter for $44 billion, the billionaire has been facing many critical financial hurdles. After advertisers quit advertising products on the platform, it lost a huge amount of money. Musk even implemented mass layoffs to reduce the intensity of the blow.
Recently, The New York Times updated readers about the diminishing revenue on Twitter. The media outlet wrote that from April 1 to May’s first week, the platform’s U.S. revenue was $88 million.
We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) July 15, 2023
Now, Elon Musk admits that there is negative cash flow in the company due to reducing advertising revenue. On July 15, 2023, Elon Musk took to Twitter and wrote, “We’re still negative cash flow, due to -50% drop in advertising revenue plus heavy debt load.” He continued, “Need to reach positive cash flow before we have the luxury of anything else.”
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The Billionaire’s Lawyer Threatens To Sue Meta’s Threads
Mark Zuckerberg and Elon Musk were already in a war of words over a cage fight. Then, the fight intensified when Mark introduced Meta’s new initiative, Threads. Elon tweeted, writing, “Competition is fine, cheating is not.” As per CNN, the ex-CEO’s lawyer, Alex Spiro, threatened to sue the platform.
In a letter written to Meta, Alex Spiro accused them of committing “systematic, willful, and unlawful misappropriation of Twitter’s trade secrets and other intellectual property.”
The letter added, “Twitter intends to strictly enforce its intellectual property rights, and demands that Meta take immediate steps to stop using any Twitter trade secrets or other highly confidential information.”
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