Elon Musk, the owner of Twitter, declared this week that the social media network that he paid $44 billion for back in October had lost close to half of its ad income.
In response to a user’s proposal on platform funding, the billionaire said in a post that “We’re still negative cash flow, because of a 50% drop in revenue from advertising plus a significant debt load.”
Without giving any details, he said, “Need to get to positive cash flow before we can have the luxury of anything else.”
According to Insider Intel, Twitter was expected to make under $3 billion in 2023, a reduction of one-third from 2022.
Users and advertisers are both annoyed by the changes Musk has made since gaining control of Twitter.
Musk revealed earlier in the month that Twitter was restricting verified accounts to only reading 10,000 messages each day.
A maximum of 1,000 tweets can be viewed daily by non-verified users, which represent the vast majority of users with free accounts.
There would be a 500-tweet cap on new unverified accounts.
A few days later, Twitter announced that beginning next month, only “verified” users will be able to access TweetDeck, a popular tool that will let users watch many accounts simultaneously.
The adjustments were made after Threads, an app created by Facebook parent Meta to compete with Twitter, racked up more than 100 million users in only five days.
Although Musk purchased the network and fired hundreds of employees, Twitter has experienced several technological problems despite having an estimated 200 million daily users.
Musk has vowed to sue Meta, claiming that the business has been stealing trade secrets and intellectual property.
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