Twitter’s revenue has plummeted amid an exodus of top advertisers in the months following Elon Musk’s takeover, according to news reports, compounding concerns over the company’s future as Musk implements his controversial vision for content moderation and drastically overhauls the social platform.
Daily advertising revenue at Twitter on January 17 was 40% lower than at the same time last year, according to tech publications Platformer and The Information.
The drop comes after more than 500 of the firm’s top advertisers paused spending since Musk took over in October, The Information reported, citing a person familiar with the matter.
The loss of so many key advertisers is particularly concerning for a company like Twitter, which makes most of its money—more than 90%—through ads.
What To Watch For
The reports come as Twitter faces an imminent interest payment on $13 billion of debt used to finance Musk’s $44 billion purchase, according to the Financial Times. The debt is reportedly not guaranteed by Musk personally, though two people close to the matter told the FT discussions are underway for Musk to replace around $3 billion of the debt with loans backed by his stake in Tesla, though this is far from certain. Payment is reportedly due—to a group led by Morgan Stanley, Barclays, Bank of America and Mitsubishi—in a “matter of days,” the FT reported. Default could have significant consequences for the firm and its investors, including possible bankruptcy and restructuring.
$151.8 billion. That’s Musk’s estimated net worth, according to Forbes’ real time tracker. Large portions of Musk’s wealth is tied to Tesla, the electric vehicle manufacturer he cofounded and leads, whose stock tanked in 2022. Musk was overtaken as the world’s richest person by French luxury goods tycoon Bernard Arnault in December. Arnault is worth an estimated $213.3 billion and is best known for his fashion empire, LVMH, which includes brands like Louis Vuitton and Sephora.
Extremely Hardcore (The Verge)