Less than two weeks after buying Twitter for $44 billion, Elon Musk is sounding the alarm. The company has run out of cash and bankruptcy is near.
Elon Musk took over the reins of Twitter two weeks ago. A period of time that will have seen the social network fall into the most total chaos. The Tweeter-in-Chief is at a loss for what to do to stem the fall of the Twitter house and his decisions seem increasingly erratic. He lays off thousands of employees to then recall some of them, he exchanges invectives live on the platform and does not seem to know which subscription formula to adopt. Behavior that drives advertisers awayand causes a shortfall that the platform really does not currently need.
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In this context, the CEO called an emergency meeting during which he shared the company’s situation with his employees. He would have claimed that “the prospect of bankruptcy cannot be ruled out”. He took this opportunity to announce the departure of the director of moderation. His teams form a large contingent of those laid off last week. We can therefore worry about the future quality of content on Twitter. Everything suggests that the words will no longer be really moderated, and that priority will be given to tweets from Twitter Blue members, the monthly subscription at €8, the revised version of which will also serve as Verification.
Twitter loses too much money, Elon Musk sells Tesla shares to bail out the coffers
Elon Musk doesn’t know how long Twitter can continue to run at this rate. After spending $44 billion to buy the social network, and reselling shares of Tesla to bail out the coffers, the richest man in the world is not sure he can reinject money into the machine to ensure its operation. According to him, the company is too dependent on its advertising revenue, and therefore on the goodwill of advertisers, who do not appreciate the erratic behavior of Elon Musk.
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According to the New York Times, Twitter loses $4 million every day in operating costs alone. While generating revenue is more urgent than ever, the Twitter Blue offering currently appears to be experiencing serious technical issues. If we add to this that the platform is plagued by a resurgence of fake accounts, we can safely conclude that the picture is black for Twitter.