Elon Musk says Twitter is still losing cash because advertising has dropped by half. In a reply t🌜o a tweet offering business advice, Musk tweeted on Saturday, “We're still negative cash flow, due to (about a) 50 per cent drop in advertising rꦓevenue plus heavy debt load.”
“Need to reach positive cash flow before we have the luxury of anyt🍒hing else,” he concluded. Ever since he took over Twitter in a USD 44 billion deal last fall, Musk has tried to reassure advertisers who were concerned about the ouster of top executives, widespread layoffs an🐈d a different approach to content moderation. Some high-profile users who had been banned were allowed back on the site.
In Apr൩il, Musk said most of the advertisers who left had retuဣrned and that the company might become cash-flow positive in the second quarter. In May, he hired a new CEO, Linda Yaccarino, an NBCUniversal executive with deep ties to the advertising industry.
But since then, Twitter has upset some user🅠s by imposing new limits on how many tweets they can view in a day, and some users complained that they were locked out of the site. Musk said the restrictions were needed to prevent unauthorized scraping of potentially valuable data.
Twitter got a new competitor this month when Facebook owner Me🍌ta launched a text-focused app, Threads, and gained tens of millions of sign-ups in a few days. Twitter responded by threatening legal action.
