Twitter cash flow negative due to reduced advertising, heavy debt: Musk

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ANI

Since acquiring Twitter in a $44 billion deal, Musk has been trying to reassure advertisers. Advertisers are worried about mass layoffs, ousting top executives from the company.

San Francisco. America’s veteran industrialist Elon Musk has said that Twitter is losing cash due to less than half of the revenue from advertisements. In response to a tweet offering business advice, Musk said on Saturday, “Our cash flow is still negative due to a (nearly) 50 percent drop in advertising revenue and a heavy debt burden.” He tweeted, ‘We need to be cash flow positive before we can do anything else.’ Musk has been trying to reassure advertisers since Twitter was acquired in a $44 billion deal. Advertisers are worried about mass layoffs, ousting top executives from the company.

Some veteran users who were banned by Twitter are now back on the site. Musk said in April that most of the advertisers that had left were back and that the company could be cash flow positive in the second quarter. In May, Twitter appointed new Chief Executive Officer (CEO) Linda Yacarino. Now a new rival has also come before Twitter. Facebook owned Meta has also introduced text based app threads on the lines of Twitter. However, Twitter has warned of legal action against it.

Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.



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