In July, Musk tweeted about Twitter / X’s financial situation, saying, “We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load.”
Advertising could be up two fold for all it matters. You sack a company that last turned an annual profit in 2019 with $44B in debt, it won’t matter if Musk is shitting gold bricks. You can’t pay that size of debt off fast enough. To just get started on that debt Musk would need to make Twitter twenty times more profitable than their 2019 profit. And even then that debt is going to be a monkey on his back for forty years in ideal conditions.
That $44B isn’t chump change for Twitter, like maybe if Tencent took a sudden $44B debt they’d make good on it, but they’re wildly profitable. Twitter barely gets by and has only gone on this long because of the Tech Bro funding that all but dried up when the interest rates were going up.
Advertising could be up two fold for all it matters. You sack a company that last turned an annual profit in 2019 with $44B in debt, it won’t matter if Musk is shitting gold bricks. You can’t pay that size of debt off fast enough. To just get started on that debt Musk would need to make Twitter twenty times more profitable than their 2019 profit. And even then that debt is going to be a monkey on his back for forty years in ideal conditions.
That $44B isn’t chump change for Twitter, like maybe if Tencent took a sudden $44B debt they’d make good on it, but they’re wildly profitable. Twitter barely gets by and has only gone on this long because of the Tech Bro funding that all but dried up when the interest rates were going up.
I can’t wait to see how his offer to pay people’s legal bills who get in trouble at work for saying problematic shit on his platform works out
Twitter wasnt saddled with 44B in debt, That was the purchase price, which included $13B in debt
only chance is if they go hardware i think (edit: have any of you heard of diversification)
what?
You know how some companies make vibrating dildos? Twitter should do that.
So it’ll vibrate every time someone says “woke” on the platform?
They’ll randomly go off in luggage so they get disposed of by a bomb squad?
Who said hardware can’t be a valid recurring revenue model?
You know, like the Gavin Belson Signature Box III.
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Hardware? Hardware was never profitable. It’s a gateway to spending more money on proprietary software.
Unless you’re Nintendo, they have their cake and eat it too.
IDK, I imagine they’re online service is pretty profitable.
Hardware… what?
Chat, banking, stock trades, and lawn mowers