Twitter owner Elon Musk said that Twitter has lost half of the company’s ad revenue since the acquisition last year.
Musk bought Twitter in October last year for NOK 440 billion at today’s exchange rate.
“We still have negative cash flow as a result of a drop of about 50 percent in advertising revenue, as well as a significant debt load,” Musk says in a post on the platform in response to a Twitter user’s question about financing.
We have to have a positive capital flow before we start anything else, Musk adds, without elaborating.
Dissatisfied users and advertisers left the platform after the acquisition. But in April, Musk said most of the advertisers who left Twitter had now returned, then claimed the company could turn a profit in the second quarter.
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In May, he named Linda Iaccarino, an NBC Universal executive with deep ties to the ad industry, as Twitter’s new CEO.
Earlier this month, it announced that verified users, people who pay $8 per month, would be allowed to read up to 10,000 messages per day. Everyone else, who makes up the majority of Twitter users, is limited to reading 1,000 messages per day. Newly created free accounts are limited to 500 messages per day.
A few days after this announcement, Twitter stated that the popular program TweetDeck will be available only to paying users starting next month.
Twitter is believed to have around 200 million active users.
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