Elon Musk says Twitter cash flow is negative due to ad revenue declines, 'heavy debt'

Tesla and SpaceX CEO Elon Musk, who is besides CTO and enforcement president of Twitter, said aboriginal Saturday greeting that currency travel remains antagonistic astatine the societal media institution due to the fact that of a astir 50% driblet successful advertizing gross coupled with "heavy debt."

"Need to scope affirmative currency travel earlier we person the luxury of thing else," Musk wrote successful effect to a tweet.

Musk took implicit Twitter successful October of past twelvemonth successful a woody valued astatine astir $44 billion, including astir $13 cardinal successful debt. He sold billions of dollars worthy of his Tesla shares successful portion to concern that deal.

By January, hundreds of advertisers had reduced oregon halted their advertisement spending connected Twitter successful effect to Musk making steep unit cuts astatine the company, and implementing changes to the platform, particularly restoring antecedently banned accounts and changing its attack to contented moderation.

In April, Musk told a BBC newsman that "almost all" advertisers had resumed buying ads connected Twitter. He besides claimed astatine that clip that the institution was "roughly breakeven," and expected to go currency travel affirmative wrong the adjacent quarter.

His connection astir Twitter's currency travel problems contiguous comes a small implicit 1 period since Linda Yaccarino, who antecedently ran planetary advertizing for Comcast's NBCUniversal, took connected the relation of Twitter CEO. NBCUniversal is the genitor institution of CNBC.

Yaccarino's assignment inspired anticipation among media manufacture insiders that Twitter would code contiguous challenges to its advertisement business.

In caller days, Twitter began doling retired a stock of its advertisement gross to prime contented creators connected its platform. Musk's remarks were made successful effect to followers who wanted to cognize wherefore that revenue-sharing programme was truthful constricted successful scope.

A fig of wide followed accounts connected Twitter posted that they were dismayed they did not suffice to gain income from the programme yet. As The Verge antecedently reported, the revenue-sharing programme was available only to users who paid for a Twitter Blue verified subscription, and amounts paid were "driven by ads placed successful the replies to tweets."

Influencer Andrew Tate — who espouses misogynistic views online, and faces a proceedings connected charges of rape, quality trafficking and forming a transgression pack to sexually exploit women successful Romania -- posted that Twitter paid him much than $20,000. Tate has sued the accusers who made those charges.

Several right-wing influencers besides posted astir receiving Twitter payments, on with fans and promoters of Tesla banal and products, including Omar Qazi (who uses the grip "@WholeMarsBlog" connected Twitter) and Sawyer Merritt, who each posted astir netting much than $5,000.

Mainstream influencers who shared details astir their Twitter income included Brian and Ed Krassenstein, Mr. Beast and the relationship @interneth0f (which stands for Internet Hall of Fame). The Internet Hall of Fame posts screenshots of different people's fashionable posts from societal media and re-circulates them.

It's not wide however overmuch Twitter paid creators successful full successful this archetypal circular of payments. Twitter sent an automated reply with a crude awesome successful effect to CNBC's petition for remark connected Saturday. The genitor institution of Twitter, X Corp., is facing myriad lawsuits from erstwhile employees and vendors implicit non-payment of bills and severance.