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Twitter’s cash flow remains negative as advertising revenue drops, says Elon Musk


Elon Musk, the owner and CTO of Twitter, revealed that the company’s cash flow continues to be in the negative territory due to a significant drop of around 50 percent in advertising revenues and a heavy debt load. Responding to a Twitter user’s suggestions regarding recapitalization, Musk emphasized the need for Twitter to achieve positive cash flow before considering other ventures.

“We’re still negative cash flow, due to ~50 per cent drop in advertising revenue plus heavy debt load,” Musk said. “Need to reach positive cash flow before we have the luxury of anything else.”

Despite cost-cutting measures implemented after Musk acquired Twitter in October of the previous year, the company has not yet reached cash flow positivity. Furthermore, Twitter’s advertising revenue appears to be slow in recovery, possibly affected by criticism over content moderation issues and an exodus of advertisers.

To improve the situation, Musk has appointed Linda Yaccarino as the CEO of Twitter, focusing on video, creator, and commerce partnerships to enhance ad sales and subscription revenue.

Additionally, Twitter is exploring various collaborations with prominent figures in politics, entertainment, payments services, and news and media publishers, as well as introducing a revenue-sharing model with content creators to attract more talent to the platform.

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