Twitter: Is debt and advertising decline a threat to the company?

Twitter: Is debt and advertising decline a threat to the company?

San Francisco, 7/18/2023

Twitter owner Elon Musk confirmed that the platform is still facing negative cash flow due to a 50 percent drop in ad revenue and significant debt. In a tweet, Musk said the company needs to be cash flow positive before doing anything else.

Musk previously said that most of the advertisers who left the platform after his acquisition either returned or announced they would.

In another statement, he expressed the opinion that Twitter is on track to reach $3 billion in revenue by 2023, up from $5.1 billion in 2021.

Research firm Sensor Tower estimates that ad spend on Twitter fell 89% in two months to $7.6 million.

Before Musk took over Twitter, the top 10 advertisers spent $71 million on ads between September and October.

Because of the $44 billion in debt Musk incurred when Twitter was privatized, the company has to make about $1.5 billion in annual interest payments.

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