Twitter has become less attractive to advertisers since Elon Musk bought the social network.
The purchase of Twitter by Elon Musk is not without controversy, but it cannot be denied that the social network has gained notoriety with its new and eccentric owner.
However, this is not reflected in their income, which has taken a heavy hit.
The Platformer reports that Twitter would be capturing 40% less revenue amid problems with its advertising business.
The arrival of Elon Musk promised an era of “unrestricted free speech”, which has worried big advertisers, who have paused their ad spending on Twitter for fear that their campaign would be mixed with hate messages.
This hits Twitter hard , which has ads as its main source of revenue.
In a report by The Information , it was learned that a Twitter manager said in a meeting that the income of that day was 40% lower than that registered on the same day last year.
Another report from the same outlet indicates that the company reported 35% less revenue in the fourth quarter of 2022 at an internal meeting. By going private with the purchase of Elon Musk , Twitter does not have to publish these metrics.
Twitter in more trouble
Twitter must also start paying interest on the $13 billion loan that Elon Musk took on behalf of the social network to buy the platform.
These interests, due to expire this January according to the Financial Times , add up to 1.5 billion dollars.
At stake is $26 billion that Elon Musk spent directly to buy Twitter, in addition to money from other investors.