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Elon Musk warns of Twitter bankruptcy

Published

2 years ago

November 11, 2022

Elon Musk has warned that a Twitter bankruptcy is a possibility

Twitter boss Elon Musk says bankruptcy is not out of the question as he attempts to make his mark on the social media platform.

Musk has reportedly held an all-hands meeting with Twitter employees, in an attempt to find solutions and breathe life back into into the company.

The new owner says his company has financial problems so serious that “bankruptcy is not out of the question”, if Twitter doesn’t start generating significantly more revenue.

Musk purchased the tech platform for a whopping $44 billion. He’s hoping it will have a “net negative cash flow of several billion dollars” by 2023.

He warned employees “without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn”.

Musk claims Twitter is losing more than $4 million per day. This is as it suffers through a “massive drop in revenue” largely due to companies pausing advertisement deals.

Musk hopes a subscription model will heal Twitter’s financial woes.

The $8-per-month plan for blue ticks likely won’t make much of a dent in the company’s debt payments.

Related Topics:Elon Musk musk Tech Twitter

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William Howard

William is an Executive News Producer at TICKER NEWS, responsible for the production and direction of news bulletins. William is also the presenter of the hourly Weather + Climate segment. With qualifications in Journalism and Law (LLB), William previously worked at the Australian Broadcasting Corporation (ABC) before moving to TICKER NEWS. He was also an intern at the Seven Network's 'Sunrise'. A creative-minded individual, William has a passion for broadcast journalism and reporting on global politics and international affairs.

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Why the meme-stock frenzy is unlikely to repeat

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1 day ago

May 14, 2024

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GME shares surge 74%, but experts stress a meme-stock frenzy resurgence is unlikely due to fundamental differences in the company’s financial situation.

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Why are airlines after the Biden Administration?

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2 days ago

May 14, 2024

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Major airlines are taking legal action against the Biden administration over a newly implemented rule requiring them to disclose fees upfront.

On this episode of Hot Shots – Major airlines are suing the Biden Administration, AI-piloted fighter jets, SpaceX faces funding challenges, and Apple receives crushing feedback.

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The mounting pressure on Government spends

Published

2 days ago

May 13, 2024

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