Musk: Twitter Has “Negative Cash Flow, Heavy Debt”

July 15, 2023 Business, Social Media

Bloomberg News reports:

Twitter owner Elon Musk said the company still has a negative cash flow because of its heavy debt load and a roughly 50% drop in advertising revenue. The social media site will “need to reach positive cash flow before we have the luxury of anything else,” Musk said in a tweet. Advertiser spending dropped 89% to $7.6 million over a two-month period early this year, according to estimates for market research firm Sensor Tower. The top 10 advertisers had spent $71 million on ads from September to October of 2022, ahead of Musk’s acquisition. The firm laid off thousands of employees in the wake of the deal.

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time for more Cheech & Chong gummies ads pic.twitter.com/qvV6fHYvg5

— Aaron Rupar (@atrupar) July 15, 2023

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

— Elon Musk (@elonmusk) July 15, 2023