By Kasim Isa Muhammad
Elon Musk, the owner of Twitter, has recently revealed that the social media platform has experienced a significant decline in advertising revenue since he acquired it for $44 billion in October of last year.
Musk shared this in a tweet response to a user who was suggesting financing options for the platform.
He stated that Twitter’s advertising revenue has dropped by approximately 50%, leading to negative cash flow along with a heavy debt load.
Musk emphasized the need to achieve positive cash flow before addressing other matters, without providing further details.
Insider Intelligence reported that Twitter’s revenue for 2023 was projected to be less than $3 billion, which is a one-third decrease compared to 2022.
It was gathered that Since Musk took over Twitter, he has implemented changes that have resulted in user and advertiser dissatisfaction.
TCR observed that one recent change involved limiting the number of tweets that verified and non-verified users can read per day. Verified accounts are now restricted to 10,000 tweets, while non-verified accounts can only read 1,000 tweets per day.
Additionally, new unverified accounts face a limit of 500 tweets.
Meanwhile, Meta’s Threads, a rival app to Twitter launched by Facebook’s parent company, has gained significant traction.
It reportedly amassed over 100 million users within its first five days, surpassing the user acquisition rate of the artificial intelligence app ChatGPT by OpenAI earlier this year.
Threads is estimated to have reached 150 million users, primarily driven by its connection to Instagram, which provides a built-in audience of over two billion users.
Similarly, Musk has threatened legal action against Meta, accusing the company of stealing trade secrets and intellectual property.
Musk’s lawyer, in a letter published by the news outlet Semafor, alleged that Meta had recruited numerous former Twitter employees who had access to sensitive information.
The rivalry between Musk and Zuckerberg has intensified as Meta’s intentions to compete with Twitter became apparent.
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