Twitter’s new owner Elon Musk told staff in an all-hands meeting Thursday the company has financial problems so serious that “bankruptcy is not out of the question” if it doesn’t start generating significantly more revenue, according to multiple reports, as the billionaire privately voices a grim outlook for Twitter’s future.
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| Twitter Boss Elon Musk. Photo: AP Photo/Susan Walsh via Forbes |
Key Facts
- Musk told employees at the company—which he bought two weeks ago after spending months trying to back out of his $44 billion acquisition deal—he expects Twitter will have a “net negative cash flow of several billion dollars” next year, according to the Information.
- The comment comes after Musk said in his first company-wide email, “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn,” a message he sent to his workforce at 2:39 a.m. Eastern time Thursday.
- Musk claimed last week that Twitter is losing more than $4 million per day, while he also tweeted it has “had a massive drop in revenue” due to companies pausing ad buys on Twitter, partly due to moderation concerns
Big Number
$18.5 billion. That’s how much debt Twitter now holds. Musk took on about $13 billion of it in loans from banks to finance his $44 billion deal to take over the platform.
Contra
Musk claimed at an investor conference last week that he believes Twitter can become the most valuable company in the world.
Forbes
