Elon Musk’s acquisition of Twitter has been underwhelming, with the platform facing numerous challenges. After a series of personnel changes and the launch of Twitter Blue, the company has struggled to find stability. While Musk initially announced that all advertisers had returned in April, he later admitted that Twitter was facing financial difficulties due to a significant drop in advertising revenue and a heavy debt load. Musk highlighted the need for positive cash flow before addressing other issues.
The burden of debt stems from the funds borrowed by Musk for the Twitter acquisition, with the company reportedly paying substantial annual interest payments of around $1.5 billion.
To diversify its revenue streams, Musk appointed Linda Yaccarrino as the new CEO of Twitter and outlined plans to focus on videos, creator collaborations, and commerce partnerships. Vertical videos have proven popular on the platform, accounting for more than 10% of total time spent. Musk also hinted at the development of a Twitter video app for smart TVs. Discussions are underway for a potential partnership with Google, encompassing advertising and access to Twitter’s data.
Despite these efforts, Twitter continues to grapple with financial challenges and the need to secure positive cash flow before pursuing further initiatives.
