Billionaire Elon Musk, the recent acquirer of Twitter, has openly acknowledged the platform’s current financial challenges, including a decline in advertising revenue and negative cash flow.
In a response to a Twitter user named Sophie, who proposed forming a consortium aligned with Musk’s vision for the website to tackle its financial woes, Musk disclosed that Twitter’s substantial debt and a staggering 50% drop in advertising revenue have contributed to its negative cash flow.
Musk emphasized that resolving the negative cash flow and addressing the burden of debt should take precedence for Twitter before exploring other initiatives. Clearly, the platform’s financial situation is a significant concern for its new owner.