Leo Gonzalez

April 25, 2024 - 01:30 am

Elon Musk's Assessment of Twitter's Financial Position

Elon Musk took to Twitter on Sunday, describing the recent months as "extremely tough" but highlighting that Twitter is now "trending to breakeven."

Challenges Amid Multifaceted Responsibilities

As CEO of Tesla and SpaceX, Musk noted the significant challenge of simultaneously steering Twitter away from bankruptcy while managing his other corporate obligations.

Financial Outlook and Musk's Role

While Musk expressed optimism about Twitter's trajectory, CNBC could not independently verify his assertion regarding the company's financial status.

Rocky Takeover and Operational Changes

Musk's acquisition of Twitter for $44 billion late last year marked the beginning of a turbulent period for the social media platform. Some changes implemented by Musk, such as reinstating accounts of controversial figures, led to backlash and advertiser departures.

Financial Struggles and Legal Challenges

Twitter faced a decline in daily revenue and advertiser spending under Musk's ownership, prompting legal disputes over unpaid bills and rent, as well as labor-related issues.

Cost-Cutting Measures and Revenue Diversification

To mitigate financial challenges, Musk initiated layoffs, cost reductions, and efforts to diversify revenue streams, including auctioning off company assets and introducing subscription services like Twitter Blue.

Shareholder Concerns and Personal Strain

Musk faced criticism from Tesla shareholders for potential distractions and the perceived diversion of resources to Twitter. His multitasking drew concerns about his well-being, to which Musk responded with a candid acknowledgment of personal worries.