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Would you mind explaining this a bit further? I'm out of the loop here and don't know anything about Twitter's costs before or after Musk's purchase.
by notinfuriated 4y ago
Would you mind explaining this a bit further? I'm out of the loop here and don't know anything about Twitter's costs before or after Musk's purchase.
- klyrs 4y agoHe had to take out a giant loan to afford the purchase (debt financing), which twitter needs to pay about $1B a year to service. Twitter wasn't getting anywhere near that in profit.
- notinfuriated 4y agoAh, didn't realize this about the $1B/year. Thanks!
- input_sh 4y agoTwitter had like two profitable quarters in its existence and now on top of the usual operating costs they have to be profitable enough for 1 billion/year debt repayment. If I'm being very generous, I'd give Twitter 6 more months.