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Twitter before this wasn't doing great, but they had cash on hand to last for years. Since taking over Musk has slashed costs by getting rid of benefits and lay
by neaden 4y ago
Twitter before this wasn't doing great, but they had cash on hand to last for years. Since taking over Musk has slashed costs by getting rid of benefits and laying people off, but also slashed income by alienating advertisers. Along with doing things like saying in a court hearing that the FTC consent decree on Twitter isn't binding which is opening them up to legal liability. The company is overall in far worse shape now then it was when he took over.
- timr 4y ago> but also slashed income by alienating advertisers. Most of the advertisers left before he took over. He hadn't done anything yet. Say what you will about Musk, but that part in particular strikes me as one of the completely insane parts of the advertising business model. Brand advertisers (the ones that pay the highest rates) are insanely conservative, and would rather pull their ads than risk any negative blowback, no matter how theoretical.
- neaden 4y agoMy understanding is that they didn't leave right away, but rather held off on committing to purchasing advertisements in advance until they could speak with him and learn about his plans. It wasn't until the whole fiascos with the blue checkmarks and his call with advertisers going badly that they began to pull back en masse.
- timr 4y agoA ton of brands announced, on the day he took over, that they were suspending their ads.