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It's private and sure the owner is rich, but it's still a burn and nowhere near recuperating the cost. A bunch of advertisers left or paused spending as noted.
by bfeynman 3y ago
It's private and sure the owner is rich, but it's still a burn and nowhere near recuperating the cost. A bunch of advertisers left or paused spending as noted.
A little lesson on business, Musk bought it for 44 billion, at time it was not quite a profitable company but had 4.4 billion in revenue, if he slashes the operating budget by a huge margin and laying off everyone, then whoopee it's profitable, but it's nowhere near the amount of revenue/profit it needs to pay back the debt taken on to finance the purchase. private market analysts report on ad spending all project twitter revenues to drop substantially (40%) based on ad spend data.
- shri_krishna 3y agoRight now Twitter may not be recuperating the sale I agree, but as long as it is able to pay the interest on debt plus whatever is the equated instalments it should be good (for the time being at least). But one thing we haven't accounted for is Musk using Twitter's dataset for training LLMs in his new AI venture. Now that is a gold mine on its own. There is significant raw potential that is still untapped. Eventually everyone will move out of the ad business as ad blockers become more prolific and it no longer is worth the cost to advertise. So there will be alternative ways of earning. Can never rule that out.