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> (twitter) needs revenue right now, and the other monetization efforts haven't panned out Twitter monetizes via 1. advertising, 2. subscriptions, 3. API sales

by nomilk 3y ago

> (twitter) needs revenue right now, and the other monetization efforts haven't panned out Twitter monetizes via 1. advertising, 2. subscriptions, 3. API sales, admittedly I have no idea of the actual numbers. The first claim (that Twitter needs revenue urgently) seems false since the owner has deep pockets.

mogwire 3y ago
How many companies owned by the world’s richest men have had lay offs in the last 18 months? They became that rich by not losing money. It’s a sinking ship and he is trying to plug the hole.
- nomilk 3y ago
  Correlation does not equal causation. Although unprofitable companies might be inclined layoff employees, it's not implied that layoffs are a sign of unprofitability (in fact, the opposite could be true: laying off employees whose marginal value is low could cause a company to be more profitable).
tourmalinetaco 3y ago
Twitter is still $20B away from being in the green from even the most generous estimates. (Elon himself) Currently Twitter is in the red, and he needs it to not be that and to generate a multi-billion surplus to pay back the investors he took up to finance this.
- nomilk 3y ago
  > Twitter is still $20B away from being (profitable) Can you explain how Twitter manages to spend $20B per year? Say they have 1000 employees @ $200k/year, that's $200m/year (1/5th of 1B). Where are the remaining $19.8B being spent? That figure doesn't pass the sniff test.
  - tourmalinetaco 3y ago
    That’s because you’ve misunderstood. Twitter is worth $20B. We don’t know what they spend nor how much they make as a profit because they’re a private company. What I’m saying is for Elon to even break even on the deal, using the information we have access to, he needs its evaluations to reach at least $40B. Once it reaches that, it actually proves itself as having been at minimum a neutral purchase. Albeit the real numbers it has to reach and how much profit it needs are both currently unknown.

by nomilk 3y ago

mogwire 3y ago

How many companies owned by the world’s richest men have had lay offs in the last 18 months? They became that rich by not losing money. It’s a sinking ship and he is trying to plug the hole.

nomilk 3y ago
Correlation does not equal causation. Although unprofitable companies might be inclined layoff employees, it's not implied that layoffs are a sign of unprofitability (in fact, the opposite could be true: laying off employees whose marginal value is low could cause a company to be more profitable).

tourmalinetaco 3y ago

Twitter is still $20B away from being in the green from even the most generous estimates. (Elon himself) Currently Twitter is in the red, and he needs it to not be that and to generate a multi-billion surplus to pay back the investors he took up to finance this.

nomilk 3y ago
> Twitter is still $20B away from being (profitable) Can you explain how Twitter manages to spend $20B per year? Say they have 1000 employees @ $200k/year, that's $200m/year (1/5th of 1B). Where are the remaining $19.8B being spent? That figure doesn't pass the sniff test.
- tourmalinetaco 3y ago
  That’s because you’ve misunderstood. Twitter is worth $20B. We don’t know what they spend nor how much they make as a profit because they’re a private company. What I’m saying is for Elon to even break even on the deal, using the information we have access to, he needs its evaluations to reach at least $40B. Once it reaches that, it actually proves itself as having been at minimum a neutral purchase. Albeit the real numbers it has to reach and how much profit it needs are both currently unknown.