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Alternatively, the costs outweigh impression revenue, they are actively running out of money, and trying to stall while desperately trying to find additional ca
by crote 3y ago
Alternatively, the costs outweigh impression revenue, they are actively running out of money, and trying to stall while desperately trying to find additional cash.
- rsynnott 3y agoThat seems… implausible? They used to be profitable; clearly at that point advertising revenue must have greatly exceeded infra cost. Now, I’d buy that it’s down, but surely not by _that_ much.
- lapcat 3y agoBut there are now big debt payments that didn't exist before, from the massively leveraged buyout.
- rsynnott 3y agoOh, sure, I’d be amazed if it’s profitable today. But I understood the person I was replying to to mean that they were throttling to control infra cost, which makes no sense, as revenue from people using twitter (ads) must surely more than pay for the infra; effectively shutting down twitter won’t make the debt costs go away and would clearly be a net financial negative.
- lapcat 3y ago> But I understood the person I was replying to to mean that they were throttling to control infra cost Or hard pushing for Twitter Blue subscriptions, which have 10x the rate limit.
- tpetry 3y agoA lot of advertisers left Twitter one after another after each change by musk. Especially his change to allow hate speech (because free speech!) led to an exodus. Now there are only very low-quality ads by drop-shipping companies left. I bet they don‘t pay as much as the big brand names before.