Plunging U.S. revenue at X risks opening up a "massive hole" on its balance sheet that Musk needs to plug to stave off its financial collapse.

Musk’s repeated outbursts against advertisers have dried up the main source of revenue for the loss-making company formerly known as Twitter. A recent decision to sue them for heeding his own advice to not buy ads on the platform hasn’t helped. At some point, he will have to provide a fresh infusion of cash to salvage his $44 billion takeover.

  • Sgt_choke_n_stroke@lemmy.world
    0·
    3 months ago

    Whats interesting is the NRA spent billions in TV propaganda running a news channel and that venture ended up bankrupting the whole organization. It looks like musk is falling in the same trap

  • S_H_K@lemmy.dbzer0.com
    0·
    3 months ago

    Oh no think of all the journalists that will have to work instead of quoting twitter for 3 scrolls straight!

  • irreticent@lemmy.world
    0·
    3 months ago

    “A recent decision to sue them for heeding his own advice to not buy ads on the platform hasn’t helped.”

    Gotta love it. He told advertisers to fuck off, they fucked off, now he’s even more mad at them.

    • Voroxpete@sh.itjust.works
      0·
      3 months ago

      That would require him to take Twitter public again, for the record (that may well have been your meaning, but I’m clarifying because a lot of people aren’t aware of this). The odds of a second Twitter IPO doing any kind of numbers is basically zero at this point. It’s been a very public trainwreck for the last year. Might as well try to sell tickets on the Titanic after the iceberg hit.

    • Voroxpete@sh.itjust.works
      0·
      3 months ago

      Can we please, please stop with this nonsense.

      1. Why did he fight a lawsuit to get out buying it? How many levels of 4D chess are we on in this demented conspiracy theory where he wants to buy something, so he sends a bunch of very expensive lawyers to court for months to try to get him out of buying it?

      2. Why did he rename it to X? X is his baby. That’s not hyperbole, the X brand is so important to him that the literally named one of his children X. He got kicked out of paypal for trying to make X happen. The man is absolutely obsessed with X. It is his white whale. You don’t bequeath that legacy to something you’re trying to kill.

      Stop giving Musk credit by pretending there’s some kind of genius plan behind everything he does. He’s the richest man on earth, he does not need you to suck his dick for him. He can pay people for that.

      He doesn’t have a secret evil plan. He’s just really, really stupid. He’s a textbook example of how people who start with wealth and unearned confidence will frequently become even wealthier because we have a fucked up clown show of an economic system. That’s all there is to it.

  • Talaraine@fedia.io
    0·
    3 months ago

    Why do you think he strongarmed Teslas shareholders into that big pay day? He’s known this was coming, y’all. Tesla’s just paying for his misadventure.

  • haunte@leminal.spaceEnglish
    0·
    3 months ago

    From this article:

    Ferguson based his assessment on internal second-quarter figures recently obtained by the New York Times. According to this report, X booked $114 million worth of revenue in the U.S., its largest market by far. This represented a 25% drop over the preceding three months and a 53% drop over the year-ago period.

    From when he bought twitter:

    Mr. Musk has set some ambitious goals for Twitter, which he has said he will transform into an “everything app” called X. In presentations to investors about the deal this spring, he said he anticipated that Twitter would reach annual revenue of $26.4 billion and have 931 million users by 2028.

    Uhh, not even close Musk. I guess he still has 3 years and 4 months to turn it around though. lol. I was told this man was a business genius.

    • octopus_ink@lemmy.mlEnglish
      0·
      3 months ago

      I get challenged to provide a motive every single time I say this, but I’ve been convinced since just a few months after the purchase that the entire goal has absolutely been to destroy it. And with some of the moves he has made, I’m frankly surprised it took this long.

      He continues to be hostile to most of the user base that made twitter popular, all the censorship/freezepeach stuff, how he destroyed verification, his bullying of advertisers, etc etc. I’m NOT a business genius but these seem like obvious glaringly awful business moves and they just keep coming.