Tesla CEO and Twitter chief Elon Musk told Twitter staff that the company’s “economic picture ahead is dire.” “Bankruptcy is out of the question,” the billionaire said, adding that “there’s a good chance Twitter won’t survive the coming economic downturn without significant subscription revenue.”
Twitter could go bankrupt, says Elon Musk
Elon Musk, billionaire got it Nearly two weeks ago, $44 billion Twitter sent out its first email to all Twitter employees on Wednesday informing them of the social media platform’s dire financial situation. “There is no way to cover up the message,” Musk wrote, adding:
Frankly, the economic picture ahead is dire.
I detailed how the economic situation is worse for a company like Twitter, which is heavily dependent on advertising in a tough economic environment. “70% of our ads are brand rather than performance specific, which makes us doubly sensitive,” I said.
Musk continued: “That’s why the priority over the last ten days has been to develop and launch Twitter Blue Verified Subscriptions,” developed by:
Without significant subscription revenue, there’s a good chance Twitter won’t survive the coming economic downturn. We need about half of our revenue to subscribe.
However, Musk said the social media company will still be “significantly dependent on advertising,” so he’s working to “ensure Twitter continues to attract advertisers.” The billionaire emphasized: “The road ahead is bumpy and hard work will be required to succeed.”
The Tesla and Spacex CEO added that Twitter’s policy will be changed and remote work will no longer be allowed. As of Thursday, anyone employed by the social media giant must be in the office for a minimum of 40 hours a week unless they are physically unable to travel or have critical personal commitments.
Plus, Musk held an emergency general meeting with Twitter employees on Wednesday. I have reported he said:
Bankruptcy is out of the question.
After the meeting, the two heads of Twitter, Robin Wheeler and Joel Roth, reportedly left the company. Musk last week was fired Nearly 50% of Twitter employees claim they have no choice as the social media company loses more than $4 million a day.
Musk admitted on Wednesday that the new $8 per month there are problems with the verification system. “Too many broken legacy Blue ‘check’ marks exist, so there is no choice but to remove the old Blue in the coming months,” he said. Despite this, he insisted that Twitter usage has increased since he took over the platform.
This week, I outlined how Twitter could then monetize as a payments company given paperwork with the US Financial Crimes Enforcement Network (FinCEN) to start a payment business.
Do you think Twitter will go bankrupt? Let us know in the comment section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Refusal: This article is for informational purposes only. This is not a direct offer or an offer to buy or sell or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or use of any content, goods or services mentioned in this article. .
