Following the appearance of a new rumor, the discussion on Twitter’s effect on Tesla, Inc.’s fundamentals might resume. Platformer Managing Editor Zoe Schiffer tweeted late on Tuesday about Twitter revenue. It had decreased 40% year over year, referring to the information as a small scoop without providing a time frame.
Before Musk acquired Twitter, the social media platform’s six-month revenue increased by 6.8% to $2.38 billion. However the second quarter’s revenue decreased by around 1% to $1.18 billion.
After Musk took it private, Twitter kept its profits report private, even though it usually does so in late October.
Musk’s takeover has put pressure on Twitter’s top line as most advertisers either stopped using the network or left searching for more clarity on policy and direction. Since many banned accounts were reinstated due to Musk’s brazenness, political beliefs, and pursuit of free speech, advertisers have grown increasingly furious. Most companies avoided having links to their products appear next to offensive material.
Twitter also had to deal with industry challenges, including decreased ad expenditure amid a weak economy.
About 91.5% of Twitter’s total revenue came from advertising in the second quarter of 2022. Musk criticized advertisers on Twitter Spaces, claiming they demanded significant returns on their ad spending.
Additionally, according to Schiffer, Musk’s first “giant interest” payment on the loan he took out to finance the Twitter transaction is due at the end of the month.
Musk used $13 billion in leveraged acquisition debt and $31 billion in equity to fund his acquisition of Twitter. According to Bloomberg, $3 billion of the $13 billion was an unsecured loan with an interest rate of 11.75%.
The sales of Twitter is not helping in its financial situation
Additionally, it was reported that Morgan Stanley was leading negotiations with Twitter’s financiers to swap the high-interest-bearing portion of the debt with margin loans.
The 27-hour online auction, run by Heritage Global Partners Inc. It is the most recent indication of the change in the business, which Elon Musk, a billionaire, purchased for $44 billion last year.
The 631 lots of “surplus corporate office assets” include everything from the commonplace—industrial-scale cookware and standard office furnishings like whiteboards and desks—to the unusual—quirky signage and more than 100 boxes of KN95 masks. Various designer chairs, coffee makers, iMacs, and stationary bike stations with appliance charging ports are all included in the mix.
According to the organizers, the sale does not help Twitter’s financial situation. In a statement to Fortune magazine last month, a spokesperson of Heritage Global Partners said that “this auction has nothing to do with their financial position.” The auction company waited to answer inquiries submitted outside regular business hours.
Though Musk is trying to cut costs at the business drastically. Additionally Musk has neglected to make rent payments for another San Francisco address, which has resulted in a lawsuit, more money is probably welcome. Its Asia-Pacific headquarters in Singapore and other locations have also been affected. Adding to it the personnel there has been advised to vacate the premises and operate from home.
