Twitter’s Elon Musk Says Ad Revenues Down By 50 Percent And People Are Not Surprised – News18

Elon Musk has admitted that the financial situation of Twitter continues to take a hit as the ad revenue on the platform is down by 50 percent, which is a staggering revelation. But if anyone has been following Twitter’s business trajectory over the years, these reports are hardly surprising.

Musk reportedly paid $44 billion to buy Twitter last year, a valuation much higher than what Twitter should command. But that’s how it went, and Musk made a promise that he wants to monetise Twitter faster than the previous management.

He decided to bring a host of new features, including the use of Twitter Blue to monetise the platform. But he also acted against a large part of Twitter’s workforce, including engineers, which meant the app has gone through a major overhaul in a short time.

Twitter Blue has many features, including the promise of showing you less ads. While that is positive for the user, businesses see the repercussions of such a move, limiting their reach on the platform, which invariably results in these companies moving out of Twitter and taking their money to another platform.

Musk has talked about luxury in his statement regarding the negative revenues but most of his business decisions have brought the platform to its current position, which has only gotten worse since he took over the company.

Twitter has been finding it hard to pay the rent for its office, pay for the cloud service a few weeks back, reported massive outages during this timeframe and much more. The senior management that presided over the deal to sell Twitter has made a killing with its sale and Musk has managed to get himself a product that he might have to eventually give up and cut his losses sooner rather than later.