Musk Describes Twitter’s Finances as a ‘Plane That Is Headed Towards the Ground at High Speed’
Twitter owner and CEO Elon Musk is painting a bleak picture of the company’s financial situation. During an interview on Twitter Spaces, the billionaire voiced optimism about Twitter’s financial prospects for 2023…
Twitter owner and CEO Elon Musk is painting a bleak picture of the company’s financial situation.
During an interview on Twitter Spaces, the billionaire voiced optimism about Twitter’s financial prospects for 2023.
However, he described the finances from before his takeover as a burning plane crash.
“Because of the nature of this transaction where there’s $12.5 billion of debt and the Fed rate has been going crazy, there’s on the order of a billion and a half-ish of debt servicing that’s required,” Musk began as he explained the company was on track to lose $3 billion in the next year.
He explained the financial situation is why he “spent the last five weeks cutting costs like crazy.”
Listen to his comments below:
Musk also shared he has been working on getting advertisers to help boost revenue:
“I’ve spoken to a number of the advertisers. Their requests are not fuzzy or irrational or anything. They’re, like, quite reasonable. They’re like, just show us an ROI that makes sense. And I’m like, yes, I agree. If I were in that position, I would also want an ROI that makes sense, especially when we’re headed into difficult economic times where these questions are asked a lot more than in prosperous times.”