Elon Musk said over the weekend that Twitter's advertising revenue has fallen by 50% since he bought the company, and that it's not cash flow positive.
“That’s according to a Monday report from The Wall Street Journal. Given Musk purchased Twitter for $44 billion late last year, the markdown would put the company’s current valuation at about $23 billion, based on Ark’s estimate.”
$23b is what it was actually valued before Musk crazily overpaid for it and took over.
Now, that estimate comes from an investor that financed part of that purchase (so they’re already suspect for paying double the odds back then) that still thinks there’s a great future ahead for Twitter under Musk - so it’s wildly optimistic.
The real value you could find someone paying for it would be more likely in the mid single digits.
It’s worth about $6b, this is not a good time for a social media company built around ad revenue that’s hemorrhaging customers and also happens to be saddled to the brim with short-term debt.
Is there ever a good time for that type of company? Hemorrhaging customers and being saddled to the brim with debt seem like pretty big problems at any time
“That’s according to a Monday report from The Wall Street Journal. Given Musk purchased Twitter for $44 billion late last year, the markdown would put the company’s current valuation at about $23 billion, based on Ark’s estimate.”
$23b is what it was actually valued before Musk crazily overpaid for it and took over.
Now, that estimate comes from an investor that financed part of that purchase (so they’re already suspect for paying double the odds back then) that still thinks there’s a great future ahead for Twitter under Musk - so it’s wildly optimistic.
The real value you could find someone paying for it would be more likely in the mid single digits.
It’s worth about $6b, this is not a good time for a social media company built around ad revenue that’s hemorrhaging customers and also happens to be saddled to the brim with short-term debt.
This whole comment should be bankrupt.
Is there ever a good time for that type of company? Hemorrhaging customers and being saddled to the brim with debt seem like pretty big problems at any time
When money is free debt is almost meaningless, now is when shit gets real.
It’s also haemorrhaging ad revenue, since Musk recently stated that ad volumes were down 50% or so.
Twitter ad buys were junk when it was considered a good site. I can’t imagine how poorly it’s doing since the users are largely bluetlicker shitstains