Topline
Twitter CEO Elon Musk claimed Sunday the social media company is “trending to breakeven,” just months after the wealthiest person in America told staff that “bankruptcy is not out of the question” shortly after his tumultuous term as Twitter’s owner began.
Tesla CEO Elon Musk leaves the Phillip Burton Federal Building on January 24, 2023 in San Francisco, … [+]
Key Facts
In a tweet replying to a Wall Street Journal article about his intense workload, Musk said his “last 3 months were extremely tough,” running Twitter, SpaceX and Tesla, saying he “wouldn’t wish that pain on anyone.”
Twitter “still has challenges, but is now trending to breakeven if we keep at it,” he continued, claiming he “had to save Twitter from bankruptcy,” though he did not cite any specific evidence of the company’s sudden turnaround.
Forbes Valuation
We estimate Musk is worth $184.2 billion, largely due to his stake in Tesla, making him the wealthiest person in America and the second-wealthiest person on Earth.
Key Background
Musk took over Twitter in late October after a $44 billion acquisition, and immediately executed massive layoffs, leaving hundreds of employees out of work. He previously claimed the company was losing $4 million a day, and in November he told staff “without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.” Musk has focused his efforts on Twitter Blue, a subscription service for $8 a month that allows users to receive a verified checkmark and see less ads, among other features. A recent auction at the company’s headquarters of old memorabilia, including a bust of Twitter’s logo brought in thousands of dollars. But it’s not clear whether sign-ups and Musk’s efforts were able to counterbalance the $18.5 billion in debt Twitter had in November, or the company’s dropping ad revenue. In the last three months of 2022, Twitter lost $270 million. The Information reported in January that ad sales were down 40%, compared to January of last year, and 500 of the company’s top advertisers had paused spending since Musk took control, sometimes citing Musk’s less stringent approach to content moderation.
Further Reading
Twitter Bird Statue Sells For $100,000 As Musk Auctions Off Old Company Mementos (Forbes)
Musk Tells Staff Twitter Could Go Bankrupt Without Financial Turnaround, Reports Say (Forbes)
Source: https://www.forbes.com/sites/marisadellatto/2023/02/05/elon-musk-claims-twitter-is-trending-to-breakeven-after-warning-of-bankruptcy/