Elon Musk’s purchase of Twitter, now known as X, is grappling with serious financial trouble. An internal email from Musk to the staff indicated that “while there are signs of user growth and improvement in revenue, this is nowhere close” to attaining profitability.
The Twitter acquisition partly leveraged $13 billion in loans. Major banks were involved in this deal, including Bank of America, Barclays, and Morgan Stanley.
X is under severe financial pressure. The annual interest alone exceeds $1 billion, putting additional pressure on the company to become profitable. Since owning the company, Musk has made sweeping changes to the platform. Musk has rebranded Twitter to X, but the changes have also included content moderation, downsizing, and rolled out new features to improve the user experience.
This decline follows other dismal results throughout the group, with Fidelity’s declining impact estimating that X has lost almost 80 percent of its capital value under Musk. Most of this decline, of course, can be attributed to the loss of ad revenue. The platform’s CEO, Linda Yaccarino, has promised advertisers she is desperately trying to win back. The future is unclear, but definite efforts are made to stabilize.