Elon Musk says Twitter cash flow is negative due to ad revenue declines, 'heavy debt'
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Twitter owner and CTO Elon Musk said early Saturday that cash flow at the social media company remains negative after a nearly 50% drop in advertising revenue coupled with "heavy debt."
The Tesla and SpaceX CEO took over Twitter last year in a $44 billion buyout that included about $13 billion in debt.
In recent days, Twitter began doling out a share of its ad revenue to select content creators on its platform.
Tesla and SpaceX CEO Elon Musk , who is also CTO and executive chairman of Twitter, said early Saturday morning that cash flow remains negative at the social media company because of a nearly 50% drop in advertising revenue coupled with "heavy debt."
"Need to reach positive cash flow before we have the luxury of anything else," Musk wrote in response to a tweet.
Musk took over Twitter in October of last year in a deal valued at around $44 billion, including about $13 billion in debt. He sold billions of dollars worth of his Tesla shares in part to finance that deal.
By January, hundreds of advertisers had reduced or halted their ad spending on Twitter in response to Musk making steep staff cuts at the company, and implementing changes to the platform, especially restoring previously banned accounts and changing its approach to content moderation.
In April, Musk told a BBC reporter that "almost all" advertisers had resumed buying ads on Twitter. He also claimed at that time that the company was "roughly breakeven," and expected to become cash flow positive within the next quarter.
His statement about Twitter's cash flow problems today comes a little over one month since Linda Yaccarino, who previously ran global advertising for Comcast's NBCUniversal, took on the role of Twitter CEO. NBCUniversal is the parent company of CNBC.
Yaccarino's appointment inspired hope among media industry insiders that Twitter would address immediate challenges to its ad business.
In recent days, Twitter began doling out a share of its ad revenue to select content creators on its platform. Musk's remarks were made in response to followers who wanted to know why that revenue-sharing program was so limited in scope.
A number of widely followed accounts on Twitter posted that they were dismayed they did not qualify to earn income from the program yet. As The Verge previously reported, the revenue-sharing program was available only to users who paid for a Twitter Blue verified subscription, and amounts paid were "driven by ads placed in the replies to tweets."
Influencer Andrew Tate — who espouses misogynistic views online, and faces a trial on charges of rape, human trafficking and forming a criminal gang to sexually exploit women in Romania -- posted that Twitter paid him more than $20,000. Tate has sued the accusers who made those charges.
Several right-wing influencers also posted about receiving Twitter payments, along with fans and promoters of Tesla stock and products, including Omar Qazi (who uses the handle "@WholeMarsBlog" on Twitter) and Sawyer Merritt, who each posted about netting more than $5,000.
Mainstream and other influencers who shared details about their Twitter income included Brian and Ed Krassenstein, Mr. Beast and the account @interneth0f (which stands for Internet Hall of Fame). The Internet Hall of Fame posts screenshots of other people's popular posts from social media and re-circulates them.
It's not clear how much Twitter paid creators in total in this first round of payments. Twitter sent an automated reply with a crude symbol in response to CNBC's request for comment on Saturday. The parent company of Twitter, X Corp., is facing myriad lawsuits from former employees and vendors over non-payment of bills and severance.
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Skip Navigation. watch live. Markets. Pre-Markets. U.S. Markets. Currencies. Cryptocurrency. Futures & Commodities. Bonds. Funds & ETFs. Business. Economy. Finance. Health & Science. Media. Real Estate. Energy. Climate. Transportation. Industrials. Retail. Wealth. Life. Small Business. Investing. Personal Finance. Fintech. Financial Advisors. Options Action. ETF Street. Buffett Archive. Earnings. Trader Talk. Tech. Cybersecurity. Enterprise. Internet. Media. Mobile. Social Media. CNBC Disruptor 50. Tech Guide. Politics. White House. Policy. Defense. Congress. Equity and Opportunity. CNBC TV. Live TV. Live Audio. Business Day Shows. Entertainment Shows. Full Episodes. Latest Video. Top Video. CEO Interviews. CNBC Documentaries. CNBC Podcasts. CNBC World. Digital Originals. Live TV Schedule. Watchlist. Investing Club. Trust Portfolio. Analysis. Trade Alerts. Meeting Videos. Homestretch. Jim's Columns. Education. PRO. Pro News. Pro Live. Market Forecast. Subscribe. Sign In. Menu. Make It. select ALL SELECT Credit Cards Loans Banking Mortgages Insurance Credit Monitoring Personal Finance Small Business Taxes Help for Low Credit Scores Investing SELECT All Credit Cards Find the Credit Card for You Best Credit Cards Best Rewards Credit Cards Best Travel Credit Cards Best 0% APR Credit Cards Best Balance Transfer Credit Cards Best Cash Back Credit Cards Best Credit Card Welcome Bonuses Best Credit Cards to Build Credit SELECT All Loans Find the Best Personal Loan for You Best Personal Loans Best Debt Consolidation Loans Best Loans to Refinance Credit Card Debt Best Loans with Fast Funding Best Small Personal Loans Best Large Personal Loans Best Personal Loans to Apply Online Best Student Loan Refinance SELECT All Banking Find the Savings Account for You Best High Yield Savings Accounts Best Big Bank Savings Accounts Best Big Bank Checking Accounts Best No Fee Checking Accounts No Overdraft Fee Checking Accounts Best Checking Account Bonuses Best Money Market Accounts Best CDs Best Credit Unions SELECT All Mortgages Best Mortgages Best Mortgages for Small Down Payment Best Mortgages for No Down Payment Best Mortgages with No Origination Fee Best Mortgages for Average Credit Score Adjustable Rate Mortgages Affording a Mortgage SELECT All Insurance Best Life Insurance Best Homeowners Insurance Best Renters Insurance Best Car Insurance Travel Insurance SELECT All Credit Monitoring Best Credit Monitoring Services Best Identity Theft Protection How to Boost Your Credit Score Credit Repair Services SELECT All Personal Finance Best Budgeting Apps Best Expense Tracker Apps Best Money Transfer Apps Best Resale Apps and Sites Buy Now Pay Later (BNPL) Apps Best Debt Relief SELECT All Small Business Best Small Business Savings Accounts Best Small Business Checking Accounts Best Credit Cards for Small Business Best Small Business Loans Best Tax Software for Small Business SELECT All Taxes Best Tax Software Best Tax Software for Small Businesses Tax Refunds SELECT All Help for Low Credit Scores Best Credit Cards for Bad Credit Best Personal Loans for Bad Credit Best Debt Consolidation Loans for Bad Credit Personal Loans if You Don't Have Credit Best Credit Cards for Building Credit Personal Loans for 580 Credit Score or Lower Personal Loans for 670 Credit Score or Lower Best Mortgages for Bad Credit Best Hardship Loans How to Boost Your Credit Score SELECT All Investing Best IRA Accounts Best Roth IRA Accounts Best Investing Apps Best Free Stock Trading Platforms Best Robo-Advisors Index Funds Mutual Funds ETFs Bonds. USA. INTL. watch live. Search quotes, news & videos. Watchlist. SIGN IN. Create free account. Markets. Business. Investing. Tech. Politics. CNBC TV. Watchlist. Investing Club. PRO. Menu. Tech. Amanda Macias. @amanda_m_macias. Lora Kolodny. @lorakolodny. WATCH LIVE. Twitter owner and CTO Elon Musk said early Saturday that cash flow at the social media company remains negative after a nearly 50% drop in advertising revenue coupled with "heavy debt." The Tesla and SpaceX CEO took over Twitter last year in a $44 billion buyout that included about $13 billion in debt. In recent days, Twitter began doling out a share of its ad revenue to select content creators on its platform. Tesla and SpaceX CEO Elon Musk , who is also CTO and executive chairman of Twitter, said early Saturday morning that cash flow remains negative at the social media company because of a nearly 50% drop in advertising revenue coupled with "heavy debt." "Need to reach positive cash flow before we have the luxury of anything else," Musk wrote in response to a tweet. Musk took over Twitter in October of last year in a deal valued at around $44 billion, including about $13 billion in debt. He sold billions of dollars worth of his Tesla shares in part to finance that deal. By January, hundreds of advertisers had reduced or halted their ad spending on Twitter in response to Musk making steep staff cuts at the company, and implementing changes to the platform, especially restoring previously banned accounts and changing its approach to content moderation. In April, Musk told a BBC reporter that "almost all" advertisers had resumed buying ads on Twitter. He also claimed at that time that the company was "roughly breakeven," and expected to become cash flow positive within the next quarter. His statement about Twitter's cash flow problems today comes a little over one month since Linda Yaccarino, who previously ran global advertising for Comcast's NBCUniversal, took on the role of Twitter CEO. NBCUniversal is the parent company of CNBC. Yaccarino's appointment inspired hope among media industry insiders that Twitter would address immediate challenges to its ad business. In recent days, Twitter began doling out a share of its ad revenue to select content creators on its platform. Musk's remarks were made in response to followers who wanted to know why that revenue-sharing program was so limited in scope. A number of widely followed accounts on Twitter posted that they were dismayed they did not qualify to earn income from the program yet. As The Verge previously reported, the revenue-sharing program was available only to users who paid for a Twitter Blue verified subscription, and amounts paid were "driven by ads placed in the replies to tweets." Influencer Andrew Tate — who espouses misogynistic views online, and faces a trial on charges of rape, human trafficking and forming a criminal gang to sexually exploit women in Romania -- posted that Twitter paid him more than $20,000. Tate has sued the accusers who made those charges. Several right-wing influencers also posted about receiving Twitter payments, along with fans and promoters of Tesla stock and products, including Omar Qazi (who uses the handle "@WholeMarsBlog" on Twitter) and Sawyer Merritt, who each posted about netting more than $5,000. Mainstream and other influencers who shared details about their Twitter income included Brian and Ed Krassenstein, Mr. Beast and the account @interneth0f (which stands for Internet Hall of Fame). The Internet Hall of Fame posts screenshots of other people's popular posts from social media and re-circulates them. It's not clear how much Twitter paid creators in total in this first round of payments. Twitter sent an automated reply with a crude symbol in response to CNBC's request for comment on Saturday. The parent company of Twitter, X Corp., is facing myriad lawsuits from former employees and vendors over non-payment of bills and severance. VIDEO. 6:41. 06:41. Last Call. Subscribe to CNBC PRO. Licensing & Reprints. CNBC Councils. Select Personal Finance. CNBC on Peacock. Join the CNBC Panel. Supply Chain Values. Select Shopping. Closed Captioning. Digital Products. News Releases. Internships. Corrections. About CNBC. Ad Choices. Site Map. Podcasts. Careers. Help. Contact. News Tips. Got a confidential news tip? We want to hear from you. Get In Touch. Advertise With Us. Please Contact Us. CNBC Newsletters. Sign up for free newsletters and get more CNBC delivered to your inbox. Sign Up Now. Get this delivered to your inbox, and more info about our products and services. Privacy Policy. |. Do Not Sell My Personal Information. |. CA Notice. |. Terms of Service. © 2023 CNBC LLC. All Rights Reserved. A Division of NBCUniversal. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Market Data Terms of Use and Disclaimers. Data also provided by.