Elon Musk Laments About X's Struggle to Survive Financially
Elon Musk, the thrilled founder of X, formerly known as Twitter, can't help but notice the significant impact his platform has on politics. Yet, financial figures don't reflect this influence, according to an internal email to employees. The Wall Street Journal reported Musk's grumble about X's financial situation; user growth is static, revenue isn't impressive, and they're barely breaking even. But Musk emphasized X's power in national debates over the past few months. Neither Musk nor X's CEO, Linda Yaccarino, have commented on the report.
Buying Twitter in October 2022 for around $44 billion, Musk brought X under his wing. As a private company, financial details aren't publicly available. Revenue has plummeted since acquisition, and Musk mentioned a 50% halving of earnings. Exact revenue figures remain undefined.
Initially, Musk's acquisition frightened off some advertisers. More departed after online findings showed their ads were linked to hate speech posts. Nevertheless, Yaccarino, responsible for NBC Universal advertising, said advertisers returned to the platform in 2023.
Meanwhile, Meta starts to run ads on X's competitor, Threads. With over 300 million monthly active users, Threads could draw in X advertisers. However, Meta CEO Mark Zuckerberg announced plans to loosen content restrictions, potentially reviving hate speech concerns.
Elon Musk's email acknowledges X's financial struggles but highlights its influence. Strategic shifts, like transforming X into an "everything app" with integrated features, aim to generate revenue. X Blue, a paid subscription service, aims to expand revenue sources beyond advertising.
Despite these efforts, X's reliance on advertising revenue, accounting for 90% of their 2022 income, leaves them vulnerable to shifting trends. Plus, Meta's Threads competition possibly attracts advertisers while potentially replicating X's hate speech problems.
Elon Musk, despite facing financial challenges with X, continually emphasizes its impact on national debates. In his email, Musk proposes turning X into an "everything app" to diversify revenue streams, including the introduction of X Blue, a subscription service.
Recognizing the potential threat, Meta's decision to run ads on Threads, X's competitor, might entice advertisers away from X. However, Musk's focus on X's influential role in politics remains undeterred, as shown by his continued involvement in various national debates.
