Last month, Musk joked that he had acquired the world’s largest non-profit
Twitter reported a 40 percent drop in ad revenue and adjusted earnings for December after advertisers stopped spending.
The Wall Street Journal, citing people familiar with the matter, announced on Friday that advertisers cut their spend on Twitter following Elon Musk’s chaotic $44 billion acquisition of the social media platform at the end of October.
Just a week after taking over the social media giant, Musk lamented the company’s “significant drop in revenue,” which he attributed to “activist groups putting pressure on advertisers.”
Large companies such as General Mills, United Airlines and Oreo Mondelez were among the firms that cut costs due to concerns about content moderation.
Musk said in December that the company should reach “roughly break even cash flow” in 2023. In January, Twitter made the first interest payment on a loan banks provided to finance Musk’s purchase.
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In early February, Musk said the previous three months had been “extremely tough” as he “had to bail Twitter out of bankruptcy” while running Tesla and SpaceX.
Musk ridiculed himself and Twitter by calling it “the world’s largest non-profit organization” as it loses millions of dollars a day.
“Say what you want about me but I purchased the world’s largest nonprofit for $44 billion lol,” the billionaire tweeted.
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FOX Business has reached out to Musk and Twitter for comment.
Brec Dumas of FOX Business and Reuters contributed to this report.
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