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Elon Musk says Twitter’s ad revenue has dropped by 50 percent

Elon Musk reveals that Twitter is facing financial struggles due to a significant drop in ad revenue and a heavy debt burden. Despite efforts, the social media giant is still dealing with negative cash flow.

Musk Reports 50% Drop in Twitter's Advertising Revenue

Twitter, under the leadership of CEO Elon Musk, is struggling with negative cash flow due to an approximately 50% drop in advertising revenue and a heavy debt burden. Musk revealed these financial difficulties in a recent tweet. This came in the same week when Twitter's ad-revenue sharing program began paying some creators, including far-right influencers.

Musk remains hopeful, claiming that the social media platform could experience "all-time high device user seconds usage" in the coming week. He also mentioned that most of the advertisers who left Twitter following his takeover in October have returned or plan to return.

However, according to research firm Sensor Tower, advertising spending on Twitter fell by 89% to $7.6 million during a two-month period earlier this year. Additionally, Twitter owes annual interest payments of about $1.5 billion due to the debt incurred when Musk privatized the company for $44 billion. This situation is a clear indication that Musk's cost-cutting measures over the past year have not managed to stabilize the company's finances.

The company's newly appointed CEO, Linda Yaccarino, is faced with the challenging task of rebuilding Twitter's advertising base amidst these ongoing financial difficulties.