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Musk says Twitter is losing cash because advertising is down and the company is carrying heavy debt

Jul 15, 2023, 4:35 PM

FILE - A Twitter app icon on a mobile phone is displayed April 26, 2017, in Philadelphia. Meta is p...

FILE - A Twitter app icon on a mobile phone is displayed April 26, 2017, in Philadelphia. Meta is poised to launch a new app that appears to mimic Twitter, marking a direct challenge to the social media platform owned by billionaire Elon Musk. A listing for the app, called Threads, appeared on Apple’s App Store, indicating it would debut as early as Thursday, July 6, 2023. (AP Photo/Matt Rourke, File)
Credit: ASSOCIATED PRESS

(AP Photo/Matt Rourke, File)

Elon Musk says Twitter is still losing cash because advertising has dropped by half.

In a reply to a tweet offering business advice, Musk tweeted Saturday, “We’re still negative cash flow, due to (about a) 50% drop in advertising revenue plus heavy debt load.”

“Need to reach positive cash flow before we have the luxury of anything else,” he concluded.

Ever since he back on the site.

In April, Musk said most of the advertisers who left had returned and that the company might become cash-flow positive in the second quarter.

In May, he hired a new CEO, Linda Yaccarino, an NBCUniversal executive with deep ties to the advertising industry.

But since then, Twitter has upset some users by imposing scraping of potentially valuable data.

Twitter got a new competitor this month when Facebook owner Meta launched a text-focused app, Threads, and gained threatening legal action.

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Musk says Twitter is losing cash because advertising is down and the company is carrying heavy debt