Is X heading for bankruptcy?
Annual interest payments alone at $1.2 bn; As big advertisers quit the social media platform, X can’t pay interest on its loans or pay employees: Media reports
Ad Revenue At Stake
• 90% of X’s revenue came from ads last year
• Twitter’s ad revenue was $4 bn in 2022
• Ad revenue set to drop to $1.9 bn with exit of key big brand advertisers
• X may tap SMBs to offset advertising loss from big cos
London: The loans Elon Musk took out to buy Twitter (now called X) were about $13 billion and the social media company has to pay about $1.2 billion in interest payments every year.
As big advertisers quit the platform and X can’t pay the interest on its loans or pay employees, then it could actually go bankrupt, the BBC reported on Sunday. “But that would be an extreme scenario that Musk would surely want to avoid,” the report mentioned.
However, for a company he bought for $44 billion, bankruptcy might sound unthinkable, but “it is possible”. Disney and Apple are no longer advertising on X and Musk told companies last week to “Go f*** yourself.”
Retail giant Walmart has confirmed that it is not advertising on X. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson was quoted as saying in reports.
