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Elon Musk says Twitter cash flow is negative due to ad revenue declines, ‘heavy debt’



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SpaceX, Twitter and electric car maker Tesla CEO Elon Musk looks on as he speaks during his visit at the Vivatech technology startups and innovation fair at the Porte de Versailles exhibition center in Paris, on June 16, 2023. (Photo by Alain JOCARD / AFP) (Photo by ALAIN JOCARD/AFP via Getty Images)Alain Jocard | Afp | Getty ImagesTesla and SpaceX CEO Elon Musk, who is also CTO and executive chairman of Twitter, said early Saturday morning that cash flow remains negative at the social media company because of a nearly 50% drop in advertising revenue coupled with “heavy debt.””Need to reach positive cash flow before we have the luxury of anything else,” Musk wrote in response to a tweet.Musk took over Twitter in October of last year in a deal valued at around $44 billion, including about $13 billion in debt. He sold billions of dollars worth of his Tesla shares in part to finance that deal.By January, hundreds of advertisers had reduced or halted their ad spending on Twitter in response to Musk making steep staff cuts at the company, and implementing changes to the platform, especially restoring previously banned accounts and changing its approach to content moderation.In April, Musk told a BBC reporter that “almost all” advertisers had resumed buying ads on Twitter. He also claimed at that time that the company was “roughly breakeven,” and …

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