Elon Musk's X is in trouble

By LeftFooted | bitcoinea | 17 Oct 2023


Elon Musk bought Twitter, now X, for a reason. And he knows he overpaid for it. In a cringeworthy interview with the BBC - the one where Musk made the interviewer look like a biased fool - Musk admitted to buying Twitter to avoid a lengthy legal battle.He also said he knows $43 billion, which is what he paid for Twitter, was way too much.Shortly after acquiring Twitter, Musk began flipping the entire company upside down, changing the logo, promising to wage war at fake accounts and bots, rebranding to X, etc.Crucially, he also stepped down as CEO and named Linda Yaccarino instead.She was essentially hired about Musk is not exactly your average CEO and doesn't want / care / know how to talk to advertisers without scaring them away.The problem is, X is deep in the red. It still has high running costs, despite Musk firing half of the company's stuff, and is not growing at the expected rate. Further, X has a massive debt bill they have a a $1.2 billion a year, or $100 million per month. Musk didn't have all the cash to buy X so he had to sell stock and get $13 billion from banks, which he now has to pay back.         One solution would be to go public and make X Corp., Twitter / X parent company, a publicly traded company.At some point, this might just happen.

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LeftFooted
LeftFooted

I’m a left-footed duck that loves writing. I write about cars, watches, craft beer and, you’ve guessed it, crypto Also active on read.cash


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