{"id":437906,"date":"2022-04-27T00:10:01","date_gmt":"2022-04-26T21:10:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/can-twitter-become-more-profitable-under-elon-musk\/"},"modified":"2022-04-27T00:10:01","modified_gmt":"2022-04-26T21:10:01","slug":"can-twitter-become-more-profitable-under-elon-musk","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/can-twitter-become-more-profitable-under-elon-musk\/","title":{"rendered":"#Can Twitter become more profitable under Elon Musk?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a42b70023fba\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a42b70023fba\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/can-twitter-become-more-profitable-under-elon-musk\/#%E2%80%9CCan_Twitter_become_more_profitable_under_Elon_Musk%E2%80%9D\" >&#8220;Can Twitter become more profitable under Elon Musk?&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CCan_Twitter_become_more_profitable_under_Elon_Musk%E2%80%9D\"><\/span>&#8220;Can Twitter become more profitable under Elon Musk?&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2022\/despite-its-influence.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2022\/despite-its-influence.jpg\" data-sub-html=\"Despite its influence in politics and culture, Twitter has struggled to turn a profit.\">\n<figure class=\"article-img\">\n            <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2022\/despite-its-influence.jpg\" alt=\"Despite its influence in politics and culture, Twitter has struggled to turn a profit\" title=\"Despite its influence in politics and culture, Twitter has struggled to turn a profit.\" width=\"800\" height=\"498\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                Despite its influence in politics and culture, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> has struggled to turn a profit.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>Since going public in 2013, Twitter has only occasionally turned a profit, even if it has a commanding role in politics and culture worldwide.<\/p>\n<p>                                                                                The company&#8217;s announcement on Monday that it had reached a deal for Tesla boss Elon Musk to buy it outright raises the question of whether this will lead to a brighter financial future for Twitter?<\/p>\n<p>Musk has downplayed economic considerations as a motivation for his purchase, saying earlier this month at the TED2022 conference that, &#8220;This is not a way to make money.&#8221;<\/p>\n<p>Musk continued, &#8220;It&#8217;s just that my strong, intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization.&#8221; <\/p>\n<p>Listed on the New York Stock Exchange for just under nine years, Twitter has posted a net loss every year, except 2018 and 2019 when it made a profit of just over $1 billion.<\/p>\n<p>Musk is paying above $44 billion for the company, an amount dwarfed by Facebook&#8217;s valuation of more than $500 billion.<\/p>\n<p>Twitter&#8217;s revenues are mainly derived from advertising rather than its user base, which isn&#8217;t large enough to make up its finances.<\/p>\n<p>At the end of last year, it claimed 217 million so-called &#8220;monetizable&#8221; users, who are exposed to advertising on the platform. That&#8217;s far from the 1.93 billion Facebook subscribers. <\/p>\n<p>Twitter is scheduled to release its first quarter results on Thursday. Wall Street expects earnings per share of three cents and revenues of $1.2 billion.<\/p>\n<p><b>Profitability not a priority<\/b><\/p>\n<p>Even if Twitter&#8217;s business prospects may not be his top concern, the world&#8217;s richest man will be looking to at least not lose money, especially since part of the acquisition could be financed by his own funds.<\/p>\n<p>In a securities filing released last week, Musk pointed to a $13 billion debt facility from a financing consortium led by Morgan Stanley, a separate $12.5 billion margin loan from the same bank, as well as $21 billion from his personal fortune as being behind the deal.<\/p>\n<p>Mr. Musk has not yet detailed how he intends to increase Twitter&#8217;s revenue.<\/p>\n<p>However in a tweet, he suggested lowering the price of Twitter Blue, the paid version of the network that costs $2.99 a month, granting a certified account to paying subscribers and removing advertising for these customers. He later withdrew the message.<\/p>\n<p>Another option in Musk&#8217;s hands would be to cut the workforce, which may align with his desire to lighten content moderation on the platform.<\/p>\n<p>At the end of 2021, Twitter, which is based in San Francisco, employed 7,500 people worldwide. It also had around 1,500 moderators worldwide as of 2020, according to a New York University business school study.<\/p>\n<p>Musk could also be looking to accelerate user growth and thus advertising revenue, or add new paid features to the platform.<\/p>\n<p>&#8220;He&#8217;s got his own kind of plan in place. If he can keep a model with a sub<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion-based offer alongside free options, that could work,&#8221; said Angelino Zino, an analyst at CFRA.<\/p>\n<p><b>Debt worries<\/b><\/p>\n<p>By financing a significant portion of the acquisition with bank loans, Musk will increase Twitter&#8217;s debt load, and on Monday, S&amp;P Global Ratings warned it was considering lowering Twitter&#8217;s rating from BB+.<\/p>\n<p>Zino noted that Musk may ultimately collaborate with other investors so as not to commit his fortune alone.<\/p>\n<p>&#8220;If he brings other great minds on the equity side of things, there might be greater probability of success on his end,&#8221; he said.\n                                                                                                                        <\/p>\n<hr\/>\n<div class=\"article-main__explore my-4 d-print-none\">\n<p>                                            Musk says he has financing to take Twitter buyout bid to investors\n                                        <\/p><\/div>\n<hr class=\"mb-4\"\/>\n<p class=\"article-main__note mt-4\">\n                                                \u00a9 2022 AFP<\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>                                                 <strong>Citation<\/strong>:<br \/>\n                                                 Can Twitter become more profitable under Elon Musk? (2022, April 26)<br \/>\n                                                 retrieved 26 April 2022<br \/>\n                                                 from https:\/\/techxplore.com\/<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\/2022-04-twitter-profitable-elon-musk.html<\/p>\n<p>                                            This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no<br \/>\n                                            part may be reproduced without the written permission. The content is provided for information purposes only.<\/p><\/div>\n<\/p><\/div>\n<p><script id=\"facebook-jssdk\" async=\"\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more Like this articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/science\/\" target=\"_blank\" rel=\"noopener\">Science category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/techxplore.com\/news\/2022-04-twitter-profitable-elon-musk.html\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Can Twitter become more profitable under Elon Musk?&#8221; Despite its influence in politics and culture, Twitter has struggled to turn a profit. Since going public in 2013, Twitter has only occasionally turned a profit, even if it has a commanding role in politics and culture worldwide. The company&#8217;s announcement on Monday that it had reached&#8230;<\/p>\n","protected":false},"author":1,"featured_media":437907,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/2022\/despite-its-influence.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-437906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/437906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=437906"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/437906\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/437907"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=437906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=437906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=437906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}