- X users are complaining about an influx of low-quality ads promoting crypto scams and AI “undressing” apps.
- The decline in reputable advertisers on X has made the platform more reliant on less reputable ad buyers.
- The exodus of advertisers, partially due to Elon Musk’s controversial behavior, has left X with a growing revenue gap.
Archive link: https://archive.ph/sbOxS
The main reason Twitter has a revenue gap is that Musk saddled it with $13bn of debt with his leveraged buyout. The business isn’t failing because of Musk’s management since then, it’s failing because that was the purpose derived from the purchase.
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The thing is, Twitter is liable for that debt, and they continue to fall further into the red every time they fail to pay their bills and every time they lose advertisers because ad aggregation is their business. So the business is definitely being detrimentally affected by his leadership because he is directly responsible for the underwritten debt of $13bn and the $14 million+interest in unpaid bills, plus probably more than $500 million in unpaid severance pay. He’s barely owned the company a year. And there are so many lawsuits that honestly he’ll end up owing more just from that.
They’re only liable for the debt so long as the business is operational, though. If the business folds, all the debt goes with it.
The point I’m making is that, while the decisions Musk has made since buying it have only made the business worse, ultimately the reason it’s going to fail is the huge amount of debt, which is primarily from the leveraged buyout. If anything, Musk’s antics are nothing but those of a clown trying to distract from and give plausible deniability against the real evil that’s happening.
They’re only liable for the debt from the buyout. The other stuff? We’ll see what the courts rule. But on the other hand, that assumes the banks were in on it.