Last Updated on November 13, 2022 by Bitfinsider
Elon Musk, the billionaire who paid $44 billion for Twitter only two weeks ago, informed all Twitter staff members in his first email on Wednesday of the social media platform’s dire financial predicament. Musk wrote: “There is no way to sugarcoat the message,” and that “Frankly, the economic picture ahead is dire.”
He continued by explaining how a company like Twitter, which is heavily reliant on advertising in a difficult economic climate, is in a worse economic condition. He emphasized that “70% of our advertising is brand, rather than specific performance, which makes us doubly vulnerable,” he stressed.
“That is why the priority over the past ten days has been to develop and launch Twitter Blue Verified subscriptions,” Musk added. He elaborate that “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn. We need roughly half of our revenue to be subscription.”
In order to “ensure that Twitter continues to be appealing to advertisers,” Musk said the social media firm will remain “significantly reliant on advertising.” The billionaire highlighted that success would need a lot of effort and that the path ahead was difficult.
The CEO of Tesla and SpaceX also mentioned a change in Twitter’s policy that forbids remote employment. Starting on Thursday, all employees of the social media behemoth must put in a minimum of 40 hours a week at work, unless they are physically unable to do so or have urgent personal commitments.
Musk also called a Wednesday all-hands emergency meeting for Twitter staff. He allegedly stated: “Bankruptcy isn’t out of the question.”
Earlier, Musk acknowledged the flaws in his new $8 monthly authentication mechanism on Wednesday. He tweeted, “We have no choice but to eliminate legacy Blue in the coming months. Far too many corrupt legacy Blue’verification’ checkmarks exist. But he argued that since he took over the site, Twitter usage had increased.
This week, when Twitter submitted papers to the U.S. Financial Crimes Enforcement Network (FinCEN) to begin a payment business, he described how Twitter could make money as a payment company.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.