December 4, 2023
2 mins read

X may go bankrupt under if advertisers keep fleeing

A new report by The Financial Times has claimed X will now turn to SMBs to shore up revenue after Musk angered big brands by supporting antisemitic content…Asian Lite News

The loans Elon Musk took out to buy Twitter (now called X) was about $13 billion and the social media company has to pay about $1.2 billion in interest payments every year.

As big advertisers quit the platform and X cannot pay the interest on its loans or pay employees, then it could actually go bankrupt, the BBC reported on Sunday. “But that would be an extreme scenario that Musk would surely want to avoid,” the report mentioned.

However, for a company he bought for $44 billion, bankruptcy might sound unthinkable but “it is possible”. Disney and Apple are no longer advertising on X and Musk told companies last week to “Go f*** yourself.”

Retail giant Walmart has confirmed that it is not advertising on X. “We aren’t advertising on X as we’ve found other platforms to better reach our customers,” a Walmart spokesperson was quoted as saying in reports.

The departure of Walmart adds to the growing list of firms leaving X after Musk endorsed an antisemitic post last month (for which, he apologised last week). Apple, Disney, IBM, Comcast and Warner Bros. Discovery are among the companies no longer buying ads on X.

Last year, around 90 per cent of X’s revenue came from advertising. Not any more. Musk has warned that the loss of big advertisers would spell the end of X. “If the company fails, it will fail because of an advertiser boycott. And that will be what bankrupts the company.” he said.

“What this advertising boycott is going to do is kill the company. And the whole world will know that those advertisers killed the company, and we will document it in great detail,” Musk had told the audience at The New York Times’ DealBook Summit.

In 2022, Twitter’s advertising revenue was around $4 billion. Insider Intelligence estimates that this year, it will drop to $1.9 billion. After Musk’s outburst against big advertisers, X is reportedly aiming to tap small and medium businesses (SMBs) to offset the advertising loss from big companies.

A new report by The Financial Times has claimed X will now turn to SMBs to shore up revenue after Musk angered big brands by supporting antisemitic content.

“Small and medium businesses are a very significant engine that we have definitely underplayed for a long time,” a company spokesperson was quoted as saying. “It was always part of the plan, now we will go even further with it,” the company added.

ALSO READ-Major US pharmacy chain Rite Aid files for bankruptcy

Previous Story

ZPM set to form government in Mizoram

Next Story

Google delays launch of its Gemini AI to next year

Latest from -Top News

India Eyes Global No. 3 Spot, Says Modi

The Prime Minister stated that people of India have resolved to make India a Developed Nation by 2047, when “we celebrate 100 years of Independence”….reports Asian Lite News Prime Minister Narendra Modi

The UK’s Net Zero Journey

Achieving net zero is not just a technological but also a political and cultural undertaking, writes Hasil Farooque In 2019, the United Kingdom officially committed itself to eradicate all greenhouse gas emissions

Bangladesh’s Dark Side Unveiled in Geneva

Organised by diaspora activists, the exhibit exposed rising rights abuses in Bangladesh post-Hasina…reports Asian Lite News In a bid to spotlight the deteriorating human rights situation and rising persecution of minorities in

India Outpaces Peers in Morgan Stanley Outlook

Global investment firm reaffirms India’s status as top-performing economy in latest growth outlook…reports Asian Lite News India is set to retain its position as the fastest-growing economy among nations tracked by Morgan
Go toTop

Don't Miss

Hackers post crypto scams on UK Army’s YouTube, Twitter accounts

The hacked Twitter account posted various retweets for NFT giveaways,

5.4 mn users’ data exposed as Musk reveals Twitter 2.0

Security expert Chad Loder first broke the news on Twitter