NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Twitter's woes continue: Revenue falls 40% as interest payment nears
    Business

    Twitter's woes continue: Revenue falls 40% as interest payment nears

    Twitter's woes continue: Revenue falls 40% as interest payment nears
    Written by Athik Saleh
    Jan 18, 2023, 12:33 pm 2 min read
    Twitter's woes continue: Revenue falls 40% as interest payment nears
    Twitter will have to pay $1.5 billion in interest payment this month

    Ever since Elon Musk took over Twitter, he has been on a mission to find new revenue-generating opportunities for the platform. It seems that he is yet to hit the gold in that regard. According to Zoë Schiffer, managing editor of Big Tech-focused publication Platformer, Twitter's quarterly revenue is down 40% year-over-year. In 2021, the company posted a net loss of $221 million.

    Why does this story matter?

    • Musk has been focused on making Twitter less dependent on ad revenue, which has been its chief source of revenue for a long time. One of the first things he did after acquiring the social media platform was to make the blue check mark a paid service.
    • Twitter has also been dropping several new features to make the platform more creator-friendly.

    Twitter must pay first installment of debt by January end

    Musk acquired Twitter for $44 billion. Out of the $44 billion, $13 billion came from banks such as Morgan Stanley, Bank of America, Barclays, BNP Paribas, Mizuho, MUFG, and Societe Generale. Per reports, Twitter has to pay the first installment of interest payment related to the debt by the end of January. The due amount is said to be $1.5 billion.

    Defaulting interest payment may end badly for Twitter

    The falling revenue does not bear well for Twitter as the date of interest payment fast approaches. If the company fails to make the payment, it will join the infamous NCAA (no-coupon-at-all) club. The default would probably result in the social media company filing for bankruptcy. Musk had said in November that Twitter is on a "fast lane to bankruptcy."

    Are Twitter's woes exaggerated? 

    Twitter's woes may be exaggerated. The quarter where the company's revenue reportedly fell was the first three months of Musk's reign. Musk himself recently admitted that the company is no longer facing the threat of bankruptcy. During an episode of the All-In Podcast last month, Musk said that Twitter's cost structure has improved by three or four factors.

    Musk might cut a new deal with lenders

    It is fair to assume that Musk may have some contingency in mind if Twitter fails to pay interest. Considering the issues he's facing at Tesla, Musk may not offload more Tesla stocks. Musk can use Twitter's limited cash reserve. He might also cut a new deal with the lenders, such as a debt-for-equity exchange at a discount to the debt's face value.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Twitter
    Elon Musk

    Latest

    Maserati MC20 Cielo v/s Ferrari Portofino M: Which is better? Maserati
    Washington Sundar's maiden T20I half-century goes in vain Washington Sundar
    New Zealand beat India in 1st T20I, spinners dazzle India vs New Zealand Cricket
    SA's Rassie van der Dussen hammers fourth ODI hundred: Stats Rassie van der Dussen

    Twitter

    Zachary Levi's 'Shazam! Fury of the Gods' new trailer out! Warner Bros
    Two ShareChat founders step down soon after layoffs: Here's why Google
    Kangana Ranaut is back on Twitter! Read her first tweet Kangana Ranaut
    BBC Modi documentary: Opposition slams 'censorship'; shares alternative documentary links BBC

    Elon Musk

    Elon Musk's Twitter to get fewer advertisements, ad-free subscription plan Twitter
    What's happening at Twitter: From auctioning furniture to falling revenues  Twitter
    Falling revenue and estranged advertisers leave Twitter in a turmoil Twitter
    Twitter tells Singapore staff to clear desks and work remotely Twitter

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023