‘Bankruptcy is never out of the question’

It’s been two weeks since entrepreneur Elon Musk took over Twitter, and in one of his first contacts with employees, on Thursday (10), the news wasn’t good at all. He said at a meeting at the company’s headquarters, according to sources that were heard by international media, that “bankruptcy is not out of the question.”

Musk was referring to the platform’s financial losses. In fact, Twitter is not one of the social networks More profitable, and to make matters worse, advertisers decided to pause ad spending after the entrepreneur bought the social network — many feared a drop in content moderation.

Among the brands that have said they will stop advertising on Twitter in the US range from companies in the health sector – such as Pfizer – to companies in the automotive sector, such as GM, Audi and Volkswagen. It is worth noting that the latter is a direct competitor to the electric car manufacturer Tesla, owned by Musk.

During a meeting with employees, the businessman said that in 2023, “Twitter could have a negative cash flow of several billion dollars.” For this reason, he is betting, for example, on the Twitter Blue subscription system.

By paying a monthly fee ($8 in the US, about R$43 at the current exchange rate), Twitter users will be able to get a verification stamp, see fewer ads, as well as get other benefits, such as the ability to post larger videos or Appear prominently on the network.

“The reason we’re going to invest in subscribers is to keep Twitter alive,” Elon Musk said at the staff meeting.

Twitter started launching this new platform last Wednesday (9). as a result of, Many people have begun to create “official fakes”, posing as companies and personalities🇧🇷 The company has temporarily disabled the feature.

At the meeting, Musk also announced that all Twitter employees should resume face-to-face work and that Everyone was having ‘hard times’ Because of the terrible economic scenario in the United States.

*With information from Reuters and Engadget