We could be watching Twitter go from a prominent social media platform to a thing of the past in real-time! Elon Musk recently took charge of Twitter after a 44 billion acquisition and quickly started making radical changes to the platform ranging from the $8 verified check and suspending accounts left and right. These decisions made by Musk have surely changed people’s perception of the platform as it is facing a considerable backlash. Now, it looks like Twitter is facing a threat of bankruptcy, as Elon himself has raised this concern.
Twitter to face bankruptcy?
Bloomberg was one of the first portals to report that Twitter is facing a bankruptcy threat. Twitter’s new CEO Elon Musk has raised concerns about the social media platform going bankrupt on the same day Twitter received a warning from a United States regulator. Musk told Twitter employees that he could not rule out bankruptcy just two weeks after buying the company. As per reports, Musk held the first meeting with his Twitter employees recently where he warned that the company may end up losing billions of dollars in 2023.
According to Musk, the company was losing more than $4 million on a daily basis as more and more advertisers started fleeing the platform once he took over. Reports suggest that the massive 44 billion deal to buy Twitter has reportedly put Twitter’s finances in a precarious position. Reports suggest that Twitter was brought by Musk with $13 billion in debt, on which it faces interest payments of $1.2 billion in the next 12 months. These payments exceed Twitter’s disclosed cash flow of $1.1 billion.
If the bankruptcy threat is actually looming over Twitter then Elon’s $8 Twitter Blue subscription could become the shining light in the dark. However, with easy access to a verified mark, more and more parody accounts are popping up on the platform which is exactly the opposite of what Musk promised. Twitter’s boss now has to figure out how to manage the parody accounts menace while also dealing with the bankruptcy threat.