Advertising share of Elon Musk’s
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san francisco (Uttam Hindu News): Bloomberg reports that ad sales on X are reportedly about half a billion below projections for 2023. Several top advertisers have left the platform over their support of anti-Semitism. According to the report, citing sources, X generated more than $600 million in ad revenue in each of the first three quarters of the year, and is expecting a similar performance in the current period.
The company projects earnings of more than $1 billion per quarter in 2022. X head of business operations Joe Benaroch was quoted as saying that they are no longer Twitter and are not measuring themselves by the old Twitter metrics in both revenue and user metrics. The loan that Musk took out to buy Twitter (now called X) was around $13 billion and the social media company has to pay around $1.2 billion in interest every year.
The BBC reported earlier this month that major advertisers had left the platform. If “But this would be an extreme scenario that Musk would certainly want to avoid,” the report said.
Although bankruptcy may seem unimaginable for a company they bought for $44 billion, it is possible. Disney and Apple are no longer advertising on X. Retail giant Walmart has confirmed that it is not advertising on X. Walmart’s departure adds to the list of companies leaving X after Musk endorsed anti-Semitic posts last month (for which he apologized).
Apple, Disney, IBM, Comcast and Warner Bros. Discovery are among the companies that are no longer advertising on X. Last year, about 90 percent of X’s revenue came from advertising. Musk has warned that the loss of big advertisers will lead to the end of X. “If the company fails, it will fail because of a boycott by advertisers. And this will make the company bankrupt.”
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