According to a Bloomberg report, the initial interest payment, estimated at $300 million, was due and was paid on Friday. It was also reported that Twitter paid that amount to seven banks. Earlier, the publication had said that Twitter would have to pay around $1 billion towards its debt every year.
Annual interest could exceed $1.2 billion
The report also said that the annual interest payments to Twitter could exceed $1.2 billion. Allegedly, before musk When Twitter took over, the company was paying around $100 million in annual interest.
Twitter’s finances dwindle
Twitter has been struggling financially since Musk’s acquisition. Tens of millions of advertisers stopped advertising due to concerns over the platform’s new content moderation policies, which took a huge toll on the company’s advertising revenue.
To recover from the losses, Musk took some steps, including launching a paid Blue subscription, selling office furniture, downsizing the workforce, reducing benefits to employees, and incentivizing companies to advertise on social media platforms.
Twitter lost 500 of its top advertisers
Earlier this month, a report in The Information cited a person with direct knowledge of the matter as saying that the company’s daily revenue on January 17 was down 40% compared to the same day a year ago.
Siddhartha Rao, an engineering manager overseeing staff working on Twitter’s advertising business, reportedly told employees that more than 500 of Twitter’s top advertisers had stopped spending on Twitter since Musk took over in late October. have make.
The ‘silver lining’ for oysters
A recent report from Axios said that more than three dozen news outlets, media companies and sports leagues were planning content sponsorship deals on Twitter in the first half of this year.
“Media companies, newsrooms and sports leagues are taking too much revenue and marketing leverage to leave the platform,” Axios said. Musk shared the report on Twitter with the caption, “The party’s on!!”
Twitter Blue Tick Subscription: All You Need To Know