Twitter went public on the New York Stock Exchange nine years ago, but the company is “losing money” every year. Except for 2018 and 2019, the company made more than $1 billion in profits.
Despite the social network’s enormous political and cultural influence around the world, Twitter has rarely turned a profit since its initial public launch in 2013.
Twitter caused an immediate public uproar when it announced on April 26 that it had accepted a takeover offer from billionaire Elon Musk, who now owns electric car companies Tesla and SpaceX. Which begs the question: Will this deal lead to a brighter financial future for Twitter?
At the TED2022 conference earlier this month, billionaire Musk played down economics when discussing his plans to buy Twitter.
[Infographic] Billionaire Elon Musk buys Twitter
“It’s not the way to make money,” he said. the future of civilization. ”
Twitter went public on the New York Stock Exchange nine years ago, but the company has been “losing money” every year, except in 2018 and 2019, when it made more than $1 billion in profits.
Billionaire Musk paid more than $44 billion to acquire Twitter — a paltry amount compared to Facebook’s valuation of more than $500 billion.
Twitter’s revenue comes primarily from advertising, not users, and not on a basis that the company can offset financially.
Late last year, Twitter announced that it had 217 million users “potentially profitable” — by accessing ads on the online platform. However, that number still lags far behind Facebook’s 1.93 billion subscribers.
Twitter is expected to report first-quarter 2022 results on April 28.
The social network could bring in 3 cents a share and $1.2 billion in revenue, according to Wall Street analysts.
Billionaire Elon Musk has long insisted that profit wasn’t his top priority when he bought Twitter.
But one thing is for sure, the world’s richest man will find a solution, at least he won’t “throwing money out the window”, especially when he has to use his personal funds to buy companies. This company.
Statistics at the end of 2021 show that Twitter (headquartered in San Francisco, USA) has 7,500 employees worldwide.
Meanwhile, statistics as of the end of 2020 show that the company has about 1,500 executives worldwide.
Musk may also be looking to accelerate user growth, so he will focus on increasing ad revenue or adding new paid features to the online platform.