LONDON: Twitter has been saved from bankruptcy and the business is on track to break even, according to CEO Elon Musk.
In a message posted on the social media platform on Sunday, he said recent months had been difficult but the company is now in a stronger financial position, though there are further hurdles to overcome.
“Last three months were extremely tough, as had to save Twitter from bankruptcy, while fulfilling essential Tesla (and) SpaceX duties,” he wrote.
“Wouldn’t wish that pain on anyone. Twitter still has challenges, but is now trending to break even if we keep at it. Public support is much appreciated!
“To be extra clear, Twitter is definitely not financially healthy yet but is trending to be so. Lots of work still needed to get there.”
Musk posted his comment in response to a news report in The Wall Street Journal that examined his personal struggles while running several companies simultaneously, and questioned his physical well-being.
Following Musk’s takeover of Twitter in October, the company reported a massive drop in revenues from advertisers. This prompted the South African-born billionaire to say Twitter was like a “plane that is headed towards the ground at high speed with the engines on fire, and the controls don’t work,” and was at risk of going bust. He blamed the revenue decline on activists putting pressure on advertisers not to do business with the company after his takeover.
In his efforts to tackle the financial challenges Twitter faces, Musk has implemented a number of changes to the business and the platform. Shortly after completing his acquisition, he restructured the company and laid off about half of its 7,500 staff.
In an effort to enhance monetization of the platform, in December he revamped its Twitter Blue verification service in some territories and introduced a subscription-based tier that allows any user to obtain a “blue check” badge next to their name for $12 a month. The service expanded to six additional countries last week, including Saudi Arabia, increasing to 12 the total number in which it is available.
Also last week, Twitter announced it would end free access to its application programming interface, or API, which is used by third-party developers, and offer a basic paid tier instead. To further expand its revenue pool, the company was also reportedly considering offering popular usernames for sale at auction. In January, Twitter auctioned memorabilia from the company’s San Francisco headquarters.
Though the business appears to still be in a precarious financial state, the platform announced on Friday it will start sharing advertising revenue with some content creators.