In 2022, Elon Musk buys Twitter for around $44 billion, terminates numerous employees and finally renames the short message service X. But companies avoid X as an advertising platform.
According to media reports, Elon Musk’s online platform
When shares were allocated to employees, X was valued at a total of $19 billion, wrote Fortune magazine and the financial service Bloomberg, among others. Musk paid around $44 billion for Twitter in October 2022. He has since renamed the service to X and wants to use this as a basis to build an app with more functions including financial services.
The platform has suffered a significant decline in advertising revenue since the takeover. Musk has said several times that they are only about half as high as they once were on Twitter. Many companies avoid X as an advertising platform because they fear a negative environment for their brands. Musk is increasingly trying to fill the gap with subscription revenue. In addition, he took out loans of around $13 billion for the takeover – which are now burdened by X and are estimated to be due around $1.2 billion in interest per year.