{"id":1784660,"date":"2022-12-23T06:05:42","date_gmt":"2022-12-23T11:05:42","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1784660"},"modified":"2022-12-23T07:34:16","modified_gmt":"2022-12-23T12:34:16","slug":"elon-musk-optimistic-twitter-will-be-cash-flow-break-even-next-year","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-optimistic-twitter-will-be-cash-flow-break-even-next-year\/","title":{"rendered":"Elon Musk Optimistic Twitter Will Be Cash-Flow Break-Even Next Year"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Felon-musk-optimistic-twitter-will-be-cash-flow-break-even-next-year%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1784660&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a href=\"https:\/\/www.theepochtimes.com\/t-twitter\">Twitter<\/a> CEO <a href=\"https:\/\/www.theepochtimes.com\/t-elon-musk\">Elon Musk<\/a> expects the social media platform to be \u201ccash-flow break-even\u201d next year as the company\u2019s cost-cutting and new revenue-generating measures averted a $3 billion shortfall.<\/p>\n<p>During a <a href=\"https:\/\/twitter.com\/thesonofwalkley\/status\/1605448523419451392?s=46&#038;t=UQG5YsaqIlVfZ4PHGTs-nQ\">Twitter Spaces discussion<\/a> on Dec. 21, Musk revealed that the business was headed toward a \u201cnegative cash-flow situation of $3 billion a year\u201d when he became the owner. This explains why he has been \u201ccutting costs like crazy.\u201d<\/p>\n<p>\u201cThat\u2019s the reason for my actions,\u201d he said during the chat, noting that he\u2019s not \u201cnaturally capricious.\u201d<\/p>\n<p>\u201cWe have an emergency fire drill on our hands. This company is like, basically, you\u2019re in a plane that is headed toward the ground at high speed with the engines on fire and the controls don\u2019t work.\u201d<\/p>\n<p>In October, the Tesla Motors CEO slashed about two-thirds of the social media outlet\u2019s workforce, totaling about 7,500 employees. He also ended many corporate perks, including free lunches, home internet, day care, wellness programs, and training and development.<\/p>\n<figure id=\"attachment_4841193\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/11\/04\/GettyImages-1244297092-e1667528582860-1200x719.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-4841193\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/GettyImages-1244297092-e1667528582860-600x360-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"360\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4841193\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/GettyImages-1244297092-e1667528582860-600x360-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"360\" \/><\/noscript><\/figcaption><\/a> The Twitter logo is seen on a sign on the exterior of Twitter headquarters in San Francisco on Oct. 28, 2022. (Constanza Hevia\/AFP via Getty Images)<\/figure>\n<p>Musk has also introduced various measures with the chief objective of bolstering revenues. The most notable change was Twitter Blue, a subscription service that charged users $8 per month for verification, which offers longer video uploads, an edit button, and priority ranking.<\/p>\n<p>As a result of these efforts, Musk is optimistic about 2023.<\/p>\n<p>\u201cWith the changes that we\u2019re making here on massively reducing the burn rate and building subscriber revenue, I now think that Twitter will, in fact, be OK next year,\u201d Musk said. \u201cI think we will be roughly cash-flow break-even. That\u2019s what I expect for next year.\u201d<\/p>\n<p>According to Twitter\u2019s last public annual report (<a href=\"https:\/\/s22.q4cdn.com\/826641620\/files\/doc_financials\/2021\/ar\/FiscalYR2021_Twitter_Annual_-Report.pdf\">pdf<\/a>), the company\u2019s total costs were about $5.6 billion in 2021. Musk projected that it was poised to spend another $5 billion next year, in addition to debt payments, which would raise total expenses to $6.5 billion.<\/p>\n<p>In response to MIT research scientist and popular podcaster Lex Fridman, Musk <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1604626103326253056\">revealed<\/a> that Twitter \u201chas been in the fast lane to bankruptcy since May.\u201d<\/p>\n<h2>Is Elon Musk Raising Funds?<\/h2>\n<p>Since a photo of Musk, Jared Kushner, and Mansoor bin Ebrahim Al-Mahmoud, CEO of the $50 billion Qatar Investment Authority fund, was shared online, there has been growing speculation that he might have met with investors from Qatar or Saudi Arabia.<\/p>\n<p>The Qatari sovereign wealth fund invested approximately $375 million in Musk\u2019s purchase of Twitter.<\/p>\n<p>\u201cThe second point about the photo? It proves Musk was geographically in the vicinity of Saudi Arabia\u2014home to Twitter\u2019s biggest investors. Did he drop in, and did they\u2014along with millions of people who use Twitter every day\u2014pose some serious questions about his leadership during the past couple of months?\u201d BBC technology editor Zoe Kleinman <a href=\"https:\/\/www.bbc.com\/news\/technology-64003232\">asked<\/a>.<\/p>\n<p>Other reports surfaced earlier this week that Musk\u2019s family office approached investors to raise new funds amid enormous debt interest payments.<\/p>\n<p>Jared Birchall, managing director of Musk\u2019s family office and a former Morgan Stanley banker, engaged with Twitter shareholders on Dec. 15, announcing \u201ca follow-on equity offering for common shares at the original price and terms.\u201d The offer was new shares worth $54.20, the same price that Musk paid to shareholders to make the company private.<\/p>\n<p>\u201cOver recent weeks we\u2019ve received numerous inbound requests to invest in Twitter,\u201d Birchall wrote in a note, which was first seen by <a href=\"https:\/\/www.semafor.com\/article\/12\/16\/2022\/elon-musks-team-is-seeking-new-investors-for-twitter\">Semafor<\/a>. \u201cAccordingly, we are pleased to announce a follow-on equity offering for common shares at the original price and terms, targeting a year-end close.\u201d<\/p>\n<p>The note stated that the company had planned to finish the latest fundraising initiative by the end of the year.<\/p>\n<p>Ross Gerber, a prominent Tesla Motors investor and the CEO of Gerber Kawasaki Wealth and Investment Management, acknowledged that he\u2019s considering the proposal, but wants a clear plan.<\/p>\n<p>Gerber has been vocal about wanting Musk to refocus his attention on Tesla, going as far as running for the board of directors (BOD).<\/p>\n<p>\u201cI think it is in the best interest for Tesla shareholders for Elon to be back at Tesla working full time,\u201d he wrote in a\u00a0<a href=\"https:\/\/twitter.com\/GerberKawasaki\/status\/1604191829951320064\">tweet<\/a>. \u201cI hope that he finds a ceo for Twitter in Q1 and he makes the transition out of being Twitter CEO. If elected to the BOD I will work to create a clear timeline.\u201d<\/p>\n<p>Musk <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1604617643973124097\">posted<\/a> a Dec. 18 poll asking the Twitterverse if he should step down as head of Twitter, saying, \u201cI will abide by the results of this poll.\u201d<\/p>\n<p>With more than 17.5 million votes, 57.5 percent voted \u201cYes,\u201d and 42.5 percent voted \u201cNo.\u201d<\/p>\n<p>\u201cI will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software and servers teams,\u201d he wrote in a tweet two days later.<\/p>\n<p>\u201cAs the saying goes, be careful what you wish, as you might get it. No one wants the job who can actually keep Twitter alive. There is no successor.\u201d<\/p>\n<p>Dan Ives, a tech analyst at Wedbush Securities, wrote in a\u00a0<a href=\"https:\/\/twitter.com\/DivesTech\/status\/1604622954821812225\">tweet<\/a> that the poll would be a \u201cbig moment for this Twitter situation.\u201d<\/p>\n<p>\u201cWhile clearly unconventional, the Musk CEO poll is a sign that the noise is growing louder and louder given the spider web of Twitter and Tesla weakness,\u201d Ives said.<\/p>\n<p>Despite some of the sour commentary as of late, investment firm Aliya expects to make up to five times its money on Twitter. The Miami-based company had invested $360 million in Musk\u2019s Twitter takeover and now anticipates that he\u2019ll take advantage of the roughly 229 million daily active users.<\/p>\n<p>\u201cWe believe Twitter will produce a return of 4\u20135 times in just a few years, with comparably limited downside risk,\u201d Aliya CEO Ross Kestin said in a <a href=\"https:\/\/www.reuters.com\/business\/investor-musks-twitter-buyout-expects-make-up-five-times-its-money-2022-12-20\/\">statement<\/a>.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-moran\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/WEB_AndrewMoran.jpeg\" alt=\"Andrew Moran\" \/><\/a>\n\t\t\t\t\t<\/div>\n<p>Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of &#8220;The War on Cash.&#8221;<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Twitter CEO Elon Musk expects the social media platform to be \u201ccash-flow break-even\u201d next year as the company\u2019s cost-cutting and new revenue-generating measures averted a $3 billion shortfall. During a Twitter Spaces discussion on Dec. 21, Musk revealed that the business was headed toward a \u201cnegative cash-flow situation of $3 billion a year\u201d when he &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1784663,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[6962,5458,11354,11355,4249,4250,3816,11356,3819,4253,4719,5734],"class_list":["post-1784660","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-the","tag-bongino","tag-break-even","tag-cash-flow","tag-elon","tag-musk","tag-next","tag-optimistic","tag-report","tag-twitter","tag-will","tag-year"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1784660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1784660"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1784660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1784663"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1784660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1784660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1784660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}