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Twitter revenue down 40% from a year ago following Elon Musk’s £38bn takeover of the social media giant
Twitter’s daily revenues are 40 percent lower than a year ago as the social media company feels the hangover of Elon Musk’s £38bn takeover.
A senior executive said more than 500 top advertisers have cut spending since the Tesla mogul took over the company in October.
Siddharth Rao, who oversees the engineering of the advertising arm, said there were major concerns about the core business of advertising, which used to be 90 percent of total revenue.
Revenue drop: A senior Twitter executive said more than 500 top advertisers have cut spending since Tesla tycoon Elon Musk (pictured) took over the company in October
Several big names stopped ad campaigns on Twitter last year. Musk has halved his 7,500 employees worldwide and shaken up Twitter.
In November, marketing firm Omnicom, which represents 5,000 companies like Apple, told customers to pause all advertising, claiming promotions posed a “serious risk to brand safety.”
Michael Gartenberg, a technical analyst, said: “Musk’s policies have led to an increase in various types of hate speech and the reinstatement of previously banned accounts.
“This has led more brands to hesitate to be associated with content that many customers find objectionable.”