thatVisitingHasher t1_j73d5py wrote
Reply to comment by ngwoo in Some popular accounts likely to disappear from Twitter as Elon Musk ends free access to API by printial
They’ve been running negative for years now. They need to monetize anything they can.
CrotchetAndVomit t1_j73llwo wrote
That's the thing though. They didn't before this. But he leveraged everything he could do hard that his creditors are likely forcing the hand. Before Elon Twitter was a Venture Capital black hole. That's not the case anymore. This new emperor has no clothes and the banks and oligarchs want their cut of the palace next.
thatVisitingHasher t1_j73mzgo wrote
It was running negative before Elon. They’ve been using Investor dollars to keep the company growing.
CrotchetAndVomit t1_j73ne54 wrote
Yes. I know. Like I said, VC Black hole. My point was that with the shit Elon is pulling there, HIS investors are calling in their bets. That wasn't an issue for Twitter pre Musk. Twitter had made a business running at a loss and growing for well over a decade. Elon messed that all up because people hurt his feelings on the internet
thatVisitingHasher t1_j73o59g wrote
Does he have investors right now? He turned it into a private company. Everyone got paid out when he bought the company. I think he’s using his own bank account to fund the business. There are no investors to chase away.
We should probably look at these tech companies that are growing with a negative balance sheet. That shouldn’t happen.
NULLizm t1_j73oz7q wrote
You suggesting private companies don't have investors?
Surprised you didn't see all the memes making fun of Musk for being pro 'free speech' yet have investors (namely the Saudis) who are famously not pro free speech.
CrotchetAndVomit t1_j73q7jy wrote
Oh course he has investors. While he is the majority stake holder he didn't buy Twitter with his pocket change. He has loans from several banks and a hand full of Saudis at a minimum. All of which likely have SUBSTANTIAL interest rates given that it's a loan for acquisition of a loss leading company
(Source from Routers with some incomplete numbers: https://www.reuters.com/markets/us/who-is-financing-elon-musks-44-billion-deal-buy-twitter-2022-10-07/ )
He offered severance yes but that's not the point and irrelevant to this conversation
him using his own persona accounts to finance his shit show at this point that's on him and because he fucked up by coming in way too hot and torching any good will he might have had from outside investment. You can track how he typically finances day to day operations by looking at any of his other companies. They are all run similarly at the macro level.
Plenty of tech companies run at a loss and grow for substantial periods of time. It's not in and of itself a cancerous place to be as a company when your product will take time to get to a place where it is marketable. Those companies often being an IP to a functional state and then sell it or are absorbed into other much larger companies like Google/Facebook/Amazon. So much so that it's become a trope on TV with shows like Silicon Valley.
Infamous_Yogurt2858 t1_j73yq80 wrote
He may not have investors in the exact sense a public company does, but he absolutely has investors (or more properly creditors) who helped him finance the purchase and they want their cut.
[deleted] t1_j753zg9 wrote
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Infamous_Yogurt2858 t1_j73yg5a wrote
True, but Musk's changes have been digging the hole a lot deeper a lot faster.
unresolved_m t1_j74l0vo wrote
I hope his Twitter account will get hacked.
m0nk_3y_gw t1_j751cy9 wrote
They made a profit in 2018.
Their slacker CEO Jack left recently and they were probably turning things around.
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