Reports have those juicy kinds of speculation from analysts that X, formerly known as Twitter, might end up bankrupt if the advertiser support it has lost from the world’s major companies continue staying away, given Musk having cursed them out last week, but surely Musk is playing a much bigger game?
The BBC has published an article titled: “Could X go bankrupt under Elon Musk?“.
Given Musk told advertisers, including Disney chief Bob Iger at the NY Times Deal Book summit last week to “Go F… themselves” following their attempt to as Musk put it, blackmail him with money, it’s no surprise to see analysts wonder what happens in advertisers keep leaving and don’t come back.
Musk was accused of being an anti-Semite, even after his trip to Israel last week, and because Premium and Premium+ subscriptions don’t yet generate the tens of billions needed to continue paying the interest and service the loans, which costs a reported US $1.2 billion in interest payments each year.
Still, Musk is well known for playing the long game, and Musk has been actively seeking to expand the ways in which X earns money, but even so, the article from the BBC is worth your time to read, and does raise a legitimate point that X could one day go bankrupt.
Given Musk is meant to represent many billions of dollars in wealth, he could, in theory, afford to save X himself, but we’re still far from that needing to happen, and we’ll continue watching it all with great interest!
You can watch me speak about this and plenty more at the Chris Smith Show, from Wednesday 6 December, 2023 below:
