“User growth is stagnant, revenue remains unconvincing.” Musk wrote a letter to employees of the social network X
The billionaire spoke about the difficulties the platform faced.
The billionaire spoke about the difficulties the platform faced.
Billionaire Elon Musk wrote a letter to employees of his own X network, in which he spoke about the company's problems, The Wall Street Journal reports .
“Our user growth is stagnant, revenues remain unconvincing, and we are barely breaking even,” the entrepreneur noted in the letter.
Despite these financial struggles, Musk highlighted X’s influence, saying the platform has played a significant role in “shaping national conversations and outcomes” in recent months. He also noted that rival platforms are beginning to adopt X’s approach to “free speech and unbiased truth.” He likely refers to the moderation changes at Meta that Mark Zuckerberg recently implemented.
In addition, financial pressure is mounting on X. Banks including Morgan Stanley, Barclays and Bank of America are working to sell some of the $13 billion in debt tied to Musk’s acquisition of the platform in 2022 for $44 billion. To attract outside investors, banks need to convince them of X’s long-term profitability. But doing so is becoming more difficult given the platform’s current financial health.
Some financial experts are calling the X acquisition one of the worst mergers with financing since the 2008 financial crisis, as lenders have still not been able to recoup their investments.
To counter the exodus of advertisers, X filed a lawsuit accusing companies like Unilever and Mars of violating U.S. antitrust laws by halting advertising on the platform. While some advertisers have returned, the platform continues to lose users.
Recall that in September 2024, it became known that the value of X decreased by 79% after Musk's purchase. The company was then valued at less than a quarter of the purchase price of $44 billion.
At the same time, X released its first full transparency report since Musk’s acquisition. The report shows that in the first half of 2024, the number of accounts suspended more than tripled since the company last shared data in 2021.
The price of X decreased by 79% after Musk bought it
The price of X decreased by 79% after Musk bought it
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