Elon Musk often uses bankruptcy warnings to motivate his employees, as he did at Tesla and SpaceX. But now, advertising on X's social media has fallen sharply, and attempts to create new revenue streams have failed, raising concerns about future bankruptcy.
Elon Musk's X social network may go bankrupt — analysts predict
The Financial Times (FT) predicts in its forecasts for 2024 that Elon Musk's social network X (formerly Twitter) may file for bankruptcy this year.
This is stated in an FT article.
Will Company X go bankrupt? Yes. Elon Musk often uses bankruptcy warnings to motivate his employees: he did it at Tesla and SpaceX. But this time, when advertising in X fallen sharply and attempts to create new sources of income failed, there is a high probability that this will happen, the forecast says.
After his recent emotional statements to advertisers, Musk may be foolhardy enough to believe that he can take the company through bankruptcy and still remain on top.
Musk's fight for control of X in bankruptcy would be a fascinating continuation of the drama-filled Twitter acquisition process, the FT writes.
Former Twitter earned times less money from advertising
Social media X (formerly Twitter) earned approximately $2.5 billion in advertising revenue in 2023, which is significantly less than in previous years.
A report by Media Matters for America said that Platform X ran ads for big brands such as Apple alongside anti-Semitic content such as memes depicting Nazism as a spiritual awakening and quotes from Adolf Hitler presented in an inspirational style.
After that, it became known that a number of companies, including Apple, Disney, Comcast, Lionsgate, and Paramount Global, would stop buying ads on the X platform.
Linda Jaccarino, the X company's CEO, has decided to resign despite pressure from advertisers as major brands freeze advertising spending over concerns about its owner, Elon Musk, and anti-Semitic content.
Social network X sued the media watchdog group Media Matters, which found that the social network had posted advertising posts alongside posts praising Nazism.
Billionaire Elon Musk, owner of the social network X, used profanity to criticise brands that pulled their ads from the platform after Musk's controversial post in which he supported an anti-Semitic conspiracy theory.
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