Twitter has lost more than half it’s value since Musk’s $US44 billion ($66 billion) takeover six months ago, according to a leaked memo from the business magnate.
Musk informed his staff that the company was now worth less than $US20 billion. Twitter’s sudden decline is a consequence of the loss of advertising revenue following Musk’s controversial approach to content moderation.
Before the billionaire bought Twitter, slurs against Black Americans on Twitter was an average of 1,282 times a day. Following Musk’s takeover, they jumped to 3,876 times a day. Antisemitic posts increased by 61 per cent in the two weeks following the acquisition. These findings from the Center for Countering Digital Hate and the Anti-Defamation League, highlight Twitter’s transformation under its new CEO.
The tech mogul has also chosen to reinstate the accounts of Kanye West, Donald Trump, and Andrew Tate.
Following the turbulent takeover, advertisers, who provide 90 percent of Twitter’s revenue, fled the platform fearing for brand safety.
A financial services company pulled 1.1 million dollar ad spend from Twitter and told users on Blind, an app that provides an anonymous forum for verified employees: “Replies to our posts with hardcore antisemitism and adult spam remained up for days even when flagged,”
Dr. Carolyn A. Massiah, associate chair for the Department of Marketing and a lecturer in Marketing at UCF College of Business explained the extent of Twitter’s advertiser crisis:
“In the first weeks of January 2023, more than half of the top 1,000 advertisers in September 2022 had chosen to no longer spend on the platform,”
“These include Coca-Cola, Jeep, Unilever, and Wells Fargo,” added Massiah. “Much like Google and Facebook, advertising dollars are responsible for the majority of Twitter’s revenue. When those revenue dollars were disrupted, Twitter began to see a sizable decline in revenue.”
It is unlikely that features such as Twitter Blue, which costs US7$ a month, can compensate for the loss of advertising revenue.
To encourage the subscription, Musk today tweeted: “Starting April 15th, only verified accounts will be eligible to be in For You recommendations. The is the only realistic way to address advanced AI bot swarms taking over. It is otherwise a hopeless losing battle. Voting in polls will require verification for same reason.”
Starting April 15th, only verified accounts will be eligible to be in For You recommendations.
The is the only realistic way to address advanced AI bot swarms taking over. It is otherwise a hopeless losing battle.
Voting in polls will require verification for same reason.
— Elon Musk (@elonmusk) March 27, 2023
