June 19, 2024 – Since Elon Musk’s acquisition of the X platform, previously known as Twitter, the company has experienced a significant decline in revenue, as the billionaire entrepreneur had anticipated.
According to regulatory documents obtained by Bloomberg, the X platform generated 1.48billioninrevenueduringthefirsthalfof2023,representingadecreaseofapproximately4044 billion.
The documents also revealed that the X platform incurred a loss of $456 million in the first quarter of 2023.
Musk’s relationship with the advertising industry has been strained, and advertising represents a significant source of revenue for the X platform. Last year, Musk publicly used vulgar language to insult advertisers during an event. This incident occurred after several major advertisers, including Disney, IBM, Apple, and Lionsgate, halted their advertising on the platform due to a post by Musk that was accused of being anti-Semitic. There were also reports of advertisements appearing alongside content promoting white supremacy and anti-Semitism, further driving advertisers away from the platform.
The documents obtained by Bloomberg were submitted to state regulators as part of X’s effort to establish a peer-to-peer payment platform similar to Venmo. A notable detail in the documents revealed that despite Musk’s keen interest in cryptocurrencies, the X payments department informed regulators in Maine that they had no plans to support virtual currency transactions.
As a co-founder of PayPal, Musk has outlined a vision to transform the X platform into an “all-in-one app,” where users can build their “entire financial world.” He previously proposed the introduction of high-yield savings accounts on the X platform to encourage users to keep their funds within the platform.
