Elon Musk’s company, X Corp., which used to be Twitter, has some positive updates. Advertisers, crucial for social media, are coming back, but they’re spending less money than before.
CEO Linda Yaccarino says about 90% of their main advertisers are back, up from 75% in June. However, they’re not spending as much as they used to. Despite this, Yaccarino is hopeful about the company’s growth. She mentions that their earnings are increasing, especially from advertising, data services, and new subscription offers. After paying off some debts, X Corp. is making a profit, and this is expected to continue into 2024.
But it hasn’t been smooth sailing. Musk’s purchase of Twitter put the company in debt by $13 billion. Before this, Twitter was earning about $5 billion a year, mostly from ads. Now, X Corp. needs to earn that money back and also manage big yearly interest payments.
After Musk’s takeover, the company’s value dropped. Some banks even tried to sell their debt at a loss. At one point, the company was worth only a third of its buying price.
However, X Corp. is making changes. Since 2022, they’ve introduced new subscription offers, reduced staff by 75%, and stopped some services. Musk has plans to make X Corp. a one-stop app for shopping, payments, and social networking.
Yaccarino, with her experience from NBCUniversal Media, is helping bring in big names to the platform. She’s working on getting more celebrities and promoting more online shopping on the site. A recent partnership with Paris Hilton and 11:11 Media shows the company’s new focus on business.
To sum it up, even with some challenges, X Corp. is looking forward and making plans to grow and innovate.