Even though he’s only owned Twitter for a couple of months now, Elon Musk is already losing money hand over fist on the social media site, with Bloomberg reporting that Musk’s net worth is down a cool $8 billion in the week since he paid $44 billion to purchase a controlling interest.
How to solve the massive hemorrhaging of cash from Twitter? Well, Musk floated the idea of charging $20 a month for those who want “verified” accounts, which are easily identified by the blue check mark you see next to some users, for example on MSNBC’s Twitter account:
The Washington Post reports that Musk is desperate to find ways for his new acquisition to pay for itself.
Musk is scrambling to find ways to shore up Twitter’s business and increase its revenue. Though the company is no longer public, it now has to make huge interest payments every year on the debt Musk accrued by buying it. Musk also pitched his co-investors on the deal by saying he would be able to improve the company’s business rapidly in the years after taking it over.
Right now, Twitter makes most of its money from advertising, and Musk is currently in New York meeting with advertisers to shore up relationships with them, including representatives of the biggest marketing agencies, according to an executive at one of those agencies who spoke on the condition of anonymity. But advertising won’t be enough, Musk has said repeatedly.
But the idea of charging users for verified accounts isn’t sitting well with many, including novelist Stephen King, who was eager to let Musk know that his plan is only going lead to millions dropping Twitter altogether, which could prove catastrophic for Musk’s dreams of making a mint off the site.
King let Musk have it.
Musk tried to counter with a better offer.
Others joined King and noted that since they’re providing the content for Twitter, maybe Musk should be sending them a check every month instead of the other way around.
Even an online poll shows that the vast majority of Twitter users will refuse to fork over a red cent for the right to post on the platform.
Sounds like Elon should have stuck to inheriting money from his daddy and being an insufferable asshole. At least he’s good at those.
