Darren Beattie: Newest Twitter Bans Reveal Rogue Employees Are Still Employed By Elon Musk
Bannons War Room
December 23, 2022
Musk said in an interview recently, paraphrased from Bannon
Twitter is like a burning plane going down at a very high speedsee full quote below
ELON MUSK: Because of the nature of this transaction where this 12 and a half billion dollars of debt and the Fed rate has been going crazy, there’s on the order of a billion and a half-ish of debt servicing that’s required. So we’re talking about like net cash outflow.
If you don’t make any changes of, on the order of like six, six and a half billion next year with revenue probably tracking to three. So. That’s like a negative cash flow situation of $3 billion a year. Not good. Since Twitter has 1 billion in cash. So that’s why I spent the last five weeks cutting costs like crazy.
GEORGE HOTZ: I think we also got to get the advertisers.
ELON MUSK: Yeah. Yeah. All we’re doing is get the advertisers. But like I said, I’ve spoken to a number of the advertisers. Their their requests are not fuzzy or irrational or anything. They’re, like, quite reasonable. They’re like, just show us an ROI why that makes sense. And I’m like, yes, I agree. If I were in that position, I would also want an ROI that makes sense, especially when we’re headed into difficult economic times where these questions are asked a lot more than in prosperous times.
In prosperous times, there is plenty of budget for advertising, and you can you can get away with unclear ROI. But when times are tough, then then the hard questions of return on investment are asked. And when you do not have a clear answer, then advertisers don’t want to advertise because they’re being sane. That that’s the main issue. So this is important.
So now with the changes that we’re making here on massively reducing the burn rate and building subscriber revenue, I now think that Twitter will in fact be okay next year. I think we will be about, hopefully for roughly cash flow breakeven. That’s what I expect for next year. But this won’t be quite, this will be difficult.
But but I think that’s that’s where what will happen is roughly cash flow breakeven as opposed to -3 billion-ish on with 1 billion of cash, which would be there for debt. So that’s the reason for all of my actions, though they may seem sometimes spurious or odd or whatever, it’s because this is not we have an emergency fire drill in our hands.
That’s the reason, not because I am like naturally capricious or at least aspirationally, I’m not naturally capricious. So I, but but if you sort of, if you say you’re looking at it from my standpoint and you’re saying, okay, wow,this company is, is like like basically you’re in a plane that is headed towards the ground at high speed with the engines on fire. And the controls don’t work.
https://www.mediaite.com/news/during-live-interview-elon-musk-says-twitter-is-like-a-burning-plane-going-down-at-high-speed/