• About
  • Advertise
  • Careers
  • Contact Us
Thursday, June 26, 2025
  • Login
No Result
View All Result
NEWSLETTER
Tech | Business | Economy
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
    • Mobility
    • Environment
    • Travel
    • StartUPs
      • Chidiverse
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • EventDIARY
    • Editorial
    • Appointment
  • TECHECONOMY TV
  • Apply
  • TBS
  • BusinesSENSE For SMEs
  • Chidiverse
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Home Economy Finance

The Rise and Fall of Twitter

by Justice Godfrey Okamgba
July 21, 2023
in Finance
0
The Rise and Fall of Twitter
UBA
Advertisements

Once a thriving social media platform, Twitter has been grappling with a series of obstacles in recent times. 

The acquisition of Twitter by tech magnate Elon Musk in October 2022 was expected to breathe new life into the struggling company. 

However, instead of experiencing a renaissance, Twitter has faced a decline in advertising revenue and other significant challenges. 

This piece delves into the implications of Musk’s takeover, analyzing the factors contributing to Twitter’s struggles and examining whether these problems emerged before or after Musk assumed control

Dwindling Revenue

Twitter’s most pressing issue revolves around a substantial drop in advertising revenue. Since Musk’s acquisition, the company has witnessed a staggering 50% decrease in advertising earnings. 

Musk himself has acknowledged the negative cash flow and stressed the importance of achieving positive cash flow before focusing on other areas. 

The decline in ad revenue can be attributed to the “extreme pressure” exerted by advertisers in Europe and North America, who have seemingly attempted to push the company towards bankruptcy.

Layoffs

Elon Musk wasted no time implementing cost-cutting measures upon assuming control of Twitter. Approximately half of the company’s 7,500 employees were laid off as part of this strategy. 

While these layoffs were aimed at reducing expenses, they also raised concerns about the platform’s ability to operate effectively with a significantly diminished workforce.

In February 2023, Twitter further exacerbated these concerns by laying off an additional 10% of its remaining staff, further impacting its operational capacity.

Emergence of Thread

Adding to Twitter’s woes is the emergence of competing platforms. Instagram’s introduction of the “Threads app” poses a potential threat to Twitter’s user base. With an estimated 150 million users, Threads leverages its connection to Instagram and Meta’s two billion users, presenting a formidable challenge to Twitter’s market share. 

The migration of users to alternative platforms underscores the urgent need for Twitter to innovate and adapt to retain its audience.

Legal Battle with Meta

Elon Musk’s legal battle with Meta, the parent company of Instagram, has also hampered Twitter’s recovery efforts. 

Musk has threatened to sue Meta over its new rival app, Threads, claiming that Meta has infringed on Twitter’s “intellectual property rights.” Twitter has expressed serious concerns about the alleged misappropriation of its trade secrets and intellectual property. 

However, legal experts suggest that the cloning of social media platforms is a common practice in the industry, making it unlikely that the courts will favor Twitter’s claims.

Downward Valuation

Twitter’s financial performance has also suffered a severe blow since Musk’s acquisition. Initially purchased for $44 billion, Musk recently stated that the company’s value has plummeted to $20 billion. 

Additionally, mutual funds giant Fidelity has valued Twitter at a mere $15 billion. These declining valuations reflect investor apprehensions regarding Twitter’s financial outlook and the effectiveness of Musk’s turnaround efforts.

While much of the focus has been on Twitter’s challenges following Elon Musk’s takeover, industry experts argue that the company was already grappling with difficulties before the acquisition. 

Former executive Meghana Dhar, who has experience with rival platforms Snap and Meta, noted a steady decline in Twitter’s revenue and growth even before Musk’s involvement. This perspective raises questions about the underlying issues within Twitter’s business model and strategy.

Final Notes 

In conclusion, despite Elon Musk’s efforts to revive the platform, Twitter continues to face significant obstacles. 

The decline in advertising revenue, workforce reductions, competition from alternative platforms, and financial challenges have all contributed to Twitter’s current predicament. 

Although Elon Musk’s acquisition has had a notable impact, indications suggest that Twitter was already encountering struggles before his involvement. 

The future of Twitter remains uncertain, requiring innovative strategies and adaptability to regain stability in the highly competitive social media landscape.

Loading

Advertisements
MTN ADS

Author

  • Justice Godfrey Okamgba
    Justice Godfrey Okamgba

    View all posts
0Shares
Tags: MetaMusktechTwitter
Justice Godfrey Okamgba

Justice Godfrey Okamgba

Next Post
Keyboard Mastery: Shortcuts Across Productivity Software

Keyboard Mastery: Shortcuts Across Productivity Software

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recommended

Moni

Moni Announces Plans to Drive Growth for African SMEs Through Loans

2 years ago
Apple, Nvidia Could Join OpenAI Investment Round, Boosting Valuation to $100 Billion

Apple, Nvidia Could Join OpenAI Investment Round, Boosting Valuation to $100 Billion

10 months ago

Popular News

    Connect with us

    • About
    • Advertise
    • Careers
    • Contact Us

    © 2025 TECHECONOMY.

    No Result
    View All Result
    • News
    • Tech
      • DisruptiveTECH
      • ConsumerTech
      • How To
      • TechTAINMENT
    • Business
      • Telecoms
      • Mobility
      • Environment
      • Travel
      • StartUPs
        • Chidiverse
      • TE Insights
      • Security
    • Partners
    • Economy
      • Finance
      • Fintech
      • Digital Assets
      • Personal Finance
      • Insurance
    • Features
      • IndustryINFLUENCERS
      • Guest Writer
      • EventDIARY
      • Editorial
      • Appointment
    • TECHECONOMY TV
    • Apply
    • TBS
    • BusinesSENSE For SMEs

    © 2025 TECHECONOMY.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Translate »
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.