Elon Musk’s Purchase of Twitter and its Financial Implications

Abstract

Elon Musk's acquisition of Twitter has made its loud debut, but ever since the acquisition, Musk appears to have only reported bad news about the company, and at one point he even hinted at bankruptcy. Through examining different sources such as current literature, news reports, and Musk's tweets, this study investigates the implications of Musk's changes to the company following his acquisition and how they may have contributed to Twitter's financial problems. It was discovered that Musk's acquisition was accompanied by a large debt as well as a number of bills that he has yet to pay, which is expected to cause backlash if left unchecked. The primary cause of the problem was identified as a mass exodus of advertisers, which led to a plunge in the company's main revenue source. This is a result of the loosening of content moderation and the new Twitter Blue, which made the platform more disorderly and unappealing to advertisers. This study aims to clear up some confusion around the reasons behind Twitter's post-acquisition financial struggles and provide further insights on how the company can recover its profitability.