Major banks are trying to offload portions of the massive $13 billion debt package that helped Musk’s acquisition of Twitter (now known as X), according to a recent Wall Street Journal report.
The platform’s financial health has been in jeopardy ever since Musk’s takeover, with the billionaire repeatedly warning of a dire revenue situation. These concerns were further fueled in a recently leaked internal email to X employees, independently verified by The Verge.
In the email, while Musk celebrated the platform’s influence in “shaping national conversations and outcomes,” he simultaneously painted a stark financial picture, acknowledging stagnant user growth, underwhelming revenue performance, and a business that is barely breaking even.
Despite Musk’s optimistic predictions made nearly two years ago about X achieving cash-flow positivity “within months,” the social media platform continues to grapple with substantial financial obligations, including more than $1 billion in annual interest payments on acquisition loans.
While Musk has expanded the platform’s capabilities with additions such as job listings and a dedicated video section, his grand vision of X becoming a comprehensive financial services platform by the close of 2024 remains largely unrealized.
The platform has instead evolved primarily into a testing ground for Musk’s artificial intelligence initiatives, as evidenced by recent developments. This shift in focus appears to diverge significantly from his earlier promises of creating a service capable of managing “someone’s entire financial life,” a goal that shows little sign of materializing.
