Re:Twitter has officially changed its logo to ‘X’
by stetrain on Monday July 24, 2023 @12:35PM
(#36850651)
> It's not like Elon could make that much worse.
It can absolutely get worse than running roughly break-even. If you have $4b in revenue and $4b in operating costs, and your lose half your revenue, you now have a hole that gets $2b deeper every year.
On top of that, the buyout added a $13b loan which has an annual minimum cost of $1b.
So he needs to increase profitability by a quarter of their previous annual revenue just to get back to where Twitter was pre-buyout.
It can absolutely get worse than running roughly break-even. If you have $4b in revenue and $4b in operating costs, and your lose half your revenue, you now have a hole that gets $2b deeper every year.
On top of that, the buyout added a $13b loan which has an annual minimum cost of $1b.
So he needs to increase profitability by a quarter of their previous annual revenue just to get back to where Twitter was pre-buyout.