Linda Yaccarino to Meet with X’s Lenders, Says Platform Should Turn Profit by 2024

Linda Yaccarino, the CEO of X, the platform formerly known as Twitter, is set to meet with seven banks that provided financing for Elon Musk’s acquisition of the platform. Scheduled for October 5, the meeting is being closely watched by industry insiders who remain skeptical about X’s prospects for revival.

It will undoubtedly put the spotlight on Yaccarino’s strategy to breathe new life into X. However, it’s unclear how Yaccarino intends to win back advertisers, particularly given owner Elon Musk’s penchant for stirring up controversy on the platform. 

As one banker from the lenders remarked, “She has to get him out,” highlighting the challenge of attracting ad dollars in such a volatile environment.

X’s lenders have been saddled with approximately $13 billion of debt linked to Musk’s acquisition for nearly a year, resulting in substantial paper losses. 

A tense Yaccarino claimed in an interview at the Code Conference on Wednesday evening that the company’s finances are improving.

“From an operating cash flow perspective, we are just about break-even . . . It looks like in early 2024 we will be turning a profit,” she said.

While she seemed confident in her answers, speaking carefully and taking her time, she flubbed questions on the platform’s metrics and was unsure about the figures for the daily active users (which she later clarified was 245 million). 

She was also visibly uncomfortable as she tried to dodge the topic of the platform’s safety and moderation, especially since Yoel Roth, the platform’s former head of trust and safety, also appeared as a surprise guest at the conference just an hour before. 

Related: Two Safety Executives Leave Twitter Amid Content Moderation Concerns

She also dismissed questions about the plans for the platform’s business model, particularly about moving into an entirely subscription-based model, as well as the topic of Musk’s leadership and her relationship with him.

US revenues are reported to have plummeted by 60% since Musk took the helm, but one source familiar with the matter said in a Financial Times report that the platform is still able to cover its interest cost of $1.5 billion per year.

Related: Surprised? Twitter Blocks Links to Threads While Reports Say Traffic Is Down

Yaccarino remains optimistic. She also recently told the Financial Times that 90% of 2022’s top global spenders had returned, except she did not share crucial details about advertiser spending. 

Related: X (fka Twitter) Warns Brands They Would Lose Checkmarks If They Don’t Advertise

The FT shared that SensorTower data suggests that post-acquisition spending by advertisers may be significantly lower than before.


Information for this story was found via The Verge, the Financial Times, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Elon Musk Prepares to Delete ‘Block’ Feature on Twitter

Elon Musk has once again made headlines with a controversial change to the platform previously...

Friday, August 18, 2023, 12:37:55 PM

Pull That Threads: Is There Censorship Already At Meta’s “Twitter Killer”?

Meta Platforms (NASDAQ: META) chief Mark Zuckerberg has promised users that his new platform, “Threads,”...

Friday, July 7, 2023, 10:11:00 AM

It’s A HoaX: Gmail Isn’t Going Anywhere

“Gmail is here to stay,” Gmail posted on X Thursday evening after fake news about...

Friday, February 23, 2024, 11:14:00 AM

Twitter Is Now Allowing Cannabis Ads in the US — But To What Extent?

As part of its ongoing quest for new revenue streams, Twitter recently updated its advertising...

Wednesday, February 15, 2023, 04:54:50 PM

From $8 Blue Checks To Paywalls: Elon Musk’s Reported Plans For Twitter

After the brouhaha brought about by Elon Musk’s new $8 per month subscription to Twitter’s...

Wednesday, November 9, 2022, 05:12:00 PM