Elon Musk Says Twitter Has No Money, Huge Debt Burden

<p>&nbsp;Elon Musk revealed that Twitter has lost almost half of its advertising revenue since it was acquired last October.</p><p><br /></p><p>Responding to a tweet about the proposed recapitalization, he said Twitter's cash flow remains negative due to a drop in advertising revenue and a heavy debt load.</p><p><br /></p><p>In a separate tweet, Musk also said the social media network did not see the gains in ad revenue expected in June, but there was some hope in July.</p><p><br /></p><p>As a result, it can be concluded that the aggressive cost-cutting measures since he took over Twitter were not enough to turn his cash flow back positive.</p><p><br /></p><p><br /></p><p>After laying off thousands of workers and cutting cloud services bills, Musk said the company had cut its non-debt spending to $1.5 billion from a projected $4.5 billion in 2023.</p><p><br /></p><p>Not only that, Twitter also faces an annual interest payment of about $1.5 billion as a result of the debt it took on in the $44 billion deal that took the company private.</p><p><br /></p><p>Last May, Musk appointed Linda Yaccarino as Twitter's new chief executive officer.</p><p><br /></p><p>Yaccarino told investors that the company plans to focus on video sharing, creators and commerce and is in early talks with political and entertainment figures, payment services and news and media publishers.</p>