Elon Musk Explores Raising $3 Billion To Pay Off Twitter Debt: Report

Last Updated: January 26, 2023, 08:36 AM IST

(Reuters) – Elon Musk’s team has been exploring using as much as $3 billion in potential new fundraising to help repay some of the $13 billion in debt tacked onto Twitter Inc for his buyout of the company, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

In related news, advertising spend on Twitter Inc dropped by 71% in December, data from an advertising research firm showed, as top advertisers slashed their spending on the social-media platform after Elon Musk’s takeover.

The recent data by Standard Media Index comes (SMI) as Twitter is moving to reverse the advertiser exodus. It has introduced a slew of initiatives to win back advertisers, offering some free ads, lifting a ban on political advertising and allowing companies greater control over the positioning of their ads.

According to the SMI data, ad spending on Twitter in November fell 55% from last year despite these months traditionally being a time of higher ad spending as brands promote their products during the holiday season.

Twitter did not immediately respond to a Reuters request for comment.

Most of the companies had stopped spending in November, estimates by another research firm Pathmatics showed, the same month that Musk restored suspended accounts and released a paid account verification that resulted in scammers impersonating corporations.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)