A review of internal documents by the New York Times shows that the company previously known as Twitter–purchased by Elon Musk just over a year ago when he killed one of the most recognizable brands on the internet–could lose as much as $75 million in advertising revenue in the final quarter 2023, largely due to major advertisers abandoning the platform because of its catering to hate groups and Musk’s endorsements of white nationalist and neo-Nazi posts.
Twitter (intentionally dead-named) reported $1.57 billion in the fourth quarter of 2022, before Musk took over the company in a $44 billion purchase. The documents reviewed by the Times shows ad contract placements by companies like Airbnb, Amazon, Coca-Cola and Microsoft being suspended, with an initial estimate showing a loss of $11 million, but a follow-up report developed after Musk’s November 15th report endorsing a neo-Nazi view, more than 100 brands puts holds on their advertising agreements. In reaction to that, internal documents show Twitter executives calculating the losses causes by Musk would reach $75 million in the fourth quarter, traditionally one of the heavy revenue generating periods for the company.