Twitter runs on ad revenue. Musk intends to change that during a perilous time of mounting debt costs and elusive profits.
, he characterized himself as a “free speech absolutist.” He tried to clarify a bit later on: “By ‘free speech’, I simply mean that which matches the law.”
It is, but Musk seems intent to roll back Twitter to an even earlier era, poised to drop or limit the content-moderating practices the company has increasingly added over the last few years. He’s floated some real doozies since first disclosing his Twitter shareholder on April 4—like, turn Twitter HQ into a homeless shelter—but the one purposing greater free speech is the most perilous proposal, advertising executives say.
OK, to recap: If Musk did nothing to change Twitter, he’d still need to substantially raise profitability to afford the company’s increased debt. But if he makes significant changes to Twitter’s revenue model by allowing more questionable speech there, driving away ad dollars, he will need to replace that lost revenue somehow whilegrowing profit to accommodate the debt.
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