Could X go bankrupt under Elon Musk?

Elon Musk's recent offensive remarks towards advertisers boycotting X, formerly known as Twitter, has left experts perplexed. If the exodus of advertisers continues and they don't return, can X sustain itself?

In April, I had an interview with Musk, the first of many tumultuous discussions about his acquisition of X. He made a comment that, in retrospect, was quite revealing, but it went unnoticed at the time. Discussing advertising, he stated: 'If Disney feels comfortable advertising children's movies [on Twitter], and Apple feels comfortable advertising iPhones, those are good indicators that Twitter is a good place to advertise. ' However, seven months later, Disney and Apple have ceased advertising on X, and Musk is telling the departed companies to 'Go away.

The companies halted their advertisements following an investigation by a US organization, Media Matters for America, which highlighted ads appearing alongside pro-Nazi posts. X vehemently disputed the report, questioning its research methods, and initiated a lawsuit against the organization. In a heated interview on Wednesday, Musk also mentioned the term 'bankruptcy,' indicating the severe impact the ad boycott is having on the company's financial health. For a company he purchased for $44bn (£35bn) last year, bankruptcy might seem inconceivable. But it is a possibility. To comprehend why, one must examine how dependent X is on advertising revenue and why advertisers are not returning.