Elon Musk finalized his takeover of Twitter on October 27, 2022.
This was also one of the most significant events in the history of the platform, as its name changed from Twitter to X.
Musk began buying shares of Twitter in January 2022, and by April he became the company's largest shareholder after spending $43 billion to buy about 10% of the company.
However, this $43 billion investment may not have gone as planned. This is because according to a recently leaked internal memo, the total value of Twitter has plummeted so far, slashing Musk's capital by about half.
Several changes were introduced to the social media platform after Musk's takeover.
These changes included changing the name from Twitter into X, dumping the iconic Twitter logo for a generic "X", and slashing the workforce by about 80% (after promising not to).
Furthermore, the billionaire CEO also introduced a limit to how many tweets users could read per day, as well as paid verification tags.
As a result, these moves have not only alienated many of its loyal users but also discouraged advertisers from spending on the platform.
According to a recent report from Bloomberg, X has lost at least half of its advertising revenue, which was its main source of income before Musk's takeover.
Bloomberg's report also shows that this decline in revenue has also made it difficult for X to service its massive debt, which amounts to around $13 billion.
The company reportedly owes $1.2 billion in interest payments on its debt.
In all, Bloomberg states that restricted stock units awarded to company employees were valued at $45 per share.
This puts the company's value at approximately $19 billion, which is less than half of the $44 billion that Musk paid for the business on October 27, 2022.
It isn't all bad though.
Despite the challenges, Musk has also introduced some new features and plans for X that have been well-received by users.
One of these features is the revenue-sharing program for creators. With this feature, users can earn money from their posts based on how much engagement they get.
At the same time, Musk also announced that posts that are corrected by the Community Notes feature, which allows users to flag and correct misinformation, would be ineligible for revenue share.
So far, this has been received well by users and has been seen as an attempt to promote accurate and quality content over sensationalism and false facts.
Musk has also hinted at integrating crypto (likely Dogecoin) into X in some way in the future, although he has not given any details on how or when this would happen.
X's outlook remains uncertain as it faces multiple challenges.
One of these is how the company's valuation has dropped to $19 billion. Bloomberg's report also reportedly shows that X's user base has shrunk by 25% since Musk's acquisition, from 200 million monthly active users to about $150 million.
This comes in, despite Musk's efforts to offer premium subscriptions (at $5 a month) and provide access to exclusive features and content.
So far, less than 1% of X's users have opted for a premium subscription, generating less than $120 million in annual revenue for the social platform.
Overall, X's future will depend largely on how Musk manages to balance his innovation with the expectations of the public.
Whether he can turn X into a profitable and sustainable business remains to be seen.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.