Linda Yaccarino, the Chief Executive Officer of X, formerly known as Twitter, held her inaugural meeting with the company’s banks on Thursday, outlining strategies to revitalize the social media platform’s business. The meeting aimed to update the banks that had extended $13 billion in financing for Elon Musk’s acquisition of the platform.
While the specifics of Yaccarino’s plans were not fully disclosed, insiders have provided some insights into the current state of X’s business. According to a source familiar with the matter, X’s revenue experienced high-single-digit percentage growth during the third quarter in comparison to the second quarter. However, the exact revenue figures, encompassing earnings from advertising, subscriptions, and data licensing, remain undisclosed.
X has chosen not to comment on the matter.
Since Musk’s acquisition of the platform in October 2022, the tech entrepreneur has actively explored various avenues to boost revenue. Initiatives have included raising the cost of the platform’s data access tool and introducing exclusive features available only to paid subscribers.
During the meeting with X’s lenders, Yaccarino revealed plans to experiment with three tiers of the subscription service, with pricing based on the number of ads shown to users. As of now, X’s existing paid service is priced at $8 per month.
However, X’s core digital advertising sector has encountered challenges, partly attributed to a series of platform changes and Musk’s polarizing image. Notably, the company’s U.S. ad revenue has seen year-over-year declines every month since Musk’s acquisition, as reported by ad analytics firm Guideline, which tracks ad spending data from major ad agencies.
Simultaneously, on Thursday, the U.S. Securities and Exchange Commission (SEC) took legal action against Musk, seeking his testimony as part of an investigation into his takeover of the social media platform.
Yaccarino also discussed key revenue drivers for X in the meeting, including a renewed focus on political ads. The company had previously enforced a global ban on such advertisements pre-acquisition, but this ban has since been lifted. This decision comes as the advertising industry anticipates increased spending in the lead-up to several major global elections next year, including the U.S. presidential election.
Additionally, X intends to concentrate on serving smaller and medium-sized advertisers, identified by Yaccarino as a significant growth opportunity. This strategic shift aligns with the company’s efforts to navigate the evolving landscape of digital advertising.
Yaccarino’s engagement with X’s banks reflects the ongoing transformation and challenges facing the platform as it seeks to adapt and grow under new leadership. The success of these initiatives will be closely watched by industry observers, given the platform’s significant role in the world of social media and online communication.