twitter

Twitter is reportedly considering selling user names in order to increase its revenues. Troubles for the microblogging site have only compounded ever since Elon Musk acquired it in October for $44 billion and took it private.

The New York Times reported that since December Twitter has held internal discussions about selling user names. Last year, Telegram also said that it would auction some of the user names.

Meanwhile, it is still uncertain that Twitter would move ahead with the plan to sell user names. Also, it is not clear how many usernames it actually puts on the block, if at all it decides to sell the handles.

However, Musk has given some hints and last month tweeted that Twitter would free up 1.5 billion user names. Musk has been trying to diversify Twitter’s revenues and end the over-reliance on ad revenues. He is also contemplating allowing political ads on the platform.

Notably, the company also started charging for the verified blue tick. Musk plans to make Twitter an “everything app.” While filing to acquire Twitter, Musk said that he believes the company would not be able to reach its true potential as a public company.

He plans to turn around the social media company whose growth has sagged over the last couple of years. It has not even been three months since Musk took over the company and it has been chaos, to say the least.

Twitter Considers Selling User Names to Increase Revenues

Even if Twitter decides to sell user names, the company might not be able to increase its revenues meaningfully. The company had 238 million monetizable users in mid-2022 according to its last report. Only some of the highly sought-after user names might have a monetary value. There is anyways a black market for Twitter user names.

Meanwhile, many had expressed concerns when in December Musk said that Twitter would delete the 1.5 billion inactive accounts that had not been used for years. Many fear that accounts of deceased persons which exist to memorialize them might also be deleted.

All said, while Musk has been taking several measures to increase the revenue opportunity for Twitter, it remains to be seen how effective they are. What we know is that the company is facing strong headwinds in its core ad business as many advertisers have either totally pulled back or cut spending on the platform.

Musk Has Taken Several Decisions to Cut Costs at Twitter

Musk had previously said that Twitter is losing $4 million daily. Among the first things he did after acquiring the company was to fire nearly half of its workforce. He also asked the remaining employees to work “hardcore.”

Reports suggest that Twitter has lost nearly three-fourths of its workforce since Musk took over. He also fired many contractors unannounced. Many former employees have sued the company over the layoffs.

Twitter also did not pay rent for some of its offices and some have sued the company for non-payment of dues. It has also auctioned several items in what looks like an attempt to raise cash. Reportedly, several Twitter employees carried their own toilet papers to the office after the company fired janitors.

Social Media Companies Have Resorted to Layoffs as Growth Sags

Meanwhile, there has been a flurry of layoffs in the social media space. Parler has also reportedly laid off most of its staff and is left with only a handful of staff.

Meta Platforms also laid off 11,000 employees last year which was 13% of its global workforce. Snap too resorted to layoffs. Global ad spending has been tepid amid the economic slowdown which is hurting the revenues of social media companies.

Donald Trump’s Truth Social is also not growing as fast as the former president anticipated. Truth Social is a part of Trump Media & Technology Group which has announced a merger with Digital World Acquisition (NYSE: DWAC). Despite all the noise DWAC stock trades above the SPAC IPO price, a rarity in current markets. There is a guide on how to buy DWAC stock.

Overall, Twitter now seems in a bigger mess than it was before Musk took over. From advertisers pulling back to non-payment of dues, troubles have only increased for the social media company since Musk acquired it and took it private.

Selling user names might not be the fix that could turn around the company as it continues to battle multiple headwinds.

Related stock news and analysis

Wall Street Memes (WSM) - Newest Meme Coin

Our Rating

Wall Street Memes
  • Community of 1 Million Followers
  • Experienced NFT Project Founders
  • Listed On OKX
  • Staking Rewards
Wall Street Memes