No, Twitter had started making a profit when he bought it. The last year they had a court case which made the year a loss, but the years before were profitable.
You’d expect it – most online companies do, as it makes sense for companies with high fixed costs and low variable costs – to have a growth phase, during which it loses money but aims to grow by being very appealing. Once it’s grown as far as it reasonably can or as money permits, the growth phase ends and the monetization phase begins. Twitter’s growth phase was over. It would never have been expected for Twitter to just lose money forever.
Wouldn’t barely breaking even actually be exceptionally good in the history of twitter? I though it had been burning money from its conception.
No, Twitter had started making a profit when he bought it. The last year they had a court case which made the year a loss, but the years before were profitable.
You’d expect it – most online companies do, as it makes sense for companies with high fixed costs and low variable costs – to have a growth phase, during which it loses money but aims to grow by being very appealing. Once it’s grown as far as it reasonably can or as money permits, the growth phase ends and the monetization phase begins. Twitter’s growth phase was over. It would never have been expected for Twitter to just lose money forever.