As Twitter undergoes a rebranding to become X, the news of delayed payments comes as no surprise, given its recent history. The company reportedly faces difficulty in fulfilling some of its promised payments on time.
(Photo : CHRIS DELMAS/AFP via Getty Images)
This photo illustration shows the X logo (formerly Twitter) on a smartphone screen in Los Angeles, California, on July 31, 2023.
X Is Facing Delay in Promised Payments
Due to the widespread popularity of its "Ads Revenue Sharing" program, Twitter is facing delays in fulfilling certain promised payments.
X Support account has acknowledged the issue and expressed the need for additional time to carefully review all aspects of the next payout. The company said its priority is to ensure timely compensation for all eligible accounts as soon as possible.
The Verge reported that the overwhelming number of people signing up for revenue sharing had surpassed Twitter's expectations. Initially, payments were expected to take place during the week of July 31.
However, due to the unexpectedly high demand, the company requires additional time to review all necessary details for the upcoming payout thoroughly.
Receiving such a message is far from ideal, especially for a program that claims to be "part of our effort to help people earn a living directly on X."
This is a crucial component of X owner Elon Musk's ambitious vision for an app that encompasses banking, stock trading, and other critical financial functionalities.
Twitter Sending Out First Round of Payments
In February, Elon Musk unveiled the revenue-sharing plan, and recently, the company initiated the first round of payments to eligible accounts.
To qualify, accounts need to have paid verification via Twitter Blue or be associated with Verified organizations, garnering at least 15 million "organic" impressions within the last three months, and have a minimum of 500 followers.
After successfully processing the first round of payments to eligible accounts, Search Engine Journal reported that Twitter significantly broadened the program's scope, thus allowing more individuals to participate.
By expanding the program, Twitter aims to accommodate a larger pool of users who meet the specific criteria for eligibility.
Also Read: AFP Takes Legal Action Against Elon Musk's X Over Copyright Dispute in France
Not Surprising News
Since Elon Musk's takeover, the news of delayed payments is nothing new to individuals and organizations associated with X, previously known as Twitter.
That includes landlords of buildings utilized by Twitter in San Francisco and London and former Twitter Africa employees who claim to have been "ghosted" and denied their promised severance payments.
Furthermore, several former employees also filed a lawsuit against the company in May, alleging that the new leadership under Musk deliberately and repeatedly expressed intentions to breach contracts, disregard legal obligations, and leave unpaid rent, vendors, and severance.
In February, Wall Street Journal reported on nine lawsuits amounting to $14 million in unpaid bills, indicating financial challenges faced by Twitter at that time.
In July, Musk took to Twitter to address the financial situation of Twitter. He disclosed that the company was still experiencing negative cash flow, primarily due to a significant 50% decline in advertising revenue and a "heavy debt load."
Related Article: X Requires $1,000 Monthly Ad Spend to Avoid Losing Verification Status
