Mark Cuban Gives Elon Musk Advice on Making X Profitable

Mark Cuban and Elon Musk exchanged jibes, and Mark Cuban offered Elon Musk unsolicited business advice on how to make X (formerly Twitter) profitable. Cuban commented, on September 17th, that suggested, ‘Hey @elonmusk, this could make @X profitable,’ along with a post that revealed a new software patent that he and two co-creators had created. Cuban’s suggestion was to turn off comments on the post.

According to Cuban in the original post, the patented system was created to “deliver ads, of any media type, from social media or any other software with a user profile.”

A screenshot of the patent receipt accompanied his explanation. Cuban explained that the system enables the profile owner or platform to advertise directly through their posts. With Musk’s platform X facing a significant revenue decline since his takeover, Cuban cheekily offered his invention as a potential solution before quipping.

“If you want to add revenue to your platform, just ask!” Cuban noted that the system could be applied to websites, marketplaces, and social media sites, making it a fitting idea for X’s struggles.

Since Musk acquired Twitter for $44 billion, X has experienced significant financial challenges. Fast Company reported that revenue plummeted by 54 percent in 2023. Before the rebrand to X, Twitter relied on advertising for 92 percent of its revenue. Still, Musk initially distanced himself from this strategy to generate income through X Premium subscriptions. Tesla’s shift in approach has not prevented X from reporting significant losses, with Mashable citing a $456 million loss in the first quarter of 2023 alone. Despite the difficulties, Linda Yaccarino, the CEO of X, is confident in the platform’s potential profitability by 2024.

Cuban’s suggestion is the latest in a series of playful jabs between the two billionaires. Cuban, who has often commented on Musk’s business moves, has made it clear he’s watching X’s financial performance. In a recent interview with Wired, Cuban expressed his admiration for platforms like X, even going so far as to say he would buy it ‘in a heartbeat’ if he could. Despite this, he acknowledged that Musk would never sell it. He also mentioned his interest in acquiring Fox News, although he admitted that the purchase was beyond his financial reach.

X’s continued profitability concerns may warrant Cuban’s suggestion, even if delivered in jest. Although Musk will not take the advice, the public rivalry between these two business moguls remains.