Neon Sign 50 Million Won, '@' Plants 18 Million Won
Twitter Loses 500 Advertisers After Musk Acquisition
[Asia Economy Reporter Kim Hyunjung] The iconic bluebird sculpture symbolizing the social networking service (SNS) Twitter was sold at auction for $100,000 (approximately 123.5 million KRW).
The left shows the Twitter Bluebird sculpture sold for $100,000, and the right shows the large plant planter sold for $15,000. [Photo by Yonhap News]
According to foreign media including AFP on the 19th (local time), Twitter put up 631 office items from its San Francisco headquarters for auction held for 27 hours from 7 a.m. on the 17th to 10 a.m. on the 18th. The auction, hosted by Heritage Global Partners (HGP), featured symbolic items representing Twitter’s identity such as the bluebird sculpture, a bluebird-shaped LED neon sign, and a large planter shaped like the '@' symbol, as well as various office furniture including chairs, tables, coffee machines, and soundproof booths.
More than 20,000 bidders participated in the online auction. The 3-meter LED neon sign in the shape of the bluebird logo sold for $40,000 (about 50 million KRW), and the large planter measuring 190 cm by 190 cm in the shape of the '@' symbol sold for $15,000 (about 18 million KRW). It was reported that none of the items auctioned, including whiteboards and quarantine masks, sold for less than $300 (about 370,000 KRW).
Although the exact amount Twitter earned from the auction has not yet been disclosed, Ross Dove, CEO of Heritage Global, the parent company of HGP which managed the auction, said, "Twitter is expected to generate about $1.5 million (approximately 1.853 billion KRW) in revenue from this auction." He added, "This amount is a drop in the bucket compared to Musk’s $44 billion (about 55.44 trillion KRW) acquisition cost of Twitter," but also said, "Still, auctioning off surplus equipment is good corporate governance for any company."
Since being acquired by Tesla CEO Elon Musk at the end of October last year, Twitter has been facing the dual hardships of severe restructuring and worsening financial conditions. Musk carried out a large-scale restructuring that cut half of Twitter’s 7,500 employees, downsized the office, and terminated contracts with cleaning service companies, implementing drastic austerity measures. Despite these efforts, management difficulties have been worsening daily due to advertisers leaving.
Recently, the U.S. IT media outlet The Information reported, citing sources, that more than 500 advertisers left after Musk acquired Twitter, and daily advertising revenue has decreased by 40% compared to a year ago. Advertisers stopped advertising on Twitter to manage the company’s image amid various controversies such as changes in content management policies and the introduction of paid verification services. The economic media Forbes predicted that Twitter’s financial difficulties will deepen further as advertising, which accounts for 90% of Twitter’s revenue, faces setbacks.
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