Image Source: CNBC
As the purported takeover of Twitter continues to mount and dominate the internet space, Elon Musk has come out to express his intentions for the microblogging platform when the takeover is completed. In addition to championing free speech regardless of political ideologies and leanings, Musk is also looking to grow Twitter revenue. According to Musk, Twitter is a platform with immense potential, which he will be looking to leverage when he takes over.
According to the New York Times, Elon Musk wants to grow Twitter’s annual earnings to $26.4 billion by 2028, a massive improvement from the current $5 billion Twitter made in revenue last year. Musk made this pronouncement in a pitch deck provided to investors by the world’s richest man.
Research shows that advertising will account for 45 percent of overall revenue under Musk, down from approximately 90 percent in 2020. This will create $12 billion in revenue in 2028, while memberships will bring in another $10 billion. In addition, according to the publication, the CEO of electric vehicle company Tesla wants to raise Twitter’s cash flow to at least $3.2 billion in 2025 and $9.4 billion in 2028.
Last month, Musk agreed to buy Twitter for $44 billion in cash, thus taking over the ownership of the microblogging platform, which has become home to millions of people and world leaders. The takeover, when completed, will leave 100% of Twitter in the hands of the Tesla CEO.
According to a source familiar with the situation, Elon Musk has promised to reinvigorate the firm and ensure an increase in the number of users while prioritizing a crackdown on spambots. Musk is also looking to reduce the moderating level of the social media company to allow more “free speech.” He is anticipated to become Twitter’s interim CEO after the acquisition is completed.
According to the New York Times, Musk anticipates the social media company will bring in roughly $15 million from a payments business in 2023, which will increase to about $1.3 billion by 2028.
It also stated that Musk expects to grow Twitter’s average revenue per user to $30.22 in 2028, up from $24.83 last year. In addition, by 2025, he anticipates Twitter will have 11,072 employees, up from roughly 7,500 currently.
The revenue from Twitter Blue, the company’s premium subscription service established last year, is expected to reach 69 million subscribers by 2025. In a now-deleted post last month, Musk suggested a number of modifications to the social media giant’s Twitter Blue premium subscription program, including lowering its price.
On Thursday, Musk announced a group of high-profile investors, including Oracle co-founder Larry Ellison and Sequoia Capital, who are willing to invest $7.14 billion in his Twitter bid.
Musk has boosted the financial pledge to $27.25 billion, including promises from 19 investors, and has decreased a Morgan Stanley margin loan connected to his Tesla stock to $6.25 billion. He has already secured $13 billion in loan pledges against Twitter shares.
Attempts to reach Musk or any member of his team for comment or corroboration have been unsuccessful.