Elon Musk aims to boost Twitter’s annual revenue to $26.4 billion by 2028, up from $5 billion last yearThe New York Times reported Friday, citing a speech delivered by the world’s richest.
Advertising will drop to 45% of total revenue under Musk, up from 90% in 2020, generating $12 billion in revenue in 2028, while subscriptions are expected to bring in another $0 billion, according to the report.
The head of electric vehicle maker Tesla also aims to boost Twitter’s cash flow to $3.2 billion by 2025 and $9.4 billion by 2028, the newspaper reported, citing the presentation.
Musk closed a deal last month to buy Twitter for $44 billion in cash, in a move that will shift control of the social media platform populated by millions of users and global leaders to the Tesla boss.
The billionaire promised to reinvigorate the company and expand the number of users by cracking down on spam bots and reducing the amount of moderation to facilitate greater “freedom of expression.”
Twitter is not the most successful social network in terms of economic benefit. AFP Photo
After the deal closes, it is expected that Musk becomes temporary CEO of Twittera person familiar with the matter told Reuters on Thursday.
Among his other goals, Musk expects the social media company to generate $15 million from a payments business in 2023 that will grow to around $1.3 billion by 2028, according to the document cited by the NYT.
Musk anticipates that he can increase Twitter’s average revenue per user to 30.22 in 2028 from 24.83 last year, he added. He also expects Twitter to have 11,072 employees by 2025, up from 7,500.
Revenue from Twitter Blue, the company’s premium subscription service launched last year, is expected to have 69 million users by 2025, the NYT reported.
Musk, in a now-deleted tweet last month, suggested a number of changes to the service. Twitter Blue premium subscription from the social media giant, including lowering its price.
Thursday, Musk listed a group of high-profile investors who are set to provide $7.14 billion in funding for their Twitter offering, including Oracle co-founder Larry Ellison and Sequoia Capital.
Musk increased the funding commitment to $27.25 billion, which includes commitments from 19 investors, and has reduced a Morgan Stanley margin loan tied to his Tesla shares to $6.25 billion. He has already secured $13 billion in loan commitments against Twitter stock.
Musk could not be reached for comment. Twitter did not immediately respond to a Reuters request for comment.
More shareholders support Musk
Those who put money for Musk. Reuters photo
Meanwhile, this Thursday Musk secured a $7 billion backing for his takeover. It was from a series of investors, including some pesos Silicon Valley heavyweights like Larry Ellison, co-founder of Oracle.
Other investors are Sequoia Capital Fund, with a commitment of 800 million dollars, and VyCapital, with 700 million, according to a document filed with the Securities and Exchange Commission of the United States (SEC, for its acronym in English). But the largest contribution, of 1,000 million dollars, is that of Ellison, a member of the Tesla board of directors.
Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud has pledged $35 million in Twitter stock to support Musk, according to the document.
In earlier filings with the regulatory authority, Musk disclosed that he has sold $8.5 billion worth of Tesla stock to finance the purchase. Later, he tweeted that he does not plan to sell any more shares of the company, which means that it needs external commitments to close the purchase of 44,000 million dollars.
Due to the new funding disclosed to the SEC on Thursday, Musk will cut the $12.5 billion in margin loans he was leaning on by half.6,250 million dollars. The transaction now has $27.25 billion in cash and stock, compared with $21 billion previously.
Thursday’s document says Musk is in talks with other parties, including former Twitter CEO Jack Dorsey, the company’s second-largest individual shareholder after Musk.
With information from Reuters