Elon Musk is aiming to increase Twitter’s annual revenue to $26.4 billion by 2028, up from $5 billion last year, the New York Times reported on Friday, citing a pitch deck presented by the world’s richest man to investors.
Advertising will fall to 45% of total revenue under Musk, down from about 90% in 2020, generating $12 billion in revenue in 2028, while subscriptions are expected to pull in another $10 billion, according to the report.
The head of electric-vehicle maker Tesla Inc also aims to increase Twitter’s cash flow to $3.2 billion in 2025 and $9.4 billion in 2028, the newspaper reported, citing the presentation for details.
Elon Musk plans to quintuple Twitter’s revenue to $26.4 billion by 2028 In a pitch deck Musk claimed he would increase Twitter’s annual revenue to $26.4 billion by 2028, up from $5 billion last year
Musk clinched 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 Inc chief.
The billionaire has promised to revitalize the company and expand the number of users by cracking down on spam bots and reducing the amount of moderation to facilitate more ‘free speech’.
After the closure of the deal, Musk is expected to become Twitter’s temporary CEO it was revealed on Thursday.
He’s also likely to fire many of the firm’s woke staff. Workers have been told the transfer of ownership will last around six months, after which Musk is likely to wield the ax.
Among his other goals, Musk expects the social media company to bring in $15 million from a payments business in 2023 that will grow to about $1.3 billion by 2028, the NYT cited the document as saying.
Musk also said he’d cut Twitter’s reliance on ads to less than 50% percent of revenue
Musk anticipates he can increase Twitter’s average revenue per user to $30.22 in 2028 from $24.83 last year, it added.
He also expects Twitter to have 11,072 employees by 2025, up from around 7,500.
Revenue from Twitter Blue, the company’s premium subscription service launched last year, is expected to have 69 million users by 2025..
Musk, in a now deleted tweet last month, suggested a raft of changes to the social media giant’s Twitter Blue premium subscription service, including slashing its price.
On Thursday, Musk listed a group of high-profile investors who are ready to provide funding of $7.14 billion for his Twitter bid, including Oracle co-founder Larry Ellison and Sequoia Capital.
Musk has increased the financing commitment to $27.25 billion, which includes commitments from 19 investors, and reduced a margin loan from Morgan Stanley tied to his Tesla stock to $6.25 billion.
He has already secured commitments for $13 billion in loans against Twitter shares.
Twitter Blue, launched in June 2021, is Twitter’s first subscription service and offers ‘exclusive access to premium features’ on a monthly subscription basis
Musk could not be reached for comment. Twitter also did not immediately respond to a request for comment.
Musk has vowed to let everyone say whatever they want on Twitter after his takeover of the social media giant.
He is said to favor temporary ‘timeouts’ for users who break the new rules, rather than permanent bans such as those given to Donald Trump.
Details of his immediate plans are slim, but the Tesla chief portrays himself as a free-speech absolutist.
Other mooted changes include blue verification checkmarks for anyone who subscribes to Twitter’s premium Blue service, which costs $2.99 a month.
Musk is said to favor a subscription-based model over advertiser funding, as it would make Twitter less beholden to advertiser pressure. He has even suggested users could pay with cryptocurrency, including joke currency Dogecoin which Musk has long had an affection for.
Musk has also teased at other new features including an ‘edit’ button to adjust previously posted tweets and also making the platforms algorithms ‘open source to increase trust, defeating the spam bots and authenticating all humans.’
That would enable people to see exactly why Twitter had chosen to make some tweets more visible to users than others.
A top priority for Musk is to eliminate ‘bots’ which frequently generate spam and run scams.
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Read more at DailyMail.co.uk