Elon Musk is looking to increase Twitter’s annual revenue (TWTR.N) to $ 26.4 billion by 2028, up from $ 5 billion last year, the New York Times reported on Friday, citing a pitch deck introduced by the world’s richest man investors.
Advertising will fall to 45% of total revenue under Musk, from about 90% in 2020, generating $ 12 billion in revenue in 2028, while subscriptions are expected to pull another $ 10 billion, according to the report.
The head of electric vehicle maker Tesla Inc. (TSLA.O) also aims to increase Twitter’s cash flow to $ 3.2 billion in 2025 and $ 9.4 billion in 2028, the newspaper reported, citing a presentation.
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Musk made a deal last month to buy Twitter for $ 44 billion in cash, in a move that will shift control of a social media platform populated by millions of users and global leaders to the head of Tesla Inc. (TSLA.O).
The billionaire has vowed to revitalize the company and expand the number of users by cracking down on spam bots and reducing the amount of moderation to allow for more “freedom of speech”.
Following the signing of the contract, Musk is expected to become the interim CEO of Twitter, a person familiar with the matter told Reuters on Thursday.
Among his other goals, Musk expects the social media company to bring in $ 15 million from the payment business in 2023, which will grow to about $ 1.3 billion by 2028, the NYT reported, the document quoted him as saying.
Musk predicts it could increase its average Twitter 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 about 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.
In a now-deleted tweet last month, Musk proposed a series of changes to social media giant’s Twitter Blue premium subscription service, including a price cut.
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Musk on Thursday named a group of high-profile investors willing to secure $ 7.14 billion in funding for his Twitter offer, including Oracle co-founder Larry Ellison and Sequoia Capital.
Musk increased its financing commitment to $ 27.25 billion, which includes the liabilities of 19 investors, and reduced the marginal loan from Morgan Stanley tied to his Tesla shares to $ 6.25 billion. He has already secured $ 13 billion in loans on Twitter shares.
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Musk was not available for comment. Twitter did not immediately respond to Reuters’ request for comment.