Elon Musk at the MET gala. Photo by Reuters
Elon Musk aims to increase Twitter’s annual revenue to $ 26.4 billion by 2028, from $ 5 billion last yearThe New York Times reported on Friday, citing a speech given by the world’s richest.
Advertising will be less than 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 the electric vehicle manufacturer Tesla also aims to boost Twitter’s cash flow to $ 3.2 billion in 2025 and $ 9.4 billion in 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 would transfer control of the social media platform inhabited by millions of users and global leaders to Tesla’s boss.
The billionaire promised to revitalize the company and expand the number of users by curbing 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. Photo by AFP
After the deal closes, expect that Musk became the interim CEO of Twittersomeone familiar with the matter told Reuters on Thursday.
Among his other goals, Musk expects the social media company to generate $ 15 million from a payment business in 2023 that will grow to approximately $ 1.3 billion by 2028, according to a document cited by the NYT.
Musk expects he can increase Twitter’s average revenue per user to 30.22 in 2028 from 24.83 last year, he added. It 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 deleted tweet last month, suggested some changes to the service. Twitter Blue premium subscription from the social media giant, including lowering its price.
Thursday, Musk enlisted a group of high-profile investors which is set to provide $ 7.14 billion in funding for their Twitter offering, along with Oracle co-founder Larry Ellison and Sequoia Capital.
Musk increased its funding pledge to $ 27.25 billion, which includes pledges from 19 investors, and reduced a Morgan Stanley margin loan tied to its Tesla shares to $ 6.25 billion. It has already secured $ 13 billion in debt pledges against Twitter’s stock.
Unable to reach musk for comment. Twitter did not immediately respond to a request for comment from Reuters.
More shareholders support Musk
Those who put money for Musk. Photo by Reuters
Meanwhile, on Thursday Musk garnered $ 7 billion in support for his acquisition. This is from a series of investors, including a few pesos Silicon Valley heavyweights like Larry Ellison, co-founder of Oracle.
The other investors are Sequoia Capital Fund, with a pledge of $ 800 million, and VyCapital, with $ 700 million, according to a document filed with the United States Securities and Exchange Commission (SEC, for its acronym in English). But the biggest contribution, $ 1,000 million, went to Ellison, a member of Tesla’s 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 revealed that he was selling $ 8.5 billion worth of Tesla stock to finance the purchase. He later tweeted that he had no plans to sell more shares of the company, which means it needs external commitments to close the $ 44,000 million purchase.
Due to new funding disclosed to the SEC on Thursday, Musk will cut the $ 12.5 billion margin loans it relies on by half.6,250 million dollars. The transaction now has $ 27.25 billion in cash and stock, compared to $ 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
Source: Clarin
