Elon Musk aims to quintuple Twitter's revenue

Elon Musk aims to quintuple Twitter's revenue

To US$26.4 billion by 2028.

By on

Elon Musk is aiming to increase Twitter's annual revenue to US$26.4 billion (S$36.6 billion) by 2028, up from US$5 billion last year, the New York Times reported, citing a pitch deck presented by the world's richest man to investors.

Advertising will fall to 45 percent of total revenue under Musk, down from about 90 percent in 2020, generating US$12 billion in revenue in 2028, while subscriptions are expected to pull in another US$10 billion, according to the report.

The head of electric-vehicle maker Tesla also aims to increase Twitter's cash flow to US$3.2 billion in 2025 and US$9.4 billion in 2028, the newspaper reported, citing the presentation.

Musk clinched a deal last month to buy Twitter for US$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 chief.

The billionaire has promised to revitalise the company and expand the number of users by cracking down on spambots 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, a person familiar with the matter told Reuters.

Among his other goals, Musk expects the social media company to bring in US$15 million from a payments business in 2023 that will grow to about US$1.3 billion by 2028, the NYT cited the document as saying.

Musk anticipates he can increase Twitter's average revenue per user to US$30.22 in 2028 from US$24.83 last year, it added.

He also expects Twitter to have 11,072 employees by 2025, up from around 7500.

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 raft of changes to the social media giant's Twitter Blue premium subscription service, including slashing its price.

Last week, Musk listed a group of high-profile investors who are ready to provide funding of US$7.14 billion for his Twitter bid, including Oracle co-founder Larry Ellison and Sequoia Capital.

Musk has increased the financing commitment to US$27.25 billion, which includes commitments from 19 investors, and reduced a margin loan from Morgan Stanley tied to his Tesla stock to US$6.25 billion.

He has already secured commitments for US$13 billion in loans against Twitter shares.

Musk could not be reached for comment. Twitter did not immediately respond to a Reuters request for comment.

To reach the editorial team on your feedback, story ideas and pitches, contact them here.

Most Read Articles