Inside Elon Musk’s Big Plans for Twitter

Elon Musk has never been accused of having small dreams. It has redesigned at least two industries with Tesla, its electronic vehicle company, and SpaceX, the rocket company – and is now taking its ambitions to Twitter’s $ 44 billion acquisition.

Mr. The world’s richest man, Musk, has in recent days unveiled his grandiose profile to investors – some might say incredible – plans for Twitter and its financial goals. The New York Times got the presentation. Here is a peek that Mr. Musk looks to the social media service in the coming years.

In his pitch deck, Mr. Musk claims it will increase Twitter’s annual revenue to $ 26.4 billion by 2028, up from વર્ષ 5 billion last year.

Under Shri. Musk said advertising would account for 45 percent of total revenue, which would fall from about 90 percent in 2020 to 2028, generating $ 12 billion in advertising and about $ 10 billion in subscriptions, according to the document. Other income will come from businesses like data licensing.

Mr. Musk plans to increase Twitter’s subscription revenue with services like Twitter Blue, for which users pay $ 3 per month to customize their experience on the app. According to Peach Deck, Mr. Musk expects બ 69 million in revenue from Twitter Blue by 2025.

A separate product, X Subscribers, will earn $ 47 million in the same year, according to the document. Document X does not detail what the subscribers are, but Mr. Musk has hinted at launching an ad-free experience on Twitter.

According to the document, Twitter will bring $ 15 million from the payment business in 2023, which will increase to $ 1.3 billion by 2028. Today, the company’s payment business, which includes tipping and shopping, is negligible. There is speculation that Mr. Musk could introduce payment capabilities to Twitter as it helped popularize PayPal, a digital payment service.

With all these changes, Mr. Musk expects that Twitter’s average revenue per user – a key metric for social media companies – could rise from $ 24.83 last year to $ 30.22 in 2028, according to the document.

By 2025, Mr. According to the document, Musk expects Twitter to have 11,072 employees. Which will be around 7,500 today.

But in the meantime, Mr. Musk expects the numbers to fluctuate, rising to 9,225 employees in 2022, then declining to 8,332 in 2023 before re-emerging. Mr. Musk is likely to lay off workers as part of its takeover before bringing in new talent in engineering, a person familiar with the situation said. Stock-based return costs are also expected to increase from $ 914 million in 2022 to just $ 3 billion by 2028.

Twitter will add about $ 13 billion in debt as part of Mister. Musk’s purchase plan. But it expects to pay off that debt as free cash flow – according to Pitch Deck, a measure of how much money the company has to pay off its debt – is set to reach $ 3.2 billion in 2025 and $ 9.4 billion in 2028. According to the document, free cash flow will increase despite an increase in operating costs and expenses.

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