A key part of Elon Musk's Twitter takeover pitch was a commitment to revamp the social media platform's revenues and making the company more profitable for its shareholders. The details of Musk's presentation to his super-rich friends and associates now provide a sneak peek into how the tech billionaire will fulfill that promise.
Musk aims to raise the annual revenue of Twitter to $26.4 billion by 2028, a huge jump from $5 billion last year, the presentation showed, according to the New York Times.
Here's how Musk Plans to Do it
In the process of quintupling Twitter's revenue, Musk will drive down the share of advertising in the total revenues. Currently advertising makes up for 90 percent of the revenue but this will go down to just 45 percent of the total revenue under Musk's pitch. By 2028 advertising will contribute $12 billion in revenue, while subscriptions will bring in around $10 billion.
In the last week of April, Twitter's board accepted the takeover bid by Elon Musk nearly two weeks after the world's richest man made the hostile offer.
With the board accepting the $44 billion offer by the Tesla founder, the publicly traded social media giant will become a private company owned by Musk. The tech billionaire succeeded in winning the board's approval primarily because the shareholders found his purchase price offer of $54.20 per-share too sweet to be turned down.
Earlier this week reports said Musk is likely to assume the position of Twitter CEO when the $44 billion takeover deal is completed. With speculations of his potential role of CEO rose, shares of Twitter rose as much as 3 percent on Thursday.
One of the key reasons why the Twitter board accepted what was originally a hostile takeover bid was the level of acceptance Musk's offer had among the investors. Twitter board was almost unanimous in underlining the fiduciary responsibility to the shareholders.
Another component of the revenue boosting plans floated by Musk is the plan to increase Twitter's cash flow to $3.2 billion in 2025 and $9.4 billion in 2028, the NYT reported.
Musk will also work to expand Twitter's user base and the average revenue per user will be raised from $24.83 last year to to $30.22 in 2028. '
The Tesla CEO also plans to bring in about $15 million from a payments business in 2023. This component will go up to nearly $1.3 billion by 2028, the report adds.
Alongside, Musk also plans to boost employee numbers from around 7,500 now to more than 11,000 by 2025.