Inside Elon Musk's big plans for Twitter

Inside Elon Musk’s big plans for Twitter – Mail Bonus

Elon Musk has never been accused of dreaming a little. He has reinvented at least two industries with Tesla, his electric car company, and SpaceX, a rocket company – and now his ambition is to move to his $ 44 billion purchase on Twitter.

Musk, the richest man in the world, has in recent days unveiled investors on the pitch, outlining his dramatic – some might say incredible – plans for Twitter and its financial goals. The New York Times got the introduction.

Here is an insight into what Musk sees for the social media service in the coming years.

Five times revenue of 26.4 billion dollars in 2028.

Musk estimated that he would increase Twitter’s annual revenue to $ 26.4 billion by 2028, compared to $ 5 billion last year.

Reduce Twitter’s trust in advertising to less than 50% of revenue.

Under Musk, advertising would drop to 45% of total revenue, compared to about 90% by 2020. By 2028, advertising would generate $ 12 billion in revenue and subscriptions close to $ 10 billion, according to the document. Other income would come from companies such as data licenses.

Generate $ 15 million in payment transactions.

Twitter would bring in $ 15 million from payment transactions by 2023, according to the document, which would grow to about $ 1.3 billion by 2028. Today, the company’s payment transactions, which include tips and purchases, are negligible. There has been speculation that Musk may be introducing payment options on Twitter in light of the fact that he helped increase the popularity of PayPal, the digital payment service.

Increase the average revenue per user by $ 5.39.

With all these changes, Musk expects to be able to raise Twitter’s average revenue per user – a key measure for social media companies – to $ 30.22 in 2028 from $ 24.83 last year, according to the document.

Reach 931 million users by 2028.

Musk estimates that the total number of Twitter users will increase from 217 million at the end of last year to almost 600 million in 2025 and 931 million after six years. Most of that growth will come from Twitter-backed ads, including Twitter Blue, which users pay $ 3 a month to customize their in-app experience. According to the stadium, Musk expects 69 million Twitter Blue users in 2025 and 159 million in 2028.

Have 104 million subscribers to Mysterious X by 2028.

Included in Musk’s overall rating are what appear to be subscribers to a new product called X, which would have 104 million users by 2028, according to the document. The document did not disclose what X subscribers were, but Musk has hinted at promoting an ad-free experience on Twitter. The X Subscribers product will be launched in 2023, with 9 million users expected in its first year.

Hiring 3,600 employees – after throwing away hundreds.

By 2025, Musk expects Twitter to have 11,072 employees, according to the document. That would rise from about 7,500 today.

But in the meantime, Musk expects the number to fluctuate, rising to 9,225 in 2022, then falling to 8,332 in 2023 before increasing again. Musk is likely to retire as part of his takeover before bringing in new talent in engineering, said a person with knowledge of the situation. Wage costs for equities are expected to rise to over $ 3 billion in 2028, from $ 914 million in 2022.

Increase free cash flow to 9.4 billion dollars.

Twitter will add about $ 13 billion in debt as part of Musk’s acquisition program. But he expects to repay the debt, as free cash flow – a measure of how much money a company has to pay off its debt – is set to grow to $ 3.2 billion in 2025 and $ 9.4 billion in 2028, according to calculations. Free cash flow would increase even as operating costs and expenses also increased, according to the document.

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