Washington, May 7: American billionaire Elon Musk, the founder of electric car-making company Tesla and spacecraft manufacturing company SpaceX, intends to quintuple Twitter’s annual revenue to $26.4 billion by 2028, media reported on Saturday.
The New York Times cited Musk’s pitch deck presented to investors, saying that he would quintuple Twitter’s revenue to $26.4 billion by 2028, up from $5 billion in 2021.
Musk also intends to cut Twitter’s reliance on advertising to 45 per cent of total revenue, saying that in 2028 advertising would generate $12 billion in revenue and subscriptions some $10 billion. Other revenue would be generated from different businesses, such as data licensing, tipping, and shopping, according to the document.
The billionaire also expects to increase average revenue per user to $30.22 in 2028, reach 931 million users, have 104 million subscribers for a new unannounced product, which Musk called product X, and hire additional 3,600 employees.
Musk reached an agreement with Twitter on the acquisition of the social network for 54.20 dollars per share in a transaction valued at around 44 billion dollars in late April.
Musk later said that he would like to revolutionise Twitter’s role in public debate as “free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated.”
The billionaire said earlier that he was ready to spend 21 billion dollars of his own funds to seal the deal, and that Morgan Stanley Senior Funding, Bank of America, Barclays, and other institution will provide 25.5 billion dollars in debt financing, with some 12.5 billion dollars of the loan to be secured with Tesla shares. (UNI)
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