Musk aims to quintuple Twitter revenue to $26.4 billion by 2028 -NYT

Elon Musk arrives at the In America: An Anthology of Fashion themed Met Gala at the Metropolitan Museum of Art in New York, New York, U.S., May 2, 2022. REUTERS/Andrew Kelly

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May 6 (Reuters) – Elon Musk aims to boost Twitter’s (TWTR.N) annual revenue to $26.4 billion by 2028, up from $5 billion last year, The New York Times reported on Friday. , citing a pitch deck presented by the world’s wealthiest. investor man.

Advertising will drop to 45% of total revenue under Musk, from around 90% in 2020, generating $12 billion in revenue in 2028, while subscriptions are expected to bring in another $10 billion, according to the report.

The head of electric vehicle maker Tesla Inc (TSLA.O) also aims to boost Twitter’s cash flow to $3.2 billion in 2025 and $9.4 billion in 2028, the newspaper reported, citing the presentation.

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Musk struck a deal last month to buy Twitter for $44 billion in cash, in a move that will transfer control of the social media platform populated by millions of users and world leaders to the chief. of Tesla Inc (TSLA.O).

The billionaire has promised to revitalize the company and increase user numbers by cracking down on spambots and reducing the amount of moderation to facilitate more “free speech”.

After the deal closes, Musk is expected to become temporary CEO of Twitter, a person familiar with the matter told Reuters on Thursday. Read more

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

Musk projects he can increase Twitter’s average revenue per user to $30.22 in 2028 from $24.83 last year, he added. He also expects Twitter to have 11,072 employees by 2025, up from around 7,500.

Revenue from Twitter Blue, the company’s premium subscription service launched last year, is expected to reach 69 million users by 2025, the NYT reported.

Musk, in a now-deleted tweet last month, suggested a series of changes to the social media giant’s Twitter Blue premium subscription service, including lowering its price. Read more

On Thursday, Musk listed a group of high-profile investors who are willing to provide $7.14 billion in funding for his Twitter offering, including Oracle co-founder Larry Ellison and Sequoia Capital.

Musk increased the funding commitment to $27.25 billion, which includes commitments from 19 investors, and reduced a Morgan Stanley margin loan tied to its Tesla stock to $6.25 billion. It has already secured commitments for $13 billion in loans against Twitter stock. Read more

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

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Reporting by Tiyashi Datta and Ankur Banerjee in Bengaluru; Editing by Anil D’Silva

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