Since the news broke out a couple of weeks ago confirming Elon Musk taking over Twitter, there have been numerous talks taking rounds on what lies ahead for the social media platform that has been one strong channel of voice for millions. While we have all heard the news of Elon Musk takeover leading to firing of several executives across the globe, he has also been working aggressively to distribute a pitch of desk to investors that outlines his grand plans for Twitter.
Musk has already changed the way we view electric vehicles with Tesla and consider how space tech is becoming part of our lives with SpaceX, his dreams and ambitions have always been big. With Twitter, these are only about to get more ambitious and grander. In his pitch deck to his investors, he has put a plan for his targets from a revenue-generation viewpoint, overall financial targets to gaining more audience and building new product lines for Twitter. With the New York Times having access to this pitch deck, here is what we have found via there article on how Musk will take the social media platform to the future:
Less dependence on Advertising
Musk plans to cut Twitter’s deep reliance on advertising revenue from 90 percent in 2020 to only 45 percent in the next few years. His other plans include what can be seen as a subscription model that would be close competition to ad revenue by 2028. Other streams would include revenue generation from businesses such as data licensing.
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4x times more revenue by 2028
Musk’s deck to the investors also mentions his claims to increase the social media giant’s annual reverence to over $26 billion by 2028. The New York Times reports that this will be an increase of close to $5 billion from last year.
Revenue focused approach on per user
Musk strongly believes, claims, and anticipates that he will be able to lift Twitter’s present average revenue per user to a figure close to $30.22 by 2028 which is up by $5.39 from the per user revenue from last year.
Also, let’s not forget an $8 per month blue tick already announced that will aid in generating large sums of revenue.
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Digital payment services revenue model
Twitter would bring in $15 million from a payment business by the end of next year, another way to increase revenue claimed by Musk. As you are aware, Twitter’s payment business today does not include tipping or shopping at large and there is a huge speculation that Musk is seeking to introduce payment abilities to the platform. One such example can be Paypal, a brand Musk has been a rather close pioneer of.
Increasing the user base
Every social media platform is focused on offering the best user interface, attracting more users and building a strong communication channel so as to stay ahead in the game. Musk’s plan for Twitter surely does include increasing his user base from 217 million at the end of this year to 600 million by 2025 and a whopping 931 million by 2028.
The New York Times reports that most of his growth is subjected to come from the ad-supported businesses, including the Twitter Blue product – which aims at users to pay $3 per month to customize their experience on the platform app.
The deck further mentions that Musk is expecting to have 69 million users of Twitter Blue by 2025 and 159 million by 2028.
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New product X’s million subscribers
Musk plans to launch a new product coined X which is given a large figure of 104 million subscribers by 2028 as per his pitch deck to the investors. While the New York Times reports that Musk via his pitch deck does hint on an ad-free experience potentially with the new product X, the subscribers for X within the first year are expected to be close to 9 million.
Hiring new employees
You heard it right! While there are thousands being laid off, Musk does plan to have over 11,000 employees as per his pitch deck. A figure up by thousands from what it is today. The report does show fluctuation in these numbers over the years where they see a decline till 2023 and then a rise of new talent in engineering and other skills relevant to his plans.
The report also suggests that stock-based compensation costs are expected to rise with Musk entering the picture in Twitter.
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Raising free cash flow
For Musk’s buyout plan, Twitter is looking to add close to $13 billion of debt. The New York Times reports that Musk is expecting to pay out this debt as free cash flow – a measure of how much money a brand can and has to service its debt – which is set to grow to $3.2 billion in 2025 and $9.4 billion in 2028. A rise in free cash flow will be seen as operation costs and other costs also rise as per the pitch deck.
The growth and expansion plans pitched by Musk do seem to be engaging us and the global market. And we all await to see how this unfolds for the brand, the employees, its stakeholder and most importantly its users.
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