Musk Plans to Multiply Twitter Revenues More than Five Times Over

Elon Musk has plans for increasing Twitter’s annual revenues to more than $26.4 billion by 2028, marking a more than five-fold increase over current figures. The New York Times reported on the projections contained in a pitch deck the entrepreneur has presented to prospective investors. Twitter took in $5 billion last year in revenue.

Musk is planning to reduce revenue from advertising from 90 percent in 2020 to 45 percent. The projection expects advertising will produce around $12 billion in revenue in 2028. Subscription fees are expected in his plan to take in another $10 billion by that year.

He said that additional revenues by 2028 will include around $1.3 billion from a payments business that will start by bringing in $15 million in 2023.

The world’s richest man and founder of Tesla and SpaceX expects to see Twitter’s cash flow increase to $3.2 billion by 2025 and to $9.4 billion in 2028 according to the report.

Musk and the Twitter board entered into a sales agreement last month that will see Musk buy all of the company’s stock for around $44 billion in cash.

Upon closing the transaction, Musk will have full control of the social media giant. Musk is expected to temporarily serve as CEO until he is ready to hand over day to day operations to the team he expects to assemble.

Among his plans for revitalizing the platform, Musk has pledged to expand the number of users by eliminating spam bots and working to promote free speech principles.

While he expects to initially cut staff to around 7,500, Musk said the company is projected to have more than 11,000 employees by 2025. He also says that average revenue per user will run $30.22 in 2028, up from $24.83 last year.

Musk presented a list of high-level investors on Thursday he says are ready to provide $7.14 billion in funding toward the purchase price of the company. The group includes Sequoia Capital and Oracle co-founder Larry Ellison.

Musk has been drumming up investors to contribute financing toward his purchase of Twitter. He reportedly is looking for cash investors so that he can complete the purchase without liquidating some of his massive holdings.

He reportedly has 19 current investors who have committed $27.25 billion in financing. He has also secured a loan from Morgan Stanley for $6.25 billion that is secured by his stock in Tesla. Other financing is secured by the Twitter stock he currently owns. His primary objective is to obtain financing secured by other parts of his fortune so he will not sacrifice any part of his total control of Twitter.