The plan presented to investors plans to quadruple the audience and develop subscriptions.
The management of Twitter has never been able to increase the number of users of the social network or monetize them well? This does not scare its new owner, Elon Musk, who says he is ready to take up the challenge. The boss of SpaceX and Tesla presented investors with a costed development plan, which the New York Times has procured. The stated objectives are ambitious to say the least, but they have convinced the financial community: the entrepreneur has already secured $28.1 billion in financing from banks or funds, out of the $44 billion that this acquisition will cost him.
Elon Musk, who will become interim CEO of Twitter when the sale is effective, intends to increase the social network’s revenue by five by 2028. According to the presentation, the company’s turnover would increase from 5 to 26 .4 billion dollars. To achieve such growth, the billionaire intends to rely on both a sharp increase in the audience of the social network and the development of new services.
The plan relies heavily on a four-fold increase in the number of monetizable daily users, from 229 million today to 931 million in 2028. How does Elon Musk plan to go about this? He doesn’t say a word… Another project is to reduce the weight of advertising in revenues from 90 to 45%, which would represent 12 billion dollars within six years. Another ten billion would be generated by subscription services. The first, launched in 2021 and named Twitter Blue, provides access to additional features. Elon Musk is aiming for 159 million subscribers in 2028. To this are added 104 million subscribers for a mysterious project, which according to the New York Times could be an ad-free version of the social network.
Finally, the future boss projects $ 1.3 billion in commissions generated by the social network’s payment activities. The latter allows you to send money to influencers or pay to attend audio conferences, but this product launched in 2021 is still in its infancy.
On the cost side, Elon Musk plans to hire more than 3,500 employees by 2025 for a total of 11,000 people. But in the meantime, a clean cut of nearly 1,000 jobs is planned for 2023. The billionaire certainly anticipates a talent drain once the sale is complete – his personality being far from unanimous among the staff of the social network -, but also to make room for his own troops. The entrepreneur has already spread the word. “If the sale is made, the company will be hyper-focused on software engineering, design, IT security and server engineering”he wrote on Twitter on Friday. “I think all managers should excel in their technical area. Otherwise it would be like being a cavalry captain without knowing how to ride a horse. And the expectations on professional ethics will be high.” The candidates already seem to be wriggling. According to the specialized site Glassdoor, consultations of recruitment ads at Twitter jumped 263% at the end of April.