Elon Musk is making huge plans to make Twitter massive just as he has done with Space-X and Tesla. He plans on throwing the old book away and to write an entirely new one. It relies far less on advertising, which currently provides 94% of all income for the platform. That makes advertising boycotts much less effective. If he achieves his goals, he will be able to pay off the loans he took on to buy Twitter in hardly any time at all.
Musk is predicting the changes he plans to make will raise revenue from $5 billion to $26.4 billion by 2028. But, for now, it is just all plans as the takeover of the company will take about six months. But, after the last T is crossed and the last I is dotted, you can expect things to begin moving quickly as Musk does not let moss grow under his feet. He has stated that he plans to fire 1,000 workers first thing.
I strongly believe that all managers in a technical area must be technically excellent.
Managers in software must write great software or it’s like being a cavalry captain who can’t ride a horse!
— Elon Musk (@elonmusk) May 6, 2022
Twitter currently has 217 million users and Musk thinks it will hit 600 million by 2025 and by 2028, he estimates it will have 800 million users. In doing so, Musk believes he will open up the hidden potential the platform has currently. Twitter Blue will cost $3 dollars a month and will start with 69 million subscribers.
Musk has a mystery service called X and he anticipates it will have 9 million subscribers to begin with, although he has not explained what X actually entails.
Twitter will always be free for casual users, but maybe a slight cost for commercial/government users
— Elon Musk (@elonmusk) May 3, 2022
Musk’s plan to buy Twitter has driven employees bonkers, from concern about workplace culture to a focus on their very jobs.
Musk projects long-term workforce growth. Twitter has about 7,500 employees, which Musk estimates will increase to 9,225 this year before tumbling to 8,332 in 2023. Hiring then begins and continues until by 2025, Twitter has 11,072 workers.
Given the timing of any potential deal, which is not likely to be completed until late this year, it would realistically be 2023 before Musk could take sufficient hold of the company to realign its workforce.
Musk also plans to have advertising provide a smaller share of Twitter’s revenue than it does now, projecting that subscriptions and other operations, such as data licensing, will increase. Ads are now about 90 percent of Twitter’s revenue.
Musk’s other goals include developing a payments business that nets Twitter $15 million in revenue; achieving a level of average revenue per user to $30.22 in 2028, up from the current level of $24.83; and having a free cash flow level of $9.4 billion.