World Conglomerate Elon Musk Targets IDR 382.7 Trillion In Twitter Revenue By 2028, Up Five Times From Now

Elon Musk targets Twitter's revenue to increase fivefold by 2028. (photo: pixabay doc)

JAKARTA – After acquiring Twitter Inc., and making it a private company, Elon Musk is now targeting to increase Twitter's annual revenue to 26.4 billion US dollars (IDR 382.7 trillion) by 2028. This target is five times higher than last year's revenue. which was only 5 billion US dollars last year.

Elon Musk's ambitious goals were first reported by the New York Times report on Friday, May 6, citing the pitch deck presented by the world's richest man to investors.

In the report, advertising revenue would actually fall to 45 percent of Twitter's total revenue under Musk. That number has fallen by half as Twitter's 2020 revenue will be about 90% from advertising. Advertising on Twitter is estimated to be targeted to generate 12 billion in revenue by 2028, while revenue from subscriptions is expected to attract another 10 billion US dollars.

The CEO of Tesla Inc (TSLA.O) also wants to increase Twitter's cash flow to $3.2 billion by 2025 and $9.4 billion by 2028.

Musk reached a deal last month to buy Twitter for $44 billion (IDR 636.6 trillion) in cash, in a move that would shift control of the social media platform home to millions of users and global leaders to himself.

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

The global conglomerate has pledged to revitalize the company and expand the number of users by cracking down on spam bots and reducing the amount of moderation to facilitate more "freedom of speech". After closing the deal, Musk is expected to become the interim CEO of Twitter,

Among other targets, Musk expects the social media company to generate $15 million from the payments business by 2023 which will grow to around $1.3 billion by 2028.

Musk anticipates he can increase median revenue per Twitter user to $30.22 by 2028 from $24.83 last year. He also expects Twitter to have 11.072 employees by 2025, up from about 7.500.

According to the NYT report, revenue from Twitter Blue, the company's premium subscription service launched last year, is expected to have 69 million users by 2025.

Musk, in a now-deleted tweet last month, suggested a number of changes to social media giant Twitter Blue's premium subscription service, including cutting its price.

Last Thursday, Musk listed a group of well-known investors who were ready to put up $7.14 billion for his Twitter offering, including Oracle co-founders Larry Ellison and Sequoia Capital.

Musk has increased financing commitments to $27.25 billion, which includes commitments from 19 investors, and reduced margin borrowing from Morgan Stanley linked to his Tesla stake to $6.25 billion. He has secured a $13 billion loan commitment against Twitter stock.

Musk could not be reached for comment by the media on this report. Twitter did not immediately respond to a request for comment from Reuters.