By Peter McLaren-Kennedy • 07 May 2022 • 11:20
A copy of his presentation to the board and major shareholders was obtained by the New York Times. Musk, ever the big thinker and amongst the most ambitious businessman, wants to fundamentally change the business.
The key points in the presentation are:
Musk believes that he can help the company grow its revenue to $26.4 billion (25 billion euros) by 2028. That’s a staggering quintuple increase from last year’s $5 billion (4.74 billion euros).
Musk wants to cut the social media giant’s reliance on advertising to below 50 per cent of revenue. That would see the company’s reliance on advertising fall from 90 per cent in 2020 to around 45 per cent.
Currently, the company earns very little from payments. Musk is looking to raise $1.3 billion (1.23 billion euros) annually from payments, possibly through a replication of what he did with PayPal.
Musk believes he can raise the revenue per average user from the current $5.39 (5.1 euros) to $30.22 (30.20 euros) by 2028. Some of this revenue will come from a pay service that will allow users to tailor their experience on the app.
Currently, 217 million people use the social media platform, but Musk believes he can grow that to 931 million. The bulk of the growth will come from the main platform with the balance, around 250 million, coming from new services.
The presentation refers to a new product, dubbed X. However, it does not provide any details other than the expectation of attracting 104 million new users by 2028.
Musk has indicated that the company will need to lose thousands of its current team, which would be replaced by people with different skills, eventually pushing staff numbers from the current 7,500 to over 11,000.
No bid would be accepted without a sweetener for shareholders, with Musk suggesting this could cost the company an extra $3 billion (2.8 billion euros) annually.
Musk’s buyout plan will add around $13 billion in debt, but he expects that to be covered by the cash the business generates. The amount of “free cash” he predicts will rise to around $9.4 billion (8.9 billion euros) by 2028.
The takeover of Twitter by Elon Musk is being challenged in the courts as not all shareholders as happy with his plans to quintuple Twitter’s revenue, or to change how the organisation operates.
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Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news.
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