American billionaire Elon Musk, the founder of electric car-making company Tesla and spacecraft manufacturing company SpaceX, intends to quintuple Twitter's annual revenue to USD 26.4 billion by 2028, media reported on Saturday.
The New York Times cited Musk's pitch deck presented to investors as saying that he would quintuple Twitter's revenue to USD 26.4 billion by 2028, up from USD 5 billion in 2021.
Musk also intends to cut Twitter's reliance on advertising to 45 pc of total revenue, saying that in 2028 advertising would generate USD 12 billion in revenue and subscriptions some USD 10 billion. Other revenue would be generated from different businesses, such as data licensing, tipping, and shopping, according to the document.
The billionaire also expects to increase average revenue per user to USD 30.22 in 2028, reaching 931 million users, have 104 million subscribers for a new unannounced product, which Musk called product X, and hire additional 3,600 employees.
Musk reached an agreement with Twitter on the acquisition of the social network for USD 54.20 per share in a transaction valued at approximately USD 44 billion in late April. Musk later said that he would like to revolutionize Twitter's role in public debate as "free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated."
The billionaire said earlier that he was ready to spend USD 21 billion of his own funds to seal the deal, and that Morgan Stanley Senior Funding, Bank of America, Barclays, and other institution will provide USD 25.5 billion in debt financing, with some USD 12.5 billion to of the loan to be secured with Tesla shares.