May 9, 2022 - Technology

Elon Musk's goals for Twitter are beyond ambitious

An illustration of Elon Musk holding the Twitter bird

Photo illustration: Sarah Grillo/Axios. Photo: Britta Pedersen-Pool/Getty Images

Elon Musk envisions a Twitter that is able to more than quadruple its revenue and user base by 2028, while cutting its dependence on advertising, the New York Times reported on Friday, citing a leaked slide deck.

Why it matters: The documents show that Musk imagines himself as able to produce financial growth unlike any the company has seen in its history.

By the numbers: Here are Musk's targets, per the Times:

  • Boost annual revenue to $26.4 billion by 2028, compared to $5 billion last year.
  • Get to nearly 1 billion users. Musk's goal is 600 million users by 2025, up from 217 million last year, and 931 million by 2028.
  • Cut the percentage of revenue from ads to 50%. (Ads were about 90% of revenue in 2020, the Times notes.)
  • Boost paid subscriptions, including growing Twitter Blue (currently $3 per month) to 69 million paying users by 2025 and 159 million by 2028.

Catch up quick: The Twitter purchase is a financial stretch even for the world's richest man.

  • Musk is offering $44 billion, or $54.20 per share, for Twitter.
  • Some of that money is coming from Musk's sale of Tesla shares, while Musk has also arranged other funding commitments, including foreign and domestic investment.
  • Funding will also come from loans Twitter itself takes out to pay back current shareholders.

Yes, but: Both Musk and pitch decks are known for making overly rosy predictions.

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