Elon Musk aims to grow his Twitter audience to almost

Elon Musk aims to grow his Twitter audience to almost a billion by 2028

It is now clear that Elon Musk’s deal to buy Twitter will encounter many obstacles along the way, but this does not negate the buyer’s Napoleonic plans for the development of this social network. From the presentation to investors, it was revealed that by 2028, he expects to expand Twitter’s audience to 931 million people and grow revenue more than fivefold to $26.4 billion.

    Image source: Reuters, Andrew Kelly

Image source: Reuters, Andrew Kelly

The existence of such a document is inevitable given Elon Musk’s desire to raise borrowed funds to buy Twitter, according to the publication on the pages The New York Times. For example, $13 billion of the loans raised are provided by banks under the guarantee of Twitter itself, so it was important for Musk to show his ability to generate free cash flow. The presentation said that if free cash flow doesn’t exceed $3.2 billion in 2025, it will grow to $9.4 billion by 2028 You receive.

If Twitter generated $5 billion last year, Elon Musk expects that number to grow to $26.4 billion by 2028.In 2020, the share of advertising revenue reached 90% of company revenue, but by 2028 a potential buyer intends from Twitter to reduce that stake to 45%, which equates to $12 billion in monetary terms. Another $10 billion in revenue will come from subscriptions, with the remaining funds coming from other activities like data licensing.

Elon Musk was once involved in the founding of the PayPal payments system, so the experience he gained back then will help him in the development of its sister service, Twitter. Payments will bring in $15 million for the company next year, and sales in this area are expected to grow to $1.3 billion by 2028. By the way, the subscription service Twitter Blue appears separately in the presentation, its audience is expected to grow to 69 million users by 2025, and up to 159 million people by 2028.

If we talk about the dynamics of the increase in Twitter audience in general terms, last year it reached 217 million people. The promise to get almost every American to use the social network is part of Elon Musk’s plan to expand his reach. By the middle of the decade, 600 million people are expected to use the network, and by 2028 the audience is expected to reach 931 million users. Specific revenue per user will eventually grow from $24.83 last year to $30.22 in 2028.

Twitter employees’ fears about the inevitability of downsizing have some basis, since this indicator does not change linearly in Musk’s presentation. Now the number of employees of the company reaches 7500 people. This year it can grow to 9225 people, and next year it will be reduced to 8332 people. In the future, the workforce will only grow, by the middle of the decade it could increase to 11,072 people. It’s obvious that Elon Musk wants to lay off some specialists and hire more new ones in the months following the deal.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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