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 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 percent. (Ads were about 90 percent 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.