The dramatic announcements, tweets, and videos surrounding Elon Musk and Twitter have captured everyone's attention. But the biggest mystery remained: What does Elon want to do with Twitter? We hope to give you some insight into his plans for Twitter as the wealthiest person in the world.
Why did Elon Musk buy Twitter?
Tesla CEO Elon Musk and Twitter are experiencing April's most exciting and historical months. After reconsidering for a second time, Twitter accepted Elon Musk's $44 billion deal to buy the entire social network. The whole conversation began in April when Elon Musk bought a 9.2% stake in Twitter and became the most significant stakeholder.
If you're wondering why Elon Musk bought Twitter, there are likely many reasons behind it. First, Elon wants an open-source, free-speech-based social platform, which Twitter nowadays is incompetent to provide. Second, Elon started to create a debate against Twitter about their disability and irrelevant following. The most followed accounts didn't consistently post, and there was no edit button option on Twitter.
A hilarious thing happened when Elon Musk asked his fans and followers: Do you need any social media now? Consequently, his followers advised him to buy Twitter without creating a new social media platform.
What are Elon Musk's plans for Twitter?
According to Elon Musk, he wants to enhance the overall disability of Twitter by including new features and open-source algorithms to build trust, neutralize artificial spambots, and authenticate all humans. Twitter has many possibilities, and Elon likes to amplify those prospects by functioning with the company and its community.
Elon would plan to apply these key factors in the following areas: He needs no introduction to his plans and ambitions since we know his success stories from two large multi-billion dollar companies: Tesla and Space X.
Making Twitter a private company:
Elon Musk has to face legal troubles from the United States Security Exchange Commission (SEC). The SEC argued to reveal Twitter's acquisition within a few days, but he failed to publish it.
However, for those who know that making the company private would prevent Elon from getting warnings and notices from its shareholders and SEC commissioner. Public companies' regulators' reports can be publicly viewed, which ruins the companies' financial performance and increases the high risk of getting bullied.
That's where Elon immediately announces that he's changing the company from public to private. Elon Musk's Twitter Pitch Deck is summarized here.
Quintuple revenue to $26.4 billion by 2028:
Elon Musk announced that he would charge governance authorities and organizations to use Twitter. He also publicly announced the edit tweet option in Twitter Blue, a premium version of Twitter available in very few countries. However, to quintuple revenue, Musk has several plans and strategies ahead.
According to a New York Times report, Twitter's an advertising and subscription services would generate total revenue of $12 billion and $10 billion by 2028. However, other services like payment businesses and data licensing would also generate significant revenue for the company.
What is a payment business?
Payment services like PayPal would play an emerging role in completing payment procedures for the advertisers' businesses. From now on, you wouldn't have to deal outside of Twitter as Elon would merge his payment services company, PayPal, into Twitter. Twitter plans to generate more than $15 million from this payment business procedure in 2023, with total revenue of $1.3 billion by 2028.
Average Revenue Per Unit (ARPU) will increase by $5.39.
Elon Musk anticipated increasing the average revenue generated per user by $5.39, with an estimated $30.22 in 2028. The Average Revenue Per Unit (ARPU) is a beneficial measurement for businesses in the telecommunications and media industries. It is the mainstream source for the media to generate revenue from its subscribers or users.
Hire more employees and reach more users.
Elon recently encouraged his Twitter employees to focus on their work and motivated them to continue. The New York Times report also found that Twitter's total employees will reach 11,072 by adding 3,600 new employees by 2025. Unfortunately, Elon has backup plans, like shedding some workers by defining their values, work, and acquaintances.
On the other hand, his broad interest in reaching more people has expanded by multiple triples and quarters. He plans to gain more than 600 million users from the current 217 million (expected) by 2025.
In contrast, it will keep going every year and will acquire an additional 69 million users for its Twitter Blue services by 2025, according to the report.
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