Musk aims to triple Twitter’s revenue | DiePress.com

The advertising share of SMS sales should decrease, and the revenue from subscriptions should increase.

San Francisco Tesla– President Elon musk He wants to significantly increase Twitter sales. It plans annual sales of $26.4 billion by 2028, up from $5 billion last year.”The New York Times‘, citing investor documents.

Accordingly, the share of advertising in sales should fall from 90 to 45 percent, then generate twelve billion dollars in sales, and another ten billion dollars in subscriptions. The newspaper wrote that cash flow should increase as well – to $3.2 billion in 2025 and then to $9.4 billion in 2028. Musk expects Twitter’s headcount to rise from 7,500 to 11,100 by 2025. Neither Musk nor Twitter commented.

Musk wants to buy Twitter for $44 billion. Just last week, the US SMS service approved Musk’s acquisition. At the moment, Twitter has about 217 million users.
Musk wants to handle the acquisition partly with loans, partly with his own money and partly with partners. He recently received $7 billion from a group of investors. They include Larry Ellison, co-founder of Oracle, and venture capitalists Sequoia Capital and Qatar Holdings, according to a stock exchange statement. Ellison, who is considered a friend of Musk’s, gives about a billion dollars.

In addition, Saudi Prince Al-Waleed bin Talal, who initially rejected the acquisition, agreed to bring in his $2 billion stake rather than liquidate it. At the same time, the Tesla boss wants to attract other shareholders to his side and is talking to the former Twitter boss and founder, among others Jack Dorsey.

Is Musk in trouble with the authorities?

Meanwhile, six regulatory experts and two lawyers told Reuters that the Tesla CEO’s plan to bring in foreign investors to fund the acquisition could alert US security agencies. Social media is part of the critical infrastructure in the United States because it collects and processes data from American citizens. That’s why the intimidating Committee on Foreign Investments in the United States (CFIUS), which has already thwarted a number of acquisitions, may be scrutinizing the deal for potential national security risks. “To the extent that Musk’s proposed acquisition of Twitter would involve foreign investment, it is very likely that it would fall within the purview of CFIUS,” said Chris Greiner, national security specialist at law firm Stroock & Stroock & Lavan.

This wouldn’t be the first time that US security agencies have targeted online media takeovers. Recently, the government of former US President Donald Trump launched CFIUS in 2020 to force TikTok’s Chinese parent company ByteDance to sell the short video app. His successor, Joe Biden, abandoned those efforts after ByteDance agreed to changes in how US users’ data is stored and protected.