Elon Musk aims to quintuple Twitter Inc (NYSE:TWTR)’s revenue to above US$26bn by 2028 once his US$44bn bid is approved by shareholders and regulators.
As part of his plan to take over the social media platform, Musk also plans to fire 1,000 staff, most of whom will be laid off during the transition period, according to a pitch presentation made to investors this week and seen by the New York Times.
However, Musk anticipates making thousands more hires within the next three years, increasing the number of employees to 11,000 from the current 7,500, with many of the new hires to be engineers.
Twitter’s annual revenue was US$5bn last year.
The pitch from the billionaire entrepreneur, who reportedly also wants to take over as CEO temporarily, outlined an ambition to reduce Twitter’s reliance on ads to less than 50% of revenue and to boost the platform’s user base with services such as Twitter Blue.
Twitter Blue is an existing service that offers users extra features for US$3 a month, though it may be cut to US$2, with Musk believing it will reach 69mln users by 2025, and 159mln by 2028.
Musk also proposed a new subscription service called “X,” but did not elaborate on what it would offer, though he hopes to sign up 9mln users in the first year before reaching 104mln users in 2028.
By 2028, he projected subscriptions would account for US$10bn of total revenue, with advertising bringing US$12bn, equal to 45% of total revenue, and down from 90% in 2020.
This follows news last week in which Musk said there could be a “slight cost” for commercial and government users.
Data licensing is expected to account for US$4.4bn of the 2028 revenue.
Musk is said to prefer a subscription-based model over advertiser funding, which would make Twitter less susceptible to advertiser pressures.
Musk has even suggested users pay with cryptocurrency, including the joke currency Dogecoin, which he personally loves.
Musk is also keen to expand Twitter’s payments business, which includes tipping and shopping, which could boost its revenue from an estimated US$15mln next year to US$1.3bn in 2028.
According to NYT, Twitter’s potential owner may also add a payment system to the app, mirroring PayPal, a service that he helped create more than two decades ago.
Musk opines Twitter can grow its global user base from 217mln to 600mln in 2025, and then to 931mln in 2028.