Edgar Cervantes / Android Authority
- Report details Elon Musk’s alleged ideas to boost Twitter’s profits.
- Some of the ideas are monetizing tweets, increasing celebrity engagement, and lowering salaries for high-level employees.
- Musk allegedly presented these ideas to banks in order to secure billions of dollars in financing for the purchase of Twitter.
The tech world was shaken earlier this week when Twitter The board of directors officially approved the sale of the social network to billionaire Elon Musk. To secure the approximately $45 billion in Musk needed to complete the sale, he went to the banks for large loans. The loan agreements asked Musk how he intends to pay them off with Twitter earnings, which aren’t top secret relatively low.
See also: How to delete your Twitter account
to me ReutersHowever, three sources familiar with these loan agreements have revealed some of Musk’s plans to acquire Twitter to make more money. When we use the word “plans,” we understand that we are not discussing strict obligations. These are just ideas Musk told the banks to make them more comfortable lending him billions of dollars.
This is what we learned:
Elon Musk’s Alleged Ideas To Increase Twitter Profits
- One way to increase profits is to reduce costs. musk Tweet in the past That once Twitter is private, Twitter’s six-figure board member salaries will no longer be necessary, which will represent the millions saved.
- Elsewhere, Twitter’s stock-based compensation for 2021 increased 30%. As the company goes private, this number will drop significantly over time.
- Twitter’s gross margin — the difference between revenue and cost of goods sold, divided by revenue — is pretty low, especially when compared to Meta (formerly Facebook). This means that there are ways to cut costs and thus increase Twitter profits.
- according to Bloomberg sources.
- One of the most interesting ideas is monetizing high profile tweets. This may include charging for third party media sites (like us here at Android saladA fee to include or quote high-value tweets on pages.
- Musk also mentioned encouraging celebrities to use Twitter more in an effort to increase Twitter social engagement.
- In a deleted tweet, Musk suggested drastic changes to Twitter Blue’s premium subscription service. This could include lowering costs, allowing users to pay with cryptocurrency, and blocking ads.
- In another deleted tweet, Musk suggested he wanted to reduce reliance on ads to generate Twitter revenue.
It is also alleged that Musk has plans to replace the current CEO of Twitter, Parag Agrawal. Agrawal took over in late 2021 after Twitter co-founder Jack Dorsey exited the position. Agrawal is expected to remain in office until the Twitter sale is completed. There are no hints of who will take charge yet.