Economy

Twitter, the projects of the new owner, Elon Musk



After its takeover for 44 billion dollars by billionaire Elon Musk, what will become of Twitter? By separating from the outset from the three senior executives of the company, the new owner of the social network with the blue bird has revived the concerns of the 7,500 employees who remember that, in June, he wanted to lay off three quarters of between them.

If the project has since been denied to Bloomberg, fears of a relaxation of the moderation of publications on Twitter are real. In a message to advertisers, Elon Musk says he wants to network “an online public square where a wide variety of opinions can debate in a healthy, without resorting to violence”.

A weakening of the moderation of hate or misinformation content could nevertheless put off advertisers, in a context of erosion of online advertising which is hurting the digital giants. However, 90% of Twitter’s revenue today is generated by advertising.

Elon Musk predicts nearly a billion users by 2028

Elon Musk would have the project to diversify the sources of income of the network so that advertising only represents 45% in 2028. Which supposes to profoundly transform its economic model.

“Twitter is a long languishing asset, but it has incredible potential, said Elon Musk during the presentation of the results of his electric vehicle manufacturer Tesla. It is clear that other investors and I will
pay way too much right now. But its potential is far greater than its current value. »

According to him, the company’s revenues could be multiplied by five, and the number of subscribers by four, thus increasing from 271 million at the end of 2021 to nearly one billion in 2028.

“Do-it-all app”

One of the solutions would be to make Twitter partly paid. The network has already launched Blue, an offer allowing the user to have access to advanced functions (such as the correction of tweets) for 5 dollars per month but which does not appeal. Elon Musk estimates that one in six users could be seduced by a lower price, 2 or 3 dollars per month. Enough to generate $5.7 billion in additional revenue.

The billionaire also mentioned a “all-purpose app” where the social network would be added a messaging system (like WhatsApp or Telegram), a payment system (like ApplePay), service orders (like Uber).

This project named “X” would be directly inspired by the very popular Chinese application WeChat. “If we could do the same, or come close to it with Twitter, it would behuge success,” judge Elon Musk, even though identical projects carried out by Snapchat or Uber did not convince.

A foundation ?

Another track that Elon Musk would study, according to an exchange of letters with the founder of Twitter Jack Dorsey revealed during the trial with the platform: to take the social network out of the classic business model.

“What should it look like? », Elon Musk asked Jack Dorsey. ” It could be an open sour protocolthis, backed by some sort of foundation that does not own it, but acts in its interest,” replied the ex-CEO of Twitter.

“It would be worth worth trying to move Twitter in a better direction and make it more decentralized,” approved Elon Musk half an hour later…

“In Europe, it will fly according to our European rules”

But even if Twitter ceases to be a listed company, it will also have to satisfy the banks which lent Elon Musk 13 of the 44 billion dollars for his purchase (including 1.35 billion for the French companies BNP Paribas and Société Générale) and who do not intend to be exposed too long to the risk of the whimsical billionaire.

Finally Yes “the bird is free”as Elon Musk tweeted Thursday night, his Twitter will have to reckon with regulators.

“In Europe, it will fly according to our European rules”, commented EU Internal Market Commissioner Thierry Breton, reminding the billionaire of an exchange they had in May.





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