Business policy and strategy
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| Removal of Ads: Twitter is almost totally dependent on advertisements to remain profitable. In 2021, the report showed revenue from advertising of $1.41 billion out of total revenue of $1.57 billion. Musk has expressed support for a monthly subscription, but he wants it to be less expensive than it is now. At this month's Conference held, he stated that his involvement in Twitter is "not a way to make money." However, he will require the platform to continue to earn revenue because he paid for more than 50 percent of it with Morgan Stanley and other institutions. To better serve his debt, he will most likely need to increase Twitter's ad revenue rather than just maintain it. And, as previously stated, users enjoy the app's freedom, and adding a cost to the previously free platform may encourage people to abandon it entirely.
To summarize, even if he truly is purchasing Twitter in the name of the community, he has purchased a business. And simply running Twitter as a nonprofit for what he refers to as the greater good isn't an option. His Twitter deal is partially funded with bank debt, which will ultimately demand repayment; some of the debt is also connected to his Tesla shares, and Tesla stock is both volatile and extremely valuable. If it were to crash, Musk's finances would quickly become precarious. References How Much Is Twitter Worth? GOBankingRates. (2022). Retrieved 4 May 2022, from https://www.gobankingrates.com/money/business/how-much-is-twitter-worth/. Why Elon Musk's Plans to 'Fix' Twitter Will Be Harder to Implement Than He Thinks. Time. (2022). Retrieved 4 May 2022, from https://time.com/6170494/elon-musk-fix-twitter-plans/. How will Elon Musk make Twitter worth (at least) $44 billion? Vox. (2022). Retrieved 4 May 2022, from https://www.vox.com/recode/23041717/twitter-musk-business-plan-peter-kafka-column. Elon Musk considers ‘slight’ Twitter fee for commercial users | Twitter | The Guardian. Amp.theguardian.com. (2022). Retrieved 4 May 2022, from https://amp.theguardian.com/technology/2022/may/04/elon-musk-considers-slight-twitter-fee-for-commercial-users. Elon Musk considers ‘slight’ Twitter fee for commercial users | Twitter | The Guardian. Amp.theguardian.com. (2022). Retrieved 4 May 2022, from https://amp.theguardian.com/technology/2022/may/04/elon-musk-considers-slight-twitter-fee-for-commercial-users. Download 1.74 Mb. Share with your friends:
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