Topline
Twitter is nearing profitability, its billionaire proprietor and CEO Elon Musk claimed in a Tuesday interview, sharing additional particulars on his lofty long-term aspirations for his social media firm and rekindling his hopes for a so-called superapp impressed by Chinese language tech large Tencent.
Elon Musk laid out his lofty plans for Twitter.
Key Details
Twitter ought to turn into cash-flow constructive throughout the second quarter, Musk mentioned in a live-streamed, hour-long interview with Morgan Stanley managing director Michael Grimes.
That will be fairly the turnaround for Twitter, which misplaced $270 million within the second quarter of 2022, the final interval through which the corporate needed to report earnings publicly earlier than Musk took the corporate personal.
Although Musk spent a lot of the dialogue touting the deserves of promoting on Twitter, he didn’t present any particulars on revenues from the corporate’s core enterprise, which took a success in current months as quite a few advertisers reevaluated their dealings with Twitter after Musk reduce the corporate’s content material moderation unit and applied a slew of controversial insurance policies.
One factor Musk did share was his final dream for Twitter: To rework it into his X all the things app—a prospect he repeatedly touted on the finish of final yr that might draw from the recognition of Tencent’s WeChat, which permits customers in China to hail a cab, purchase groceries and e-book appointments.
Musk mentioned he believes it’s attainable for “X/Twitter…to turn into the largest monetary establishment on this planet” the place app customers can wire cash to 1 one other “effortlessly with one click on” and earn curiosity.
Key Background
PayPal, the world’s largest on-line cost processor, dealt with $1.4 trillion in transactions final yr. Twitter’s income was down 40% in December, the Wall Road Journal reported final week, the primary perception into the corporate’s financials because the completion of Musk’s $44 billion acquisition of the corporate in October. Musk has ruthlessly reduce prices as Twitter’s CEO, reducing about 75% of the agency’s workforce and even auctioning off workplace gadgets deemed pointless. Musk claims his efforts “saved” Twitter from chapter.
Shocking Reality
Morgan Stanley is one in every of the seven banks who offered Musk with $12.5 billion in debt financing for his Twitter buy. Twitter’s mortgage repayments didn’t come up within the Tuesday dialog.
Forbes Valuation
We estimate Musk to be price $186 billion, making him the second-richest particular person on earth.
Tangent
Musk sparred with a just lately fired Twitter worker in a viral Twitter thread Monday and Tuesday, apparently suggesting the employee’s incapacity made him unable to carry out his function sufficiently.
Additional Studying
Musk Trolls Twitter Worker Asking If He Was Fired And Questions Employee’s Incapacity (Forbes)
