To buy Twitter for US$ 44 billion (almost R$ 214 billion), South African businessman Elon Musk had to take on a debt of up to US$ 1 billion (around R$ 4.8 billion) a year. with banks, backed by Tesla shares.
To pay for these loans, the billionaire will have to find a way to profit from the social network. Recently, the owner of Tesla (an electric car company) and Space X (a spacecraft company) had several meetings with creditor bankers and presented different proposals for increasing Twitter revenues.
These are some of them:
Before making the purchase of Twitter official, the businessman threw some ideas into the air through tweets that have since been deleted. Among them, he suggested a subscription version of the social network, which in return would offer an ad-free experience for paying users.
But reducing the volume of ads on the social network can be a problem: Twitter has a financial income of $1.2 billion per quarter, of which $1.1 billion comes from advertising.
The freedom of expression defended by the businessman also causes concern among advertisers, who fear how it could affect the image of their brand.
Musk will have to go to great lengths to prove to marketers that there is no problem with his new administration. Or, reduce the company’s significant dependence on profit from advertisements.
The firing of employees is also in Musk’s plans, according to a report in the US newspaper Washington Post. However, after the acquisition, Parag Agrawal, the current CEO of Twitter, said that there are no plans for staff cuts so far.
Despite the claim, even Agrawal’s position, taken at the end of November last year, is not guaranteed at the company, because Musk may want to change the company’s direction.
Paid influencers and tweets
Paying influencers to generate content has also been considered by Musk, as do TikTok and Instagram. However, Twitter has already tested this and had problems such as irregular payments and unclear rules, such as defining the creators qualified for this work.
What exists today on Twitter is the “Super Follow” program, in which influencers can provide exclusive content for paying followers.
There is also the possibility of charging for those tweets embedded and cited on third-party sites. That is, contextualizing a story with tweets in a publication on news sites, for example, can be expensive for media companies, which could start a discussion about the ownership of posts on the social network and possible financial compensation for the authors. .
But even this restriction could be easily circumvented by the vehicles: it would be enough to take a photo or a screenshot of the tweet that you want to embed.