Elon Musk wants to turn Twitter into a $250 billion payments corporation by integrating it into customers’ finances.
According to reports, Elon Musk has described his plans for Twitter, which include a $250 billion payments firm. According to The Wall Street Journal (WSJ), Musk recently informed his staff that he expects Twitter’s present valuation of $20 billion to increase to more than 10 times that amount as a result of plans to integrate the social media app heavily into users’ financial lives.
The story highlighted that while a $250 billion Twitter would exceed PayPal’s estimated valuation of approximately $85 billion, these intentions mirror Musk’s beginnings at the business that would one day become PayPal (and put it in the same neighborhood as JPMorgan Chase and Bank of America).
“I think it’s possible to become the biggest financial institution in the world,”Elon Musk at a Morgan Stanley conference last month.
Twitter – Elon Musk
PYMNTS requested a response from Twitter on Sunday (April 2). The business responded with a “poop emoji,” as Musk had promised it would start doing earlier this month.
According to the WSJ story, Musk discussed his intention to diversify the ailing social media platform’s faltering ad revenue, which had previously made up the majority of sales, during the conference.
Musk said in his message to employees that he sees a “clear, but tough road” to reaching a net worth of more than $250 billion in the future. He also announced the establishment of an employee stock plan.
According to reports, Twitter started requesting regulatory permits in the US earlier this year and is also creating software to integrate payment features into its site.
“Musk is in a tight place as advertisers have abandoned the platform in droves since his takeover, citing concerns over content moderation and associated issues,” PYMNTS said at the time. The platform lost close to half of its advertising commitments by November, despite annual ad sales of $5 billion.
Musk tweeted last year, just before the deal to buy Twitter was finalized, that the acquisition was “an accelerant to inventing X, the everything app.” As said at the time, Musk needs to find a means to either supersize the company or incorporate it into a broader “X” super app network for the acquisition of Twitter to go as planned.
“Twitter probably accelerates X by 3 to 5 years, but I could be wrong,” Musk has said.
According to a November PYMNTS story, Twitter’s town-square-style platform has failed to make money outside of advertising. WeChat and other mega apps use in-platform small programs to connect every element of daily life.