How Many Years Will Elon Musk Pay For Twitter’s Money?

Elon Musk, the CEO of Tesla and SpaceX companies, the name of social media that does not fall on the agenda, finally detonated the expected bomb last night. The richest person in the world, who has been trying to buy the whole of Twitter since the beginning of April, has succeeded in reaching his goal and He bought Twitter for about $44 billion.

The acquisition of one of the world’s largest social media platforms by Elon Musk, of course, brought different discussions all over the world. While issues such as Twitter’s role in the international arena, Elon Musk’s personality and its reflection on Twitter, how Twitter will change, we continue to discuss Musk’s role. the money he paid to Twitter, how much time you can make with Twitter earnings alone we followed.

How does Twitter make money? How much has he earned recently?

Before proceeding to the calculation, it is useful to briefly explain how Twitter makes money. Twitter adopts the same business model as Google and Facebook. Within the scope of this business model, all users platform completely free while you can use the platform as ads if revenue is happening. Twitter’s ad revenue is not even close to Facebook and Google.

On the other hand, according to the earnings reports shared by Twitter, the company has managed to increase its income significantly every year. your twitter Income and net profit in the last 10 years it was as follows:

• 2012 – $0.3 billion ($188 million net profit)
• 2013 – $0.6 billion (net profit of $398 million)
• 2014 – $1.4 billion (net profit of $957 million)
• 2015 – $2.2 billion (net profit of $1.4 billion)
• 2016 – $2.5 billion (net profit of $1.59 billion)
• 2017 – $2.4 billion ($1.58 billion net profit)
• 2018 – $3 billion ($2.07 billion net profit)
• 2019 – $3.4 billion ($2.32 billion net profit)
• 2020 – $3.7 billion ($2.35 billion net profit)
• 2021 – $5.07 billion ($3.28 billion net profit)

Let’s get to the account:

Of course, it is very difficult to predict the annual profit rate of Twitter in the coming period, especially with Elon Musk taking over the company. Therefore, in order to make an estimation in this account, Twitter’s average growth rate of annual income We will take the last annual revenue announced by Twitter as a basis. In order for the calculation to be more up-to-date, we left behind the huge rises of Twitter in its early years. last 5 years (2017 – 2021) we will consider.

• Average annual growth rate of Twitter’s revenues over the last 5 years: approximately 20%

In order to calculate Elon Musk’s income from Twitter over profit, we will base the amount of profit announced by Twitter in 2021. Like this,

• If Twitter manages to increase its profits by 20% every year in 14 years total profit, including 2021 profit ($3.28 billion) 50.5 billion dollars it will be.

In other words, Elon Musk will leave Twitter if and only if the company’s revenues continue at the current level. Will start making profit in 15th year. Of course, this will only happen if Twitter continues to increase its profit rate regularly for 15 years in its current setup. At the end of the 14th year, the money he earned is still 42 billion level, that is, below the money he bought.