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How long will Elon Musk get back the money he spent buying Twitter?

  • April 27, 2022
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Elon Musk, the CEO of Tesla and SpaceX companies, the off-the-books social media name, finally detonated the expected bomb last night. The richest person in the world, who

Elon Musk, the CEO of Tesla and SpaceX companies, the off-the-books social media name, finally detonated the expected bomb last night. The richest person in the world, who has been trying to buy all of Twitter since the beginning of April, has managed to achieve his goal and He bought Twitter for about $44 billion.

The takeover of one of the world’s largest social media platforms by Elon Musk naturally sparked several discussions around the world. While issues such as Twitter’s role in the international arena, Elon Musk’s personality and his 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 earn with just twitter revenue 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 uses the same business model as Google and Facebook. Under this business model, all user platform totally free while you can use the platform as: ads as revenue is happening. Twitter’s ad revenue doesn’t even come close to Facebook and Google.

On the other hand, according to the earnings reports shared by Twitter, the company has managed to significantly increase its revenue every year. your twitter Revenue and net profit in the past 10 years it was like this:

  • 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 income)
  • 2018 – $3 Billion ($2.07 Billion Net Income)
  • 2019 – $3.4 billion ($2.32 billion net profit)
  • 2020 – $3.7 Billion ($2.35 Billion Net Income)
  • 2021 – $5.07 billion ($3.28 billion net income)

Let’s go to the bill:

It is of course very difficult to predict Twitter’s annual profit margin in the coming period, especially now that Elon Musk takes over the company. Therefore, to make an estimate in this account, Twitter’s average annual income growth We assume the most recent annual turnover announced by Twitter. To make the calculation more current, we have left behind the enormous rise of Twitter in its early years. last 5 years (2017 – 2021) we will consider it.

  • Average annual growth of Twitter’s revenue over the past 5 years: about 20%

To calculate Elon Musk’s earnings from Twitter relative to earnings, we’re basing ourselves on earnings announced by Twitter in 2021. Like this,

  • If Twitter manages to increase its profits by 20% every year in the 6th year The total profit it will make, profit from 2022 $42.34 billion it will be. By the seventh year, the total profit will reach $54 billion and the money paid for the company will pay off and even turn into a $10 billion profit.

This will of course be possible as Twitter continues to increase its win rate regularly for 7 years in its current setup.

Source: Web Tekno

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