The purchase of Twitter by Elon Musk continues to generate many doubts among users. Now, Elon Musk has reportedly suggested that websites should pay Twitter to embed tweets to increase the social networking service’s revenue.
According to Reuters, one of Musk’s ideas has been to seek new forms of monetization, including charging a percentage for each quoted or embedded tweet from third-party pages, organizations or verified accounts.
Citing three people familiar with the matter, Reuters stated that Musk, during his presentation to the banks, pointed to the fact that Twitter’s gross margins were significantly lower than those of other social media platforms such as Facebook and Pinterest. Musk reportedly stressed that this meant there was plenty of room to run Twitter more profitably.
Musk had to convince the banks that Twitter was producing enough cash flow to pay off the debt he was seeking. In the end, he took out $13 billion in secured loans against Twitter and a $12.5 billion margin loan tied to his shares in Tesla Inc.
In now-deleted tweets, Musk suggested features for Twitter’s Blue subscription service, including a lower price and a ban on advertising.
It was also reported that the billionaire would also cut executive and board salaries to cut costs.
Such a move would prove controversial after former Twitter boss Jack Dorsey praised Parag Agrawal, the current CEO, saying both Musk and Agrawal were aligned on the platform’s goals.
The report says Mask’s speech to the banks was more about his vision than his firm commitment, and the exact cost reduction he will seek when he buys Twitter is unknown. It is reported that the proposal, which he told in detail to the banks, has no depth.
Musk tweeted about reducing the pay of Twitter’s board directors, which he claimed could save the company $3 million. According to corporate documents, Twitter’s stock-based compensation for the fiscal year ending December 31, 2021 was $630 million, an increase of 33% over 2020.
Reuters sources noted that Musk was, after all, easy on the details. Tesla’s CEO was reportedly unclear, for example, about the exact cost-cutting measures he would take to make the company more economical. However, one of the sources of the publication also noted that Musk has appointed a new CEO for Twitter. The identity of the person has not yet been disclosed.
Earlier reports said Musk cited job cuts on Twitter as part of his presentation to banks. However, it is reported that Musk will not decide to cut jobs on Twitter until he can become a full owner of the social network. Tesla’s CEO is expected to complete the acquisition of Twitter later this year.