Elon Musk reveals plans to monetise tweets and cut salaries as part of his pitch to bank lenders

As per a new development in the Twitter-Elon Musk story, the Tesla CEO has reportedly informed the banks sponsoring the takeover bid of his plans to reduce executive and board member salaries in order to save money.

Musk also mentioned a plan to monetise tweets, as per Reuters.

He made these pitches to the lenders as he tries to secure a debt days after submitting a bit to Twitter on the 14th of April.

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Musk had to persuade the banks that Twitter's cash flow was sufficient to service the loan he was seeking. In the end, he was able to acquire $13 billion in loans secured against Twitter, as well as a $12.5 billion margin loan secured against his Tesla equity. He promised to pay the balance of the payment with his own money.

Earlier too Musk had spoken about his plan to eliminate the salaries of Twitter board directors, which in his opinion can save up to $3 million in cost savings.

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As per Reuters anonymous source, Musk also pointed out Twitter's gross margin which is much lower than Meta's Facebook and Pinterest, adding that this leaves plenty of space to run the company cost-efficiently.

Bloomberg had earlier reported that Musk's pitch to the banks also included job cuts, although he isn't expected to make a decision on that until he assumes ownership of the firm.

His plans for monetisation include developing features to grow business revenue, by making use of viral tweets. Among his ideas is charging a fee for third-party websites to quote or embed a tweet by verified accounts.

In his earlier tweets, he had suggested a raft of changes including slashing Twitter blue premium's subscription service. In another tweet he had deleted, he suggested reducing Twitter's dependence on advertising for revenue.

(With inputs from agencies)