Twitter reveals huge losses in negotiations with Elon Musk

Twitter spent $33 million on Elon Musk’s proposed purchase of the company, between April and June 2022.

The company also said its daily active users rose to 237 million – but posted a net loss of $270 million, which was worse than expected.

Since then, Mr Musk has changed his mind about the purchase, and a court hearing has been scheduled for October because Twitter wants the sale to go through.

There is potentially a $1 billion early termination fee at stake (possibly paid by Musk).

Twitter declined to discuss its latest financial results, citing the reason for this as a “pending acquisition deal.”

The report covers the period from April to June 2022.

Twitter has maintained its position on the amount of spam and fake accounts on the platform – which is the reason Elon Musk gave to terminate the deal.

“We conducted an internal review of a sample of accounts, and estimate that the average for fake or spam accounts during the second quarter of 2022 represented less than 5 per cent of [monthly active users] during the quarter,” Twitter said, though it added that this The number is an estimate.

In 2021, Twitter’s revenue was $5 billion, but in the past 12 months, its share price has fallen by 45 per cent.

Forrester analyst Mike Proulx said Twitter was in a state of confusion.

“Twitter now has an acquirer who doesn’t want that anymore, a CEO and board that they want to get rid of, and an employee base stuck in the middle of it all,” he said.

“The real victim of all this drama is Twitter itself.”

By safiremedia

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