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Twitter takes aim at Musk deal for poor results | Business News



Twitter missed its expected earnings, partly blamed on disappointing financial results due to Elon Musk’s failed takeover of the social network.

The richest man in the world said he pull out of an agreement this month to buy the tech company for $44 billion (£36.6 billion) and the company is suing him to try to force him to live up to an earlier promise in April to buy it back. .

A trial date is set for October, with a £830m termination bill for Mr Musk.

Twitter are pushing the case to court in September because it thinks the ongoing dispute is hurting their business.

In its Q2 financial results, Twitter said that “uncertainty” around the deal led to an unexpected drop in revenue after shaking advertisers and causing confusion and anxiety. for employee.

The social network also blamed advertising industry obstacles for the slowdown.

The company said it spent £27 million on the takeover attempt, during a period when Twitter reported a net loss of £224 million, lower than expected.

Analysts have expected revenue of $1.32 billion, representing 10.5% year-over-year growth.

Instead, Twitter’s revenue fell 1%, representing the company’s worst revenue failure ever, with a result that was 11% below estimates, according to data from Refinitiv.

Meanwhile, Twitter’s daily user count grew in Q2 to 237 million.

Mr. Musk, the boss of Tesla and SpaceX, has pledged to pay $54.20 a share for Twitter, but told the company in July that he wanted to withdraw the deal.

“It’s vandalism,” said William Savitt, a lawyer for the social media firm. “He’s doing his best to take down Twitter.”

The tycoon claimed the company did not provide him with enough information regarding the number of fake Twitter accounts – spam bots.

And he said they violated their obligations by firing top managers and laying off a significant number of workers.

Musk’s team hopes to have more information about the number of bots that will come up during the trial court discovery, when both sides must hand over evidence.

Twitter argued that Musk was trying to back out because he agreed to pay 38% of Twitter’s share price just before the stock market fell.

And shares of electric car maker Tesla, which holds most of his personal fortune, have lost more than $100 billion in value.



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