Twitter said it faced $33 million in costs during the quarter related to the acquisition. In addition to Musk’s deal, the company cited “advertising industry headwinds associated with the macroenvironment.”
TWITTER MISSES ON EARNINGS, CITES ELON MUSK ACQUISITION ‘UNCERTAINTY’ AS QUARTERLY REVENUE HEADWIND
Earlier this month, Musk announced he would be terminating the deal, claiming Twitter is “in material breach of multiple provisions” of the agreement and “appears to have made false and misleading representations” when it accepted Musk’s acquisition offer on April 25. Musk has disputed Twitter’s internal estimates that spam and fake accounts make up less than 5% of its users.
In response to Musk and his team’s accusations, Twitter called the “purported termination” of the deal “invalid and wrongful” and a “repudiation of their obligations under the agreement.” Twitter is also suing Musk, accusing him of refusing to “honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”
A trial in the legal battle is slated for October.
www.foxbusiness.com/business-leaders/musk-reacts-twitter-blame-q2-revenue-miss?intcmp=tw_fbn