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Twitter reports financial loss, blames Elon Musk

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Twitter has sued Elon Musk for dropping his offer to buy the company.

Washington:

Twitter reported disappointing results on Friday, a miss the social network attributed to “headwinds,” including uncertainty related to Elon Musk’s buyout bid.

Firm Mercurial is locked in a legal battle with Tesla boss over its attempt to walk away from its $44 billion deal to buy the platform, leaving the company in limbo.

Twitter missed expectations with revenue of $1.18 billion, due to “ad industry headwinds … as well as uncertainty related to the pending acquisition of Twitter by an associate of Elon Musk,” the firm reported.

The news comes days after Twitter won its battle with Musk, when a judge agreed to a fast-track trial on whether to force the billionaire to complete the purchase.

Musk argues that the platform misled on the number of fake accounts on the platform, but the social media platform counters that it is trying to get out of the deal.

Musk’s lawyers had pushed for a February 2023 date, but the court in the eastern US state of Delaware heeded the uncertainty-laden stage’s desire for motion and began October.

– lose money –

Billions of dollars are at stake, but so is the future of Twitter, which Musk has said should allow any legal speech — an autocratic position that has raised fears the network could be used to incite violence. .

Twitter is left with worried employees, wary advertisers and hamstrung management as it waits to learn how the saga will end.

In early May, at an annual marketing event where companies negotiate large advertising deals, Twitter was “not able to give advertisers any clarity or confidence” that it would remain a safe exposure for them, said the president of watchdog group Media Matters. Angelo Carusone said.

“They didn’t go anywhere close to what they usually sell at that event. And it’s obviously sluggish since then,” he previously told AFP.

The San Francisco-based social network can’t afford to lose customers.

Unlike big fish like Google and Facebook parent Meta, which dominate online advertising and generate billions in profits, Twitter lost hundreds of millions of dollars in 2020 and 2021.

According to eMarketer, the group will capture less than one percent of global advertising revenue in 2022, compared to 12.5 percent for Facebook, 9 percent for Instagram and about two percent for fast-growing TikTok.

On top of this, Twitter’s user base is not expected to grow and may even shrink in the United States, analysts have noted.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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