Friday Jul 22 2022

Twitter announces $270m quarterly loss amidst battle with Elon Musk

A representational image of Twitter logo. — Reuters/File
A representational image of Twitter logo. — Reuters/File

Twitter announced on Friday that it lost $270 million in revenue, all the while battling with Billionaire and Tesla Chief Executive Officer Elon Musk on his buyout deal, reported Forbes.

Twitter announced that it lost around $1.18 billion in revenue expectations due to "advertising industry headwinds... as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”

The popular social media platform is currently in a legal battle with Musk over his effort to walk away from his $44 billion offer to buy Twitter.

Just a few days earlier, Twitter celebrated a victory against Musk when a judge agreed to a fast-track trial on whether Musk should be forced to complete the buyout.

Musk argues that Twitter misled numerous fake accounts. On the other hand, Twitter claims Musk is trying to escape the deal.

He was hoping for a February 2023 date but the trial is set to start this coming October.

The billionaire is known for his controversial statements and, among them, he said that in order to secure Twitter’s future, they should allow any legal speech on the platform. However, many are concerned this could lead to racism and promote violence.

Analysts claim that Twitter's user base stunted growth and may even possibly decrease in the United States.