Analysts polled by Refinitiv had expected revenue to rise to $1.32 billion from $1.19 billion a year ago.
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Musk agreed to take over Twitter for $44 billion (about CZK 1.1 trillion) in April this year. However, this month he announced the termination of the agreement, citing the company’s failure to provide him with data regarding fake and spam accounts on his eponymous social network. Twitter subsequently sued Musk. It accused him of breaching the terms of the agreement and asked the court to order the transaction to be completed at the agreed price.
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Fake accounts or a stock crash?
The company said in a report that the decline in sales reflected problems in the advertising industry related to the development of macroeconomic conditions, as well as uncertainty surrounding the takeover of the company by Elon Musk. Musk announced the termination of the agreement the week before last on Friday, which he justified by the fact that the company did not provide him with data regarding fake and spam accounts on his eponymous social network.
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Musk has made no secret from the start that he wants to purge Twitter of fake accounts to make it “a better place for users.” However, he did not disclose any specific plans to address the issue. However, this could be achieved by requiring every Twitter account to be verified, which would basically completely exclude anonymous users from the game.
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The court ruled this week that the trial over the Twitter takeover deal will begin in October and is expected to last five days.
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Twitter calls the reasons Musk gave for withdrawing from the contract an excuse that has no basis. According to the company, the decision to leave the agreement is more related to the drop in the stock market, especially the shares of technology companies. According to the deal, Musk would pay $54.20 for each Twitter share. Twitter’s share price closed at $39.52 in trading on the stock exchange on Thursday.
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