Twitter Blames Elon Musk the loss of $270m. Twitter claims that if Elon Musk had not been involved in talks to buy the company, it would have made more money in the last few months. This is what the company claims in its second-quarter earnings report, which cites Musk as a factor in a year-over-year decrease in revenue to $1.18 billion from $1.19 billion. The second-quarter earnings report was released this morning.
Twitter is losing money for other reasons as well. The company also cites ad industry issues, Snap’s previous poor performance, and the general economic environment. The “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk” is the most Twitter-specific issue on the list.
Musk agreed to buy Twitter in April, and in recent weeks, he has developed cold feet and attempted to back out of the deal.After Musk filed with the Securities and Exchange Commission earlier this month in an attempt to legally terminate the contract, the two parties will now go to court in October.
Twitter wants Musk to go ahead with the acquisition, which would cost more than the current stock price. For the time being, however, the disorganized acquisition appears to be making it more difficult for Twitter to sell advertisements.Ad Age recently reported that the company’s ad sales were in “disarray,” while Bloomberg previously stated that Twitter was doing its best to assuage advertisers’ concerns about how Musk would change the platform.
Aside from revenue, Twitter refuses to give Musk credit for one thing, and that is its user growth.
The service reported more than 237 million users per day, up from 229 million users in the previous quarter.
Obviously, “ongoing product improvements” were to blame.
