July 23, 2022
Twitter recently released their second quarterly earnings report for 2022. The social media giant reported a revenue loss of $1.18 billion with a net loss of $270 million. Twitter cited the cause of these decreases were due to the failed merger stemming from Musk's July 8th letter cancelling the acquisition.
Operating expenses jumped to $1.52 billion, a 31% increase, including $33 million spent on the yet to be finalized buyout. Subscription revenue also fell by 20% to $101 million.
In April 2022 Elon Musk announced that he was buying Twitter to bring forth a social media platform that truly provided free speech for all. The company held a shareholders' vote on April 25, 2022 and approved the acquisition for $44 billion ($54.20 per share).
Musk subsequently backtracked on the agreement and no longer wishes to privately own the company, leaving shareholders in a state of uncertainty. On July 12, 2022 Twitter pursued litigation to force the Tesla owner to perform his obligations outlined in the agreement. Twitter also addressed the failed buyout in the report stating that it "believes that Mr. Musk’s purported termination is invalid and wrongful, and the merger agreement remains in effect." A trial has been set for October 2022.
The company did not host an earnings call or issue a letter, nor was it able to provide any financial guidance due to "the pending acquisition of Twitter by an affiliate of Elon Musk".
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