Twitter posted a loss in the June quarter and lower-than-expected revenues on Wall Street, blaming the backlash from the advertising industry and uncertainty over the pending acquisition of Twitter by an Elon Musk subsidiary.
It recorded a loss of $ 270 million from a profit of $ 66 million the year before. Revenue of $ 1.18 billion was down 1% from the previous year (or up 2% at constant exchange rates, excluding currency fluctuations).
Shares of Twitter fell 1.7%. The report comes after Snap, whose shares fell following disappointing quarterly results yesterday afternoon, raised important red flags for the digital ad business amid high inflation, rising interest rates and the war in Europe. .
As Snap explained on Wednesday, advertising budgets are among the costs companies are under pressure to cut. Their share decreased by 33%. Wall Street is gearing up for a series of tech gains next week.
Twitter reported 237.8 million MAUs, or monetized daily active users, up 17% from last year’s quarter but less than expected, all as the company prepares to step into the ring with Elon Musk.
June quarter data comes two days after a judge suspended October for five days in a lawsuit filed by the social media platform against the billionaire founder of Tesla, who took a large stake in Twitter and agreed to buy it last year. spring, but was unilaterally withdrawn. . deal earlier this month.
“Given the pending acquisition of Twitter by an Elon Musk affiliate, we will not hold an earnings conference call, issue a letter to shareholders or provide financial guidance in conjunction with the second quarter 2022 earnings release,” Twitter also claimed. color. Not be included the background of the dispute.
“As announced on April 25, 2022, we entered into a merger agreement under which Twitter agreed to acquire an entity owned by Elon Musk for $ 54.20 per share in cash. After completion
In the transaction, Twitter will become a private company.
On July 8, 2022, the representatives of Mr. Musk have issued a notice of termination of the merger agreement. Twitter believes Mr. Musk’s alleged termination is illegal and unfair and the merger agreement remains in effect.
On July 12, 2022, Twitter initiated legal proceedings against Mr. Musk and some of his affiliates to specifically enforce their obligations under the merger agreement and complete the closure.
under the merger agreement.
On July 19, 2022, Twitter requested an expedited process
He was hospitalized and the trial is scheduled for October 2022.
The approval of the merger agreement by our shareholders is the only remaining approval or condition precedent for the completion of the merger under the merger agreement. The exact time of completion of the merger, in any case, cannot be determined in advance as the merger is subject to ongoing litigation, our adoption of the merger agreement. shareholders and compliance with the remaining closing conditions.
The court’s decision in the October trial – the company had asked for September – was a victory. The Musk camp was expecting a court referral from the Delaware chancellery until February. The judge agreed with Twitter that prolonged uncertainty would cause irreparable damage to the company’s business.
Twitter’s operating loss was $ 344 million, which represents a 29% decrease in operating margin, compared to operating income of $ 30 million, or an operating margin of 3% in the same period last year.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
