BUSINESS

Twitter Cries Foul

Twitter is claiming a spend of $33m on Elon Musk’s proposed deal to buy the firm between April and June 2022 has set back the company.

It noted that its number of monthly daily users had risen to 237m, albeit it suffered a net loss of $270m, which was worse than expected.

Musk had earlier announced he would be terminating the deal, claiming Twitter is “in material breach of multiple provisions” of the agreement and “appears to have made false and misleading representations” when it accepted Musk’s acquisition offer on April 25.

Musk has also disputed Twitter’s internal estimates that spam and fake accounts make up less than 5% of its users.

Twitter, however, called the “purported termination” of the deal “invalid and wrongful,” and a “repudiation of their obligations under the agreement.”

Twitter is suing Musk, accusing him of refusing to “honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests.”

There is a $1bn termination fee potentially at stake.

Twitter declined to discuss its latest financial results, citing the “pending acquisition” as the reason.

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Readers Bureau, Contributor

Edited by Jesus Chan

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