Twitter Releases Second Quarter Financial Results, Says It Spent $33 Million on Elon Musk’s Acquisition Agreement

Twitter has released its financial results for the second quarter of 2022, with Elon Musk prominently featured. In its financial report, the company said it has spent $33 million on its pending acquisition of Musk, which is now the subject of a lawsuit.

The result shows that Twitter’s earnable daily active users (mDAUs) increased 16.6% year-over-year to 237.8 million; however, this lagged slightly behind estimates, which were pegged at 238.08 million.

The company’s second quarter revenue was $1.18 billion, down 5% from the prior quarter and 1% from the same period last year. This, according to Twitter, reflects “headwinds” in the ad industry related to the current economic environment, while also pointing to “uncertainty” caused by Musk’s attempts to pull out of the deal.

What the company says

Twitter presented its expenses for the quarter: “Costs and expenses totaled $1.52 billion, up 31% year-over-year. Costs related to the pending acquisition of Twitter were approximately $33 million in the second quarter. while expenses related to departures were approximately $19 million in the second quarter.” “Given the upcoming acquisition of Twitter by an affiliate of Elon Musk, we will not host an earnings conference call, issue a shareholder letter, or issue financial guidance in conjunction with our Q2 2022 results release,” the company added. ready. While providing an update on the acquisition agreement, the company stated in its financial report: “As announced on April 25, 2022, we entered into a merger agreement under which Twitter agreed to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash. Upon completion of the transaction, Twitter will become a publicly traded company. “On July 8, 2022, representatives of Mr. Musk delivered a notice purporting to terminate the merger agreement. Twitter believes that Mr. Musk’s alleged termination is invalid and unlawful and that the merger agreement remains in effect.On July 12, 2022, Twitter filed a lawsuit against Mr. Musk and certain of its affiliates to force them to specifically fulfill their obligations under the merger agreement and complete the closing in accordance with the terms of the merger agreement July 9, 2022, Twitter’s request for an accelerated trial was granted and the trial is scheduled for October 2022. Approval of the merger agreement by our shareholders is the only remaining approval or regulatory condition to complete the merger under the merger agreement. The exact timing of the merger’s completion, if at all, cannot be predicted as the merger is subject to pending litigation, approval of the merger agreement by our shareholders and the fulfillment of remaining closing conditions.”

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