NewsNational

Actions

Twitter reports $270 million loss amid turmoil over Musk buyout

Twitter Privacy Fine
Posted
and last updated

Twitter reported a $270 million net loss in the second quarter of 2022 as the company faced uncertainty over its future ownership.

The report comes weeks after Elon Musk announced he was backing out of buying the social media network. Twitter has since said it is suing Musk in an attempt to follow through with the buyout.

“Twitter believes that Mr. Musk’s purported termination is invalid and wrongful, and the merger agreement remains in effect,” Twitter said on Friday. “On July 12, 2022, Twitter commenced litigation against Mr. Musk and certain of his affiliates to cause them to specifically perform their obligations under the merger agreement and consummate the closing in accordance with the terms of the merger agreement.”

In a Friday report, Twitter said it spent $33 million relating to the merger.

The social media network grew 16.6% compared to the same time last year, growing to 237.8 million daily active users.

Musk said he backed out of the sale because Twitter could not verify the percentage of users who are false or spam accounts. Twitter said Friday an internal audit found that less than 5% of accounts are comprised of false or spam accounts. Twitter, however, said its figure of spam accounts could be underrepresented and it is looking for ways to approve its accounting.