Twitter Sees Sharp Revenue Decline And Now Looking For Someone Else To Blame

Twitter reported a year-over-year quarterly decline on Friday and is blaming Elon Musk for their financial troubles — whose bid to buy the company for $44 billion fell through earlier this month, due to claims of various fake bot accounts.

“Q2 revenue totaled $1.18 billion, a decrease of 1% year-over-year, or an increase of 2% on a constant currency basis,” Twitter announced in their earnings report for Q2 2022. “Reflecting advertising industry headwinds associated with the macroenvironment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk.”

Analysts were expecting Twitter to report $1.34 billion in earnings, according to the New York Post, an expectation that obviously did not materialize. How much Elon is to blame for this, is something of a question.

The Tesla Founder and Space X CEO had reneged on his bid to buy the company after citing a multitude of concerns.

“Musk, the world’s richest man, tried to back out of the deal already, alleging that Twitter failed to reveal the true number of bot accounts on the platform.” the DC Enquirer reported. “He also accused the company of breaching the agreement by firing high-up managers and large amounts of employees.”

TWITTER TAKING MUSK TO SPECIALTY COURT OVER $44 BILLION BUYOUT DISPUTE

Meanwhile, Twitter released a statement describing the legal actions it would take against Musk to force him into the deal, writing that it would be a matter of him meeting his “obligations.”

“On July 8, 2022, representatives of Mr. Musk delivered a notice purporting to terminate the merger agreement. Twitter believes that Mr. Musk’s purported termination is invalid and wrongful, and the merger agreement remains in effect.” the Company announced.

“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,” it added.

The case is headed for the Delaware Court of Chancery which, “is known for taking up ‘high-stakes’ business cases,” as the DC Enquirer reported earlier this week.

There has been a wide amount of speculation as to what the results will be.  All types of scenarios — from a complete Twitter victory to Musk paying a paltry $1 billion breakup fee if he wins the suit — have all been offered up.

The world now waits eagerly, on the final result.