September 21, 2023

Twitter cancels investor conference as Elon Musk pulls out of deal

Twitter cancels investor conference as Elon Musk pulls out of deal

Twitter released its financial results for the second quarter of 2022, but withdrew from the teleconference with investors. The board cited a "pending deal" with Elon Musk.

“Given the pending acquisition of Twitteraffiliated with Elon Musk, we will not be holding a profit call, issuing a shareholder letter, or providing financial advice […],” the press release reads.

According to the results of the II quarter, the base of active users of the social network grew by 16.6%, up to 237 million people. At the same time, the company's revenue decreased by 1%, to $1.18 billion.

In April 2022, Elon Musk acquired a 9.2% stake in Twitter, and later offered to buy the company for $54.2 per share. The management of the social network agreed to the terms.

The billionaire explained the initiative with a desire to create "an inclusive arena for freedom of speech."

However, in May, Musk put the purchase process on hold.after reports of overestimation of the audience of the social network. After that, Twitter shareholders sued because of the "chaotic process" of the takeover of the company, accusing the head of Tesla of manipulating the market.

In July, Musk announced the termination of the agreement to acquire the social network.

Recall that in the same month, Twitter filed a lawsuit against the head of Tesla because of his exit from the deal. The platform intends to force the entrepreneur to fulfill obligations and complete the purchase.

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