- Elon Musk announced that he will not buy Twitter for 44 billion dollars as he had announced in April 2022.
- He had even already signed an acquisition agreement, but the data on fake accounts would have led the tycoon to regret it.
- Twitter will sue Musk and wants to force him to buy the social network. They assure that the trial can last for years.
In the latest quarter reported by Twitter, the number of global monetizable daily active users (mDAUs) was 228 million users.
That’s an interesting increase from the 216 million mDAU the social network posted in the previous quarter.
In a broader comparison, there was an increase in mDAU of more than 15 percent from the first quarter of 2021.
On the other hand, Twitter generated worldwide revenue of more than 5 billion dollars in 2021.
But that information published by the company founded by Jack Dorsey was not enough to convince Elon Musk to comply with the purchase agreement he signed in April: the tycoon decided that he is not going to take over the social network.
Among the arguments, the South African says that Twitter is lying about the number of fake accounts and bots. He assures that the social network cannot control this variable and that is why it is not convenient for him.
What will happen to Twitter
But Twitter is not going to sit idly by: hired an American law firm to sue Musk for breaching the takeover promise.
It is not just any law firm, it is the famous “Wachtell, Lipton, Rosen & Katz LLP”for many, the most effective in the world for this kind of lawsuits between corporations.
Twitter wants, according to Reuters, to force Musk to finalize the purchase for the promised $44 billion.
The tycoon withdrew the acquisition agreement on Friday, July 8, assuring that the cause was the issue of fake accounts, something that inflamed the anger of Bret Taylor, president of Twitter, who has promised an “immediate legal response.”
Taylor’s idea is to file the lawsuit this week in Delaware.
Twitter actions this Monday, July 11
Elon Musk’s decision ended up dealing a death blow to Twitter shares, which fell 5 percent in after-hours trading on Friday and a further 4 percent over the weekend.
All analysts are looking at what will happen this Monday when Wall Street opens, but the worst is feared.
Remember that Twitter stock was already down 19 percent since Musk made the offer.
Twitter, drowned and without advertising
90 percent of Twitter’s revenue depends on advertising revenue, but the ad market is convulsed by inflation and the war in Ukraine, which hampers its business.
According to Jason Goldman, an early Twitter executive who was with the company until 2010, told the Wall Street Journal that those in charge “must find a credible way to move the company forward.”
In May, Agrawal said the network had paused hiring employees and was trying to cut costs. Twitter also confirmed last week that he had fired a third of his recruiting team.
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