Twitter Spends $33million To Fight Elon Musk
TECHDIGEST- In Q2 of this year, Twitter spent $33 million on costs associated with Elon Musk’s proposed acquisition. These expenses are anticipated to soar as Musk and Twitter square off in court. Musk is attempting to back out of his offer to purchase Twitter for $44 billion.Twitter is already paying a high price for its dispute with Elon Musk.
Musk declared on July 8 that he wants to back out of his April $44 billion agreement to purchase Twitter.
Readalso:Twitter, Musk get October date for $44b deal trial
In its Q2 earnings report released on Friday, Twitter claimed that expenses for its “pending acquisition” by Musk had already totaled $33 million.
Additionally, Twitter partially attributed a 1% decline in revenue to “uncertainty” brought on by Musk’s tumultuous takeover.
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Twitter’s expenses will keep rising as it prepares for a legal conflict with Musk. Musk is being sued by Twitter with the assistance of the renowned corporate law firm Wachtell, Lipton, Rosen & Katz LLP in an effort to get him to uphold the terms of their original agreement and purchase the business.
Musk claims that Twitter misled him about the amount of phony accounts using its network. Twitter reports that about 5% of accounts are fraudulent in its regulatory filings, but Musk’s attorneys claim that the Tesla billionaires’ investigation reveals that the percentage is “wildly higher than 5%.”
The lawyers for Twitter claimed that Musk’s pretended worry over bogus accounts is a ruse and that he only wants out of the agreement since the value of his Tesla shares has plummeted.
Twitter was given an accelerated trial to reduce the “business risk” posed to the firm, which gave the company an early victory in its lawsuit against Musk.
