On Friday, Twitter reported disappointing results, which the social network attributed to “headwinds,” including uncertainty surrounding Elon Musk’s buyout offer.
The firm is embroiled in a legal battle with Tesla’s mercurial boss over his attempt to back out of a $44 billion deal to buy the platform, leaving the company in limbo.
Twitter fell short of expectations with $1.18 billion in revenue due to “headwinds in the advertising industry…as well as uncertainty surrounding the upcoming acquisition of Twitter affiliate Elon Musk,” the firm said.
The news comes days after Twitter prevailed in its battle with Musk, with a judge agreeing to a fast track trial over whether to force the billionaire to complete the buyout.
Musk claims the platform misled the number of fake accounts on the platform, but the social media platform counters that he is simply trying to get out of the deal.
Musk’s lawyers pushed for a February 2023 date, but a court in the eastern U.S. state of Delaware took heed of the platform’s quest for speed tormented by uncertainty and set an early October date.
– Loss of money. Billions of dollars are at stake, but so is the future of Twitter, which Musk says should allow any legal speech – an absolutist stance that has raised fears the network could be used to incite violence.
Twitter is left with worried employees, wary advertisers, and an indecisive management that limps around to see how the saga ends.
In early May, at an annual marketing event where companies negotiate big ad deals, Twitter “couldn’t give advertisers any clarity or confidence” that it would continue to be a safe showcase for them, said Angelo Carusone, president of Media Watch Group. . Has the meaning.
“They didn’t even come close to what they usually sell at this event. And since then, he has obviously been lethargic,” he told AFP earlier.
The San Francisco-based social network can’t afford to lose customers.
Unlike big companies like Google and parent company Facebook Meta, which dominate online advertising and generate billions in profits, Twitter lost hundreds of millions of dollars in 2020 and 2021.
The group will generate less than one percent of global ad revenue in 2022, compared to 12.5 percent for Facebook, 9 percent for Instagram and nearly two percent for booming upstart TikTok, according to eMarketer.
On top of that, Twitter’s user base is unlikely to grow and could even shrink in the United States, analysts say.
© Agence France-Presse