From becoming Twitter¡¯s largest shareholder, proposing a $44 billion takeover to threatening to cancel the deal and then actually doing so, a lot has happened in the Elon Musk-Twitter saga since April 2022.
And now, Twitter¡¯s recent revelation of its April-June quarter¡¯s financial results states that costs related to the pending acquisition of Twitter were approximately $33 million.??
So, between April and June 2022,Twitter spent $33 million (?27 million) on Tesla CEO Elon Musk's proposed deal to buy the firm.
Twitter also mentioned that its number of monthly daily users had risen to about 237 million. The company¡¯s net loss was $270 million, whereas net income stood at $66 million.
Twitter¡¯s total costs and expenses in Q2 totalled?to $1.52 billion, which is an increase of 31% year-over-year.
As per BBC report, there is a $1billion termination fee potentially at stake if Elon Musk backs out from the takeover.
Twitter¡¯s financial report separately mentioned about the Elon Musk deal. It stated this:?
As announced on April 25, 2022, we entered into a merger agreement, pursuant to which Twitter agreed to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash. Upon completion of the transaction, Twitter will become a privately held company. 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. 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.?
The report also mentioned that on July 19, 2022, Twitter¡¯s request for an expedited trial was granted, and the trial is being scheduled for October 2022. Adoption of the merger agreement by our stockholders is the only remaining approval or regulatory condition to completing the merger under the merger agreement. The exact timing of completion of the merger, if at all, cannot be predicted because the merger is subject to ongoing litigation, adoption of the merger agreement by our stockholders and the satisfaction of the remaining closing conditions.
Also Read:?Twitter Board Unanimously Recommends Shareholders To Approve $44 Billion Sale To Elon Musk
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