It has been quite an uphill ride for Twitter over the last few months as Elon Musk’s exciting attempt to buy the company continues.
The tumult started in May when Elon Musk was suggested by the Federal Trade Commission to be investigating a possible deal. Project Veritas also conducted an undercover investigation on Twitter, revealing the fears of tech company employees regarding Musk’s potential takeover.
In June we wrote about Twitter’s breaking of progressive hearts and reengaging Musk in the deal. This was after the apparent slowdown in progress. Musk’s acquisition of ownership was officially approved by the board in the middle of June.
As many of our readers are aware, Musk announced earlier in July that he had cancelled his contract negotiations. In the wake of that move, about 10 days ago, Twitter filed suit against the Tesla founder and CEO for breach of contract.
Twitter received both positive and negative news this week about the lawsuit. Let’s begin with the positive news. On Tuesday, as Deadline reported, the company got a positive ruling from the judge in the case.
Delaware Chancery Court Judge Kathaleen McCormick has set a five-day trial in October for Twitter’s lawsuit against Elon Musk. Musk’s lawyers wanted an early February date. The company requested a four-day expedited trial.
Today’s ruling favored Twitter because the judge agreed that delays can cause irreparable damage to its business and any other public company. Andrew Rossman represented the Musk camp. She said that a trial in fall was impossible for everyone involved. After hearing both sides’ arguments, she stated that the defendants underestimate the court’s ability.
But, the bad news is that Twitter may be already suffering from the uncertainty and delay over its unfinished deal.
Twitter swung to a loss in the June quarter and missed Wall Street’s revenue forecast, blaming ad-industry headwinds and uncertainty surrounding its acquisition by Elon Musk.
It swung to a $270 million loss from a $66 million profit the year earlier. The revenue was $1. 18 billion was down 1% year-over-year (or up 2% on a constant currently basis that excludes foreign exchange fluctuations).
Twitter shares have fallen 1.7%
The publication added that “Twitter clocked 237.8 million MAUs, or monetizable daily active users, up 17% from last year’s quarter but lower than anticipated all as the company prepares to enter the ring with Elon Musk.”
Twitter has released a statement stating that they have not held an earnings call and are not sending letters to shareholders.
“Given the pending acquisition of Twitter by an affiliate of Elon Musk, we will not host an earnings conference call, issue a shareholder letter, or provide financial guidance in conjunction with our second quarter 2022 earnings release,” said Twitter, so there won’t be any color around that. The boilerplate background was provided on the dispute.
It’s obvious that they want to stop such things from happening right now.