Twitter Expenses on Elon Musk Unsettled Acquisition

Twitter Expenses on Elon Musk Unsettled Acquisition
  • The costs and expenses were disclosed by Twitter in its 10-Q filing to the SEC.
  • Twitter sets date for shareholders to vote on the Elon Musk acquisition.

Twitter reported expenses of $33.1 million for the second quarter due to the merger, which is battling with Elon Musk, after he declared his intention to drop out of his $44 billion deal to purchase the social media network. Twitter spent $1.52 billion, overall a 31% increase from the same period last year.

The costs were disclosed by Twitter in its 10-Q filing to the SEC on Tuesday. The report stated that, other than the $33.1 million in transaction expenses related to Musk’s proposed acquisition, “the Merger Agreement did not impact the Company’s consolidated financial statements”.

Twitter’s Urge on The Deal

The world’s richest man Musk presented a notice that claimed to end the Merger Agreement on July 8, 2022. The notice stated that Twitter had broken the conditions of the merger agreement and Musk denies Twitter’s statement that fake and spam accounts are less than 5% of its entire user base.

At that time Twitter thinks Musk’s alleged termination is illegal and unjustified, and the Merger Agreement is still in force. Following that Twitter filed a lawsuit on July 12, 2022, in an effort to get Musk and Acquisition Company to fulfill their commitments under the Merger Agreement and complete the transaction in line with its terms.

However, On July 19, 2022, Twitter requested the Delaware Court of Chancery to speed up the case. In consideration of this, the court granted Twitter’s request and schedule a five-day trial in October 2022.

On the other hand, Twitter sent a letter to the company’s shareholders that the company  has scheduled the shareholder vote on CEO and billionaire Elon Musk’s acquisition of the firm on September 13th.

William Savitt, the lawyer for Twitter, argued at the hearing that the platform is suffering as a result of the uncertainty of Elon Musk’s purchase. 

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