Twitter blames Elon Musk as revenue declines in Q2 2022

Elon Musk has been blamed for Twitter’s dwindling revenue after it reported $1.18 billion in turnover for Q2 2022 financial statements, as the company and the billionaire battle over the $44 billion acquisition deal.

Twitter generated less revenue compared to the $1.19 billion grossed in Q2 2021. It also posted $270 million net loss, against the $66 million profit recorded during the corresponding period of Q2 2021.

The social media company cited Musk, ad industry problems and the economic environment as reasons for the poor revenue report of the second quarter, with emphasis on the billionaire.

Twitter explained “uncertainty related to the pending acquisition of Twitter by an affiliate of Elon Musk” is weighing on revenue source such as ad, as advertisers are unsure of Musk’s ad policy if he eventually acquire the company.

Ripples Nigeria had reported that there was uncertainty around the acquisition deal, with Musk backing out of the takeover agreement and Twitter board heading to the court to enforce the deal.

Read also:Elon Musk to countersue Twitter, as they collide over court schedule

Musk had terminated the agreement citing breach of contract on the part of the board. He accused them of refusing to grant him access to complete user data to help him determine if fake users truly account for less than 5% of the total users as claimed by the management.

Twitter said it provided information relating to users based on their acquisition agreement, and Musk must complete the deal, cause his influence could have a material impact on their earnings.

Meanwhile, Twitter’s daily users grew to 237 million in Q2, from 229 million in the previous quarter.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now