Twitter Reports High Earnings Ahead of Elon Musk’s $44 Billion Purchase
By Movieguide® Contributor
Twitter posted an influx of income and users for the first quarter of 2022 following Elon Musk’s purchase of the company to go private.
Q1 revenue was $1.20 billion, a 16% increase reflecting “headwinds associated with the war in Ukraine,” Twitter explained. The company’s net income for the quarter was $513 million, well above estimates by Wall Street.
While the company scheduled to meet and discuss the Q1 earnings, after tech billionaire Elon Musk purchased the social media platform, Twitter canceled the meeting.
“Given the pending acquisition of Twitter by Elon Musk, we will not be providing any forward looking guidance, and are withdrawing all previously provided goals and outlook,” a statement from the company read.
Movieguide® previously reported on Musk’s $44 billion acquisition of Twitter:
Elon Musk is set to buy out Twitter after, moving the company from a publicly traded entity to privately held. The announcement comes after Musk bought a controlling share in the company in early April. Musk cites the First Amendment of the right to free speech as his reasoning.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
Musk previously polled the platform’s users, asking if they felt Twitter adhered to free speech principles. The majority of respondents – 70%- voted no.
After news broke Monday, Musk tweeted, “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
The deal is expected to close by the end of the year.
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