LONDON: Twitter reported a quarterly loss Friday as revenue slipped even as its number of users climbed.
The social media company’s latest quarterly earnings figures offered a glimpse into how the social media business has performed during a months-long negotiation with billionaire and Tesla CEO Elon Musk over whether he will take over the company.
The company lost $270 million in the April-June period after revenue slipped 1 percent to $1.18 billion, reflecting advertising industry headwinds, as well as uncertainty” over Musk’s acquisition bid.
The number of daily active users rose 16.6 percent to 237.8 million compared with the same period a year before.
Twitter chalked up the gains to “ongoing product improvements and global conversation around current events.”
Overshadowing Twitter’s latest sales results is its legal fight with Musk to make good on his April promise to buy the company for $44 billion. Twitter last week sued Musk to complete the deal and both sides are bracing for an October courtroom trial to resolve the dispute.
Given the pending acquisition, Twitter said it wouldn’t hold its usual quarterly earnings conference call or issue a shareholder letter.
The April-June fiscal quarter encompassed a tumultuous three months for Twitter, starting with the April 4 disclosure that Musk had acquired a huge stake in the company, paving the way for his takeover bid later that month. It didn’t take long for the relationship to fray as Musk publicly tweeted his concerns about Twitter and its employees and signaled he was having second thoughts.
Twitter argued in court that Musk’s actions in and his “repeated disparagement of Twitter and its personnel” created uncertainty that harmed Twitter’s business operations, employees and stock price.
It called for an expedited trial so the company could carry on with important business decisions, while Musk sought to wait until next year because of the complexity of the case and his demands for more of Twitter’s internal data about how it counts fake and automated “spam bot” accounts — which he’s cited as a chief reason for trying to terminate the deal.
A judge this week set the trial for October, siding with Twitter’s concerns that too much delay could cause the company irreparable harm. It will be held in Delaware’s Court of Chancery, which handles many high-profile business disputes, unless Musk and Twitter settle the case before then.
Shares slid 2 percent before the opening bell Friday.
Twitter, in Musk fight, posts $270M quarterly loss
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Twitter, in Musk fight, posts $270M quarterly loss
- The company lost $270 million in the April-June period after revenue slipped 1% to $1.18 billion
- The number of daily active users rose 16.6% to 237.8 million compared with the same period a year before
EU warns Meta it must open up WhatsApp to rival AI chatbots
- The EU executive on Monday told Meta to give rival chatbots access to WhatsApp after an antitrust probe found the US giant to be in breach of the bloc’s competition rules
BRUSSELS: The EU executive on Monday told Meta to give rival chatbots access to WhatsApp after an antitrust probe found the US giant to be in breach of the bloc’s competition rules.
The European Commission said a change in Meta’s terms had “effectively” barred third-party artificial intelligence assistants from connecting to customers via the messaging platform since January.
Competition chief Teresa Ribera said the EU was “considering quickly imposing interim measures on Meta, to preserve access for competitors to WhatsApp while the investigation is ongoing, and avoid Meta’s new policy irreparably harming competition in Europe.”
The EU executive, which is in charge of competition policy, sent Meta a warning known as a “statement of objections,” a formal step in antitrust probes.
Meta now has a chance to reply and defend itself. Monday’s step does not prejudge the outcome of the probe, the commission said.
The tech giant rejected the commission’s preliminary findings.
“The facts are that there is no reason for the EU to intervene,” a Meta spokesperson said.
“There are many AI options and people can use them from app stores, operating systems, devices, websites, and industry partnerships. The commission’s logic incorrectly assumes the WhatsApp Business API is a key distribution channel for these chatbots,” the spokesperson said.
Opened in December, the EU probe marks the latest attempt by the 27-nation bloc to rein in Big Tech, many of whom are based in the United States, in the face of strong pushback by the government of US President Donald Trump.
- Meta in the firing line -
The investigation covers the European Economic Area (EEA), made up of the bloc’s 27 states, Iceland, Liechtenstein and Norway — with the exception of Italy, which opened a separate investigation into Meta in July.
The commission said that Meta is “likely to be dominant” in the EEA for consumer messaging apps, notably through WhatsApp, and accused Meta of “abusing this dominant position by refusing access” to competitors.
“We cannot allow dominant tech companies to illegally leverage their dominance to give themselves an unfair advantage,” Ribera said in a statement.
There is no legal deadline for concluding an antitrust probe.
Meta is already under investigation under different laws in the European Union.
EU regulators are also investigating its platforms Facebook and Instagram over fears they are not doing enough to tackle the risk of social media addiction for children.
The company also appealed a 200-million-euro fine imposed last year by the commission under the online competition law, the Digital Markets Act.
That case focused on its policy asking users to choose between an ad-free subscription and a free, ad-supported service, and Brussels and Meta remain in discussions over finding an alternative that would address the EU’s concerns.
