Elon Musk has given up on buying Twitter. Definitely. It is no longer a matter of rumors, but it is now there Sec, the company that controls the US Stock Exchange, to confirm it. According to a letter sent by the billionaire's lawyer to the company's legal department, of which the SEC has received a copy, "Twitter has failed to meet its contractual obligations" and has not provided the "requested commercial information". “Twitter has sometimes ignored Musk's requests, sometimes rejected them for reasons that we feel are unwarranted, and on other occasions it has provided incomplete or unusable information.” These are the textual words in the letter. The story, controversial from the start, began in April when Elon Musk launched aHostile takeover to acquire control of Twitter
The tug of war between Musk and Twitter began soon after. Elon Musk's staff claimed that i fake profiles of Twitter were about 20% of the total, while Twitter technicians had always replied that the case did not exceed 5% of all social network accounts and that the removal of fake accounts proceeded at a rate of one million a day. The fact is that, as soon as the news of Musk's renunciation of the purchase of the platform spread, the Twitter actions they tumbled 9% in post-close trading.
Twitter's problems between users, layoffs and operating margin
The problems for Twitter don't end there. The layoff of 30% of the team dedicated to recruiting, two months from hiring freeze throughout the company, suggest that the company cannot currently afford any type of investment for the relaunch. A problem which therefore renders vain any hope of satisfying onerous requests by those interested in the acquisition. In April, Twitter's balance sheet spoke of increased costs and expenses by 35%, with an operating loss of 128 million and one operating margin equal to -11% compared to 2021.
The Stock Exchange has been aware of these signals for some time - which are essentially those that have nominated Twitter to be prey to acquisitions - but now, Musk's resignation could mark the beginning of a decline from which it may not recover. As in the most classic parable of the digital economy.
