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The deal with Elon Musk has already cost $33 million

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Twitter spent $33 million on expenses related to Elon Musk’s proposed takeover in the second quarter of this year. Those costs are expected to increase with Twitter facing Musk in court. Musk is trying to back out of his bid to buy Twitter for $44 billion. Something is loading.

Twitter’s fight with Elon Musk is already costing the social media giant dearly.

Musk agreed to buy Twitter for $44 billion in April, but announced on July 8 that he wanted to walk away from the deal.

Twitter said in its second-quarter earnings report on Friday that it had already incurred $33 million in costs related to its “pending acquisition” by Musk.

Twitter also partly blamed a 1% drop in revenue on “uncertainty” caused by Musk’s turbulent acquisition.

Twitter’s costs will continue to rise as it heads into a legal battle with Musk. Twitter has hired business law firm Wachtell, Lipton, Rosen & Katz LLP to help it sue Musk in a bid to force him to honor his original deal and buy the company.

Musk’s claim is that Twitter gave him the wrong impression about the number of fake accounts on its platform. In its regulatory filings, Twitter says about 5% of accounts are fake, but Musk’s lawyers said Tesla’s billionaire analysis shows the figure is “well over 5%”.

Twitter lawyers said Musk’s stated concern about fake accounts is a smokescreen and that he only wants to pull out of the deal because his Tesla shares have fallen.

Twitter scored an early victory in its lawsuit against Musk as it secured an expedited trial to minimize the “business risk” posed to the company.

Even if the initial judgment comes quickly in Twitter’s favor, Musk could appeal the decision and make the case drag on for up to three years, Harry Kraemer, professor of management and strategy at the Kellogg School of Management, told Insider. from Northwestern University.

“The big, big winners of this one will be the law firms,” ​​Kraemer said, adding, “These guys are going to make a fortune.”

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