Twitter freezes employee stock ahead of deadline for Elon Musk deal…

As announced on April 25, 2022, Twitter entered into a merger agreement, pursuant to which Twitter agreed
to be acquired by an entity wholly owned by Elon Musk, for $54.20 per share in cash. Upon completion of
the transaction, Twitter will become a privately held company.
On July 8, 2022, representatives of Mr. Musk delivered a notice purporting to terminate the merger
agreement. Twitter believes that Mr. Musk’s purported termination is invalid and wrongful, and the merger
agreement remains in effect. On July 12, 2022, Twitter commenced litigation against Mr. Musk and
certain of his affiliates to cause them to specifically perform their obligations under the merger agreement
and consummate the closing in accordance with the terms of the merger agreement. On July 19, 2022,
Twitter’s request for an expedited trial was granted, and the trial is being scheduled for October 2022.
Adoption of the merger agreement by our stockholders is the only remaining approval or regulatory
condition to completing the merger under the merger agreement. The exact timing of completion of the
merger, if at all, cannot be predicted because the merger is subject to ongoing litigation, adoption of the
merger agreement by our stockholders and the satisfaction of the remaining closing conditions.

Q2 average monetizable daily active usage (mDAU) was 237.8 million, up 16.6% compared to Q2
of the prior year. The increase was driven by ongoing product improvements and global
conversation around current events.
○ Average US mDAU was 41.5 million for Q2, up 14.7% compared to Q2 of the prior year.
○ Average international mDAU was 196.3 million for Q2, up 17.0% compared to Q2 of the
prior year.
● Q2 revenue totaled $1.18 billion

Costs and expenses totaled $1.52 billion, an increase of 31% year-over-year.

Operating loss was $344 million, representing a -29% operating margin, compared to operating
income of $30 million or 3% operating margin in the same period last year.

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