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Twitter has to pay $ 800 million for comparison with investors

2021-09-20T17:33:31.032Z

Investors have been arguing with Twitter for years - because top managers are said to have made misleading statements about user growth. Now the social network has reached an expensive settlement with the plaintiffs.



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Twitter logo at company headquarters in San Francisco

Photo: STEPHEN LAM / REUTERS

The short message service Twitter has reached a comparison in a long-standing dispute with investors over misleading information on the number of its users.

Twitter wants to pay $ 809.5 million, the company said.

A court still has to approve this.

The investors had already sued in 2016.

Her allegation: Senior managers of Twitter, including the founder Jack Dorsey and the then boss Dick Costolo, did not reveal the full truth about slower growth in the number of users when they sold their own Twitter shares in 2015.

Because of this, the share price had temporarily fallen back then.

The desired comparison regulates all lawsuits and is not an admission of guilt, said Twitter.

After legal approval, the money should flow this year.

Twitter presented surprisingly good business figures in July. Second quarter earnings were $ 66 million and sales were $ 1.19 billion. The number of daily active users to whom advertisements can be displayed, which is important for Twitter, rose to 206 million people. That was an increase of eleven percent compared to the same period last year.

In the future, Twitter could also earn money in other ways than traditional advertising.

Well-known Twitter users with a large following should be able to offer paid content over the network.

This could include subscription models or exclusive audio events.

The company then intends to withhold commissions from sales, which can amount to 20 percent for high sums.

Twitter is currently testing some of these new features in the US.

fdi / AFP

Source: spiegel

All business articles on 2021-09-20

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