Twitter blames Musk, weak digital ad market for incurring loss

Twitter Inc (NYSE: TWTR) on Friday blamed its ongoing legal battle against Elon Musk and a weakening digital advertising market for a surprise fall in quarterly revenue and a net loss.

The earnings report comes as the social media platform has sued Musk for terminating his $44 billion offer to buy Twitter and is now preparing for an expedited legal showdown in a trial set to begin in October.

The deal has worried Twitter's advertisers and caused chaos inside the company.

Advertising revenue increased just 2% to $1.08 billion, missing Wall Street expectations of $1.22 billion.