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Elon Musk Wants to Terminate $44 Billion Twitter Acquisition [Updated]
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Elon Musk will never be taken seriously again if he wants to acquire a huge company in the future.
Good. The guy that builds Electric cars that catch on fire. and you can't put the battery acid fire out without 8000 gallons of water. And the self driving car crashes and kills people
And he had babies with 2 women.
And he had babies with 2 women.
Nah, caveat emptor. Musk didn’t bother to check the odometer, and now he’s stuck with the car. Buyer beware, he’s on the hook. Had he actually done the due diligence he was entitled to do, he could make the argument, but he didn’t show any sign that he cared if Twitter was a lemon or not when he agreed to the deal. Also, Musk is claiming fraud, it hasn’t been proven, and just because other studies with different methodologies came to different conclusions does not mean Twitter committed fraud.
He exposed them, that was enough.
If 20% of the users are bots, my bet is that they make up a huge portion of the traffic. As advertisers pay based on users, Twitter could turn out to be committing the biggest corporate fraud in history. Like Eron.
If 20% of the users are bots, my bet is that they make up a huge portion of the traffic. As advertisers pay based on users, Twitter could turn out to be committing the biggest corporate fraud in history. Like Eron.
I don't actually have strong opinions on this but I just find it strange he waived due diligence when he signed. Was that an oversight or was there an incentive for that to happen? One would think due diligence on even much smaller deals would be standard.
I agree
Elon Musk’s Twitter Deal Has Become A Multibillion-Dollar Game Of Chicken
It doesn't matter whether the billionaire is actually right about bots on Twitter. He nonetheless probably has enough leverage now to force the company to renegotiate its sale price.
www.forbes.com
Who owes the termination fee (and whether one is owed) doesn't hinge on who terminated the agreement; it hinges on why the agreement was terminated. For instance, if Twitter terminates the agreement so that it can enter into a better acquisition agreement with someone else, it owes the fee. If Mr. Musk terminates the agreement because Twitter's board recommends that shareholders vote against the agreement, Twitter still owes the fee. In the current situation, it seems likely that Mr. Musk would owe the fee unless, e.g., he could demonstrate fraud by Twitter. That said, there are a number of ways that the parties could get out of the deal without owing the fee - e.g., if Twitter's shareholders vote against the deal (while the board recommended they vote for it), Twitter wouldn't owe the fee.
I only mentioned education in an effort to show he’s not some multi doctorate holder which a lot of people think he is. He’s not the Stephen Hawking of our generation so let’s not pretend.
The $1 billion termination fee comes into play, even if the agreement is terminated by the parties themselves, for specified reasons or under specified circumstances.I think this is false, the fee only comes into play if a third party (like the FTC, SEC, etc.) cancels the deal.
Elon Musk can't just walk away from his Twitter deal by paying a $1 billion breakup fee
Musk can't just walk away from buying Twitter, despite a $1 billion reverse break fee attached to the deal.www.cnbc.com
That's not to say there still couldn't be actions demanding, e.g., specific performance.
I said it from the start. He never intended on buying it in the first place. Why would he. His whole freedom thing was BS.
Twitter is certainly not worth billions and Elon has realized this.
My guess is that Twitter gets their $1B and they go after Musk for damages for making a bad faith offer. I think the prospect of discovery might even force Musk into a sizable settlement. Either way I don't think he escapes consequences from Twitter or investors in his other ventures that are certainly feeling like they were mislead regarding the reasons for his sizable share sell-offs
The number of bots was found to be far above the amount stated (presumably 5%) by whom?
Who, other than Twitter, would have the information needed to make such a determination? Twitter hasn't claimed, e.g., that the number of accounts on its platform which are bots is fewer than 5%. Rather, it's estimated that false or spam accounts represented fewer than 5% of its mDAU counts. And it's been quite clear that it doesn't know whether that 5% number is accurate. It acknowledges that the real number could be higher.
An outside party would have to know which accounts Twitter counts as mDAUs in order to determine that the number which are bots is higher than 5%. Twitter doesn't count all accounts as mDAUs, even if they are active. Accounts which it determines are false or spam aren't counted as mDAUs.
In other words, Twitter shareholders and executives want their money and will take legal action to get it, despite ignoring Elon’s requests for data before fully committing.
I hope they lose against Elon.
I hope they lose against Elon.
Wait, isn’t this good news? I thought people were so afraid the Elon would “destroy free speech” by buying Twitter. Well, guess what, crisis averted. So now people should be looking into the Twitter board for pursuing this acquisition. Sounds like they’re the greedy one.
The crazy part is losing a billion dollars is the least of the damages he will need to contend with. The contract was made by lawyers on both sides, he will need to pay the poison pill.
Good riddance. Hopefully Elon is out $1B and Twitter fails to force the merger.
And then, hopefully Tesla slowly disintegrates as everyone else builds new electric cars (I say this despite having owned two).
May have been his plan all along- a reason to liquidate tens of billions in Tesla shares near the peak without spooking the market as much as it would have had he not had a “valid” reason to do so.
And then, hopefully Tesla slowly disintegrates as everyone else builds new electric cars (I say this despite having owned two).
May have been his plan all along- a reason to liquidate tens of billions in Tesla shares near the peak without spooking the market as much as it would have had he not had a “valid” reason to do so.
This is why i dont really trust Tesla stock or Tesla as a brand in general. The guy is just too erratic and wishy washy.
Inspires zero confidence
Inspires zero confidence
Why not terminate both Twitter and Elon, a win win for sure 🤩
Musk is “extremely right wing”? You must really be offended by logic
Exactly! The first bid for Twitter was rejected and Elon sweeten the pot by waiving the right for due diligence. Then after the whole story about the employee he showed himself to came out suddenly he wasn't too interested in Twitter and the amount of Spam Bots became his interest.