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Elon’s Out

bloomberg.com

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Re: Elon’s Out

#31

Post by prox »

nabla9 wrote: post #26
aaaaaaaaata wrote: post #8

Earlier quoted context omitted.

His money will keep on talking tomorrow, unfortunately.

His dollar is worth 70 cent after this. It's likely that this will be the most expensive manic episode any individual has suffered.

Yeah, I am worried he has a mental imbalance that makes him unsuited for some decisions. If he is wise he should just focus on a few things and do it right. I admire what he has done for space travel for example, but hopefully he doesn’t have to many yes men around him that make him to do much unstable things.

Re: Elon’s Out

#32

Post by jollybean »

imustbeevil wrote: post #23
jollybean wrote: post #20

Earlier quoted context omitted.

? It's my understanding that if Musk walks, he's supposed to pay $1B and visa versa. So he's using the 'bot' issue to find an excuse for a deal he wants out of. [1] https://www.cbc.ca/news/business/elon-musk-twitter-1.6432315

It seems like a common misunderstanding because the reporting around this is so bad. > Musk and Twitter agreed to a so-called reverse termination fee of $1 billion when the two sides reached a deal last month. Still, the breakup fee isn’t an option payment that allows Musk to bail without consequence. > A reverse breakup fee paid from a buyer to a target applies when there is an outside reason a deal can’t close, suc…

What did I misunderstand?

Yes, I get that if there are 'material issues' maybe he can walk (even though he apparently waved a lot of that).

He can't just walk away for 'no reason' and not pay the fine.

The crashing price is probably not a legit reason.

Re: Elon’s Out

#34

Post by TillE »

refurb wrote: post #28
xiphias2 wrote: post #11

I don’t understand why we need to make things personal: a multibillionaire with practically unlimited resources is negotiating with a multibillion dollar corporation with practically unlimited resources. It’s clear that the offer Elon got stuck with has an unrealistic price at this point (and Elon just want a reason to get out of the deal), just like it’s clear that Twitter’s management is incompetent in the last few…

Pretty much. It’s like selling a house and buyer makes an offer with no contingencies. Sure, you can sue them to close the deal but the juice isn’t worth the squeeze. Does Twitter want to be locked into some multi-year court battle? They’ll settle and the news will move onto something else.

It's not like there's another buyer out there offering $44 billion. Twitter has no reason to settle, unless maybe the stock price goes way up.

Re: Elon’s Out

#35

Post by eftychis »

nathanvanfleet wrote: post #22
eftychis wrote: post #18

Earlier quoted context omitted.

No. The $1B clause does not involved the two contractual parties pulling out of the deal.

Why do you think it's mutual when Twitter is suing him for backing out?

The deal can be stopped by a third party which is not the case at this point. See another grandchild comment that expanded on that.

Re: Elon’s Out

#36

Post by np- »

alphabetting wrote: post #4

I found this part most interesting. Public awareness of the Delaware Court of Chancery is about to skyrocket during this court battle. The fact that Musk is working in such bad faith here — that he seems so unconcerned with law and the contract he signed — cuts both ways. On the one hand, it will certainly annoy a Delaware chancellor; Delaware likes to think of itself as a stable place for corporate deals, with predi…

Assuming that is the appropriate penalty (I know nothing about Chancery law), why exactly can’t they just issue a warrant for his arrest and put him in jail? He doesn’t have a private militia or anything like that

Re: Elon’s Out

#37

Post by kgwgk »

jollybean wrote: post #32
imustbeevil wrote: post #23

Earlier quoted context omitted.

It seems like a common misunderstanding because the reporting around this is so bad. > Musk and Twitter agreed to a so-called reverse termination fee of $1 billion when the two sides reached a deal last month. Still, the breakup fee isn’t an option payment that allows Musk to bail without consequence. > A reverse breakup fee paid from a buyer to a target applies when there is an outside reason a deal can’t close, suc…

What did I misunderstand? Yes, I get that if there are 'material issues' maybe he can walk (even though he apparently waved a lot of that). He can't just walk away for 'no reason' and not pay the fine. The crashing price is probably not a legit reason.

The point is that paying the ‘fine’ doesn’t give him the right to walk away for ‘no reason’. If he does he may end paying damages for much more than $1bn.

Re: Elon’s Out

#38

Post by hartator »

> that it has knowingly been massively understating the number of bot accounts in order to trick companies into buying Twitter ads and shareholders into buying Twitter stock

Wasn’t Google Ads 80% fake clicks on some studies? It won’t be surprising Twitter Ads is actually worse. There is so zero incentive to clean it up and so many shady reasons to do it.

Re: Elon’s Out

#39

Post by paulgb »

kgwgk wrote: post #33
nathanvanfleet wrote: post #22

Earlier quoted context omitted.

Why do you think it's mutual when Twitter is suing him for backing out?

Why do you think he thinks it’s mutual?

The phrasing could be read that way “No. The $1B clause does not involved the two contractual parties pulling out of the deal.” (Emphasis mine)

I think OP may have intended to say “one of the two parties”

Re: Elon’s Out

#40

Post by refurb »

jcranmer wrote: post #30
refurb wrote: post #28

Earlier quoted context omitted.

Pretty much. It’s like selling a house and buyer makes an offer with no contingencies. Sure, you can sue them to close the deal but the juice isn’t worth the squeeze. Does Twitter want to be locked into some multi-year court battle? They’ll settle and the news will move onto something else.

> Does Twitter want to be locked into some multi-year court battle? Delaware courts are pretty fast. The court case could conceivably be finished before the end of this year.

Presumably Musk’s legion of lawyers can find some way to drag things out.
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