Knightshade
Well-Known Member
...such as?
I mean, specifically, legally, what's the play there that gets him out of the contract WITHOUT the chancery court forcing him to obey it?
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Did Musk buy Twitter
- Thread starter ThomasD
- Start date
...such as?
I mean, specifically, legally, what's the play there that gets him out of the contract WITHOUT the chancery court forcing him to obey it?
Tam
Well-Known Member
The lawsuit's purpose is to make Elon Musk keep his word and proceed with the original deal.
Elon Musk says he is now keeping his word and proceeding with the original deal, so logically dropping the lawsuit should be simple.
The problem is that he keeps changing his words, so what makes him stop changing his words once the lawsuit is dropped?
It's so simple but notice that Twitter has not announced any response publically.
Thus, it sounds like Twitter is taking time to respond in public just in case he changes his mind once the lawsuit is dropped.
The status as of yesterday:
"Twitter's legal team and lawyers for Musk updated the judge on Tuesday with their attempts to try to overcome mutual distrust and find a process for closing the deal."
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Musk, Twitter could reach deal to end court battle, close buyout soon - source
Elon Musk and Twitter Inc may reach an agreement to end their litigation in coming days, clearing the way for the world's richest person to close his for the social media firm, a source familiar with the matter told Reuters.
www.reuters.com
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he's likely buying time... I wouldn't take Elon by his word. If he's now proceeding with the purchase at originally agreed price - what was the lawsuit all about...The lawsuit's purpose is to make Elon Musk keep his word and proceed with the original deal.
Elon Musk says he is now keeping his word and proceeding with the original deal, so logically dropping the lawsuit should be simple.
The problem is that he keeps changing his words, so what makes him stop changing his words once the lawsuit is dropped?
It's so simple but notice that Twitter has not announced any response publically.
Thus, it sounds like Twitter is taking time to respond in public just in case he changes his mind once the lawsuit is dropped.
The status as of yesterday:
"Twitter's legal team and lawyers for Musk updated the judge on Tuesday with their attempts to try to overcome mutual distrust and find a process for closing the deal."
Musk, Twitter could reach deal to end court battle, close buyout soon - source
Elon Musk and Twitter Inc may reach an agreement to end their litigation in coming days, clearing the way for the world's richest person to close his for the social media firm, a source familiar with the matter told Reuters.
sleepydoc
Well-Known Member
my guess is that Twitter and its legal team are busy drafting an agreement with deadlines and penalties for not adhering to the deadlines. Given Musk's history on this, the prudent course would be to stay the lawsuit pending completion of his acquisition of twitter. If everything goes through then they can move to dismiss it. If not they move forward.The lawsuit's purpose is to make Elon Musk keep his word and proceed with the original deal.
Elon Musk says he is now keeping his word and proceeding with the original deal, so logically dropping the lawsuit should be simple.
The problem is that he keeps changing his words, so what makes him stop changing his words once the lawsuit is dropped?
It's so simple but notice that Twitter has not announced any response publically.
Thus, it sounds like Twitter is taking time to respond in public just in case he changes his mind once the lawsuit is dropped.
The status as of yesterday:
"Twitter's legal team and lawyers for Musk updated the judge on Tuesday with their attempts to try to overcome mutual distrust and find a process for closing the deal."
Musk, Twitter could reach deal to end court battle, close buyout soon - source
Elon Musk and Twitter Inc may reach an agreement to end their litigation in coming days, clearing the way for the world's richest person to close his for the social media firm, a source familiar with the matter told Reuters.
Tam
Well-Known Member
So far, Twitter's response is: "The intention of the Company is to close the transaction at $54.20 per share.” but it does not indicate that it will stop the lawsuit.
Thus, today, Elon Musk filed to ask the court to stop the lawsuit:
"Twitter will not take yes for an answer. Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.”
www.cnbc.com
Thus, today, Elon Musk filed to ask the court to stop the lawsuit:
"Twitter will not take yes for an answer. Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.”
Musk must complete Twitter deal by Oct. 28 to avoid trial, judge rules
In a court filing on Thursday, Elon Musk said he wants Twitter to call off existing litigation in order to close the deal at $54.20 a share this month.
www.cnbc.com
Knightshade
Well-Known Member
Twitter is happy to take yes, and we close in the next 2 business days for an answer.
Since that's what the merger agreement actually calls for.
It's understandable they might be more reluctant to take "Yes, if you let us wait over 3 weeks, which is a week past the expiration of the funding guarantee" for an answer.
Interestingly, Chancery Daily said the funding deadline gets auto-extended to court decision plus 20 days.... whereas if the court case is dropped Oct 20 would remain the deadline---- so maybe this is just another Stupid Elon Trick to get out of buying at all that won't work because unlike Elon everyone else actually read the whole contract?
Since that's what the merger agreement actually calls for.
It's understandable they might be more reluctant to take "Yes, if you let us wait over 3 weeks, which is a week past the expiration of the funding guarantee" for an answer.
Interestingly, Chancery Daily said the funding deadline gets auto-extended to court decision plus 20 days.... whereas if the court case is dropped Oct 20 would remain the deadline---- so maybe this is just another Stupid Elon Trick to get out of buying at all that won't work because unlike Elon everyone else actually read the whole contract?
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sleepydoc
Well-Known Member
there was a followup article:So far, Twitter's response is: "The intention of the Company is to close the transaction at $54.20 per share.” but it does not indicate that it will stop the lawsuit.
Thus, today, Elon Musk filed to ask the court to stop the lawsuit:
"Twitter will not take yes for an answer. Astonishingly, they have insisted on proceeding with this litigation, recklessly putting the deal at risk and gambling with their stockholders’ interests.”
Musk must complete Twitter deal by Oct. 28 to avoid trial, judge rules
In a court filing on Thursday, Elon Musk said he wants Twitter to call off existing litigation in order to close the deal at $54.20 a share this month.
Musk must complete Twitter deal by Oct. 28 to avoid trial, judge rules
In a court filing on Thursday, Elon Musk said he wants Twitter to call off existing litigation in order to close the deal at $54.20 a share this month.
www.cnbc.com
unfortunately it has virtually no new information beyond the headline but it makes sense. Twitter keeps the lawsuit active until the deal is completed. At this point, there is no trust between Musk and Twitter and I'm sure Twitter is suspicious that Musk's latest offer is simply a tactic to delay the trial rather than a bonafide offer.
stopcrazypp
Well-Known Member
Right, Elon's word is worth nothing to Twitter at this point, so no way they drop the suit before Elon actually executes. If they pull the suit and Elon says "oops I changed my mind again" that is another delay.there was a followup article:
Musk must complete Twitter deal by Oct. 28 to avoid trial, judge rules
In a court filing on Thursday, Elon Musk said he wants Twitter to call off existing litigation in order to close the deal at $54.20 a share this month.
unfortunately it has virtually no new information beyond the headline but it makes sense. Twitter keeps the lawsuit active until the deal is completed. At this point, there is no trust between Musk and Twitter and I'm sure Twitter is suspicious that Musk's latest offer is simply a tactic to delay the trial rather than a bonafide offer.
Tam
Well-Known Member
Thanks for the update at the same link. Minutes after I posted, it did revise and add Twitter's filing:
“Defendants’ proposal is an invitation to further mischief and delay,”
If Elon Musk is serious, he just pays up before the trial date, which will make the lawsuit obsolete (because the remedy was fulfilled).
However, Elon Musk's demands are not about the willingness to pay before the court date but about dropping the lawsuit first and trusting him that the money will magically follow.
sleepydoc
Well-Known Member
sleepydoc
Well-Known Member
Seems like a common sense ruling by the judge. If Musk's offer was legit then it will close by the 28th as he promised and the trial is a moot point. If it wasn't then he needs to be able to answer. It's more of a victory for Twitter than Musk but it's still a victory for him as long as he completes the deal.
stopcrazypp
Well-Known Member
I guess it's a partial victory in getting a slight delay, but Twitter is ending up a bigger winner overall. Seeing recent reports however, the banks are kind of in trouble trying to finance this transaction, I wonder if that will play a role. There may be continual litigation if one or more financers end up backing out.
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Knightshade
Well-Known Member
My understanding is the banks are on the hook for the $. They agreed to provide it, largely unconditionally (apart from things like the dates and such). Being unable to get good terms reselling it to others was not one of those conditions.
So if they now have problems selling off that debt, that's a them problem, not a problem for twitter. It's not like they don't have that money- they'd just prefer not to have to resell the debt for the amount of discount that it's likely to require under current conditions.
And as noted the court, and this judge specifically, has previously forced a merger buyer to buy anyway when they DID lose financing because their own efforts contributed to losing it- which would put Elon in the position of having to sue the bank if THEY tried to back out or he's on the hook for it... most likely the banks wouldn't want to get into a lawsuit with the worlds richest man and they just take the (for them small) haircut on the funding resale discount.
sleepydoc
Well-Known Member
…and it looks like he did indeed buy twitter. Now it just remains to be seen what he’ll do with it.
www.cnbc.com
Twitter is now owned by Elon Musk — here's a brief history from the app's founding in 2006 to the present
Here's a timeline of Twitter's most notable moments over the past 16 years.
www.cnbc.com
ElectricIAC
Good-Natured Rascal
Clearly he’s gonna make it awesome.…and it looks like he did indeed buy twitter. Now it just remains to be seen what he’ll do with it.
Twitter is now owned by Elon Musk — here's a brief history from the app's founding in 2006 to the present
Here's a timeline of Twitter's most notable moments over the past 16 years.
sleepydoc
Well-Known Member
Or awesomely…
Twitter actually came out pretty good on this since the price has dropped significantly since he made his initial offer.
I was reading another article on twitter usage and it isn’t pretty. Many of the Heavy users have left the platform and the main areas of growth are posts related to cryptocurrencies and ‘Not suitable for work’ content.
ZenRockGarden
Active Member
and become even more distracted from his main mission at Tesla and SpaceX by this twitter side show.
Also: owning twitter and de-facto having a huge say on content moderation isn't going to be fun when you also do a lot of business with China who tends to see "freedom of speech online" quite restrictive. Imagine a devout anti-Xi account or whistleblower being on twitter and at the same time Tesla needs another permit or whatever for Shanghai. The Chinese do know that Musk owns twitter and could put him in a difficult spot.
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