bkp_duke
Well-Known Member
Again, as I've said before, he's buying the customer base. Not the technology. The customer base is not actually THAT easy to move over to another platform, as a former president has shown us.
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Elon & Twitter
- Thread starter Buckminster
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Again, as I've said before, he's buying the customer base. Not the technology. The customer base is not actually THAT easy to move over to another platform, as a former president has shown us.
bkp_duke
Well-Known Member
And yes, these deals CAN be re-negotiated after and agreement is signed, if there is cause (and Elon believes the bots are cause):
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www.reuters.com
EDIT - this part I was unaware of, however:
If he did waive that, he would have to prove that what he was buying was materially different than described. The bots may or may not be enough to get that.
Regardless, I think he's going to buy it even if he has to pay full price. But he would be stupid not to try to get an adjustment down given the bot discovery.
Explainer: Can Elon Musk renegotiate a lower price for his Twitter deal?
Twitter Inc shares have plunged to their lowest level since the social media company agreed to sell itself to Elon Musk for $44 billion on April 25, raising questions over whether the world's richest person will try to renegotiate the deal.
www.reuters.com
EDIT - this part I was unaware of, however:
If he did waive that, he would have to prove that what he was buying was materially different than described. The bots may or may not be enough to get that.
Regardless, I think he's going to buy it even if he has to pay full price. But he would be stupid not to try to get an adjustment down given the bot discovery.
Daniel in SD
(supervised)
For a free speech advocate it is hypocritical that the official Tesla forums are down for input. What a nazi Elon is.
I’ve heard you say it. He’s not doing a good job of endearing all customers - at all.
Twitter has been underrepresented in the social media valuation circle for a long time, for good reason. What better way to increase valuation than to take a political side as you purchase an asset!
bkp_duke
Well-Known Member
bkp_duke
Well-Known Member
See post above yours. Comes down to if he thinks he has a case about the bots making what he was sold materially different. That could be a long court battle, and the Twitter BoD may or may not go that route. We do know they solicited for other bids and no one showed up, so they may give him a token discount (1-2B off the price?) and close the deal that way to avoid costly litigation, which would likely crush the share price.
If anyone wants to see the actual language of the agreement, here it is:
agree. i think the 'materially different' language is a high bar to clear. burden of proof will be for Elon to bear. as mentioned earlier, this will be hard to prove when the whole calculation is fuzzy to begin with.
2daMoon
Mostly Harmless
Food for thought from SMR with details about funding to prevent Twitter takeover...
The conundrum is made worse by the fact the company wasn’t worth $54.20 to begin with. Probably should have been priced at negative value even then....It really shows no signs of being a viable business. It functions, to use the word “functions” loosely, as a social media platform but not as a profitable enterprise. SO he’s stuck either paying full freight or at minimum a huge penalty and legal settlement for walking away, or following through on what is now retail-plus for an “asset” that had little value to begin with and lost much of its nominal value after reality struck and he realized his impulse to buy it was misguided.
Some serious 3D chess going on there.
There is one additional issue that the Directors need to contend with. If Elon is correct that the reported 5% daily bots is more like 20%+ -- and that's a big if -- the Officers and Directors could be be personally held liable for filing false SEC reports. Moreover, corporate insurance might not even pay if they believe that '5% constitutes the new 20%' is fraud.
Daniel in SD
(supervised)
Elon switched $6.25 billion in margin loan financing to equity in new SEC disclosure.
This guy thinks it means he's going to get a lower price. I have no idea.
This guy thinks it means he's going to get a lower price. I have no idea.
AlanSubie4Life
Efficiency Obsessed Member
He’s going for it! Does this mean the bottom of the market? Now that social media problems are solved sanity will be restored.
ZenRockGarden
Active Member
I would imagine Elon is lining up his cash in hopes of closing a new re-negotiated deal at a much cheaper price.
I expect Twitter will stand firm on the price as written in the contract, and the thing deadlocks and heads to court give or take Elon pulling some kind of stunt at the shareholders meeting.
bkp_duke
Well-Known Member
Same place as the previous 7.1B in private investment he lined up. People and funds with big $$$ to spend.
Elon Musk Secures $7.1 Billion in New Financing for Twitter
Elon Musk has secured about $7.1 billion of new financing commitments, including from billionaire Larry Ellison, a Saudi Prince, and Sequoia Capital, to help fund his proposed $44 billion takeover of Twitter Inc.
www.bloomberg.com
Elon Musk bags $7.1 billion Twitter funding from Binance, Sequoia and others
Other investors named in the filing on Thursday include the worlds largest crypto exchange, Binance Holdings Ltd, Brookfield Asset Management, Fidelity Management & Research, and Qatar Holding.
6.25B may be a lot to us, but I would be surprised if he hasn't already gotten verbal commitments for this from various people. It's just not a lot of money when you are talking about the financial circles that people like Elon are in.
The SEC report today says he's asking Jack Dorsey to move his existing TWTR shares to the private company, that's ~1B right there. It would reason that other large shareholders have been similarly approached.
Probably from our most important ally on the global war on sorcery, Saudi Arabia.
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