Current Events > Elon calls it quits on Twitter merger.

(+) Yeah! (+)

Who could have possibly foreseen this eventuality?

[LFAQs-redacted-quote]


Tesla stocks gains, allegedly

Musk does actually need to start laying low for a bit. Dude's stock manipulation (not to mention Crypto shenanigans) will eventually get him in trouble.

DarkRoast posted...

Musk does actually need to start laying low for a bit.

He just went 9 days without tweeting. I think that's the best he can do unfortunately.

That shit stain of a human being is manipulating stock prices again, just like he did the entire crypto saga. Now Twitter is going to sue him to force the sale to go through. In the meantime, Elon will continue to earn interest on the money he put down as a retainer for the acquisition. It's free money for him. There was a great Twitter thread on it a few weeks ago.

Umbreon posted...

Yeah, when you're that rich fines need to be a %. Getting fined 20% would hurt way more than 1 bil.

The $1 billion isn't a "fine" in the sense of like a traffic fine. It's just an amount that Twitter and Elon agreed to in the negotiation "contract".

Anteaterking posted...

The $1 billion isn't a "fine" in the sense of like a traffic fine. It's just an amount that Twitter and Elon agreed to in the negotiation "contract".

Thing is, it's not just "walk away and pay $1B." It's basically the penalty he has to pay IF he literally has no way to buy the company (essentially, if he couldn't come up with the money / couldn't get the credit). He can't actually just walk away and pay it.

If all he had to do to leave the contract was pay $1B he would've done it a month or so ago.

Twitter has him by the balls on several issues, but the biggest one is that he signed several clauses that essentially said he wouldn't hold them liable even if the information they gave him was false. So to turn around and claim that Twitter has more bots than he expected would have already been a flimsy excuse, but to also be bound by this clause means he's flailing.

Wild that he tried to negotiate after signing the contract instead of before

I don't know if Twitter just got lucky or cleverly took advantage of Musk's hubris during the early days of his "oh YEAH? Well I can do what I want and just BUY Twitter!" by getting him to sign a contract with an indemnity clause, but now Musk is basically trapped in a situation that he legally can't get out of.

DarkRoast posted...

Musk does actually need to start laying low for a bit. Dude's stock manipulation (not to mention Crypto shenanigans) will eventually get him in trouble.

Youre not wrong. However, I think hes doing the opposite for PR. Hes been associated with some shady stuff and this keeps the public focused on him in a positive light. Its worth it for him just for PR, really.

CreekCo posted...

Youre not wrong. However, I think hes doing the opposite for PR. Hes been associated with some shady stuff and this keeps the public focused on him in a positive light. Its worth it for him just for PR, really.

PR is not going to help him in court.

CreekCo posted...

Youre not wrong. However, I think hes doing the opposite for PR. Hes been associated with some shady stuff and this keeps the public focused on him in a positive light. Its worth it for him just for PR, really.

The problem with this kind of attitude is that you only have to be wrong once. And I don't think Musk actually knows where the limit is.

DarkRoast posted...

The problem with this kind of attitude is that you only have to be wrong once. And I don't think Musk actually knows where the limit is.

Once again, I absolutely agree with you.

Lmao

DarkRoast posted...

Thing is, it's not just "walk away and pay $1B." It's basically the penalty he has to pay IF he literally has no way to buy the company (essentially, if he couldn't come up with the money / couldn't get the credit). He can't actually just walk away and pay it.

If all he had to do to leave the contract was pay $1B he would've done it a month or so ago.

Twitter has him by the balls on several issues, but the biggest one is that he signed several clauses that essentially said he wouldn't hold them liable even if the information they gave him was false. So to turn around and claim that Twitter has more bots than he expected would have already been a flimsy excuse, but to also be bound by this clause means he's flailing.

Right, I'm just saying to the "It should be a percentage of your wealth" people that that number was negotiated, rather than being a statutory thing.

Eh, it is worth a shot to step away from the deal with Twitter & try to renegotiate if you are Elon. $44 billion is a absurd amount of money for a company as grossly unprofitable as Twitter, so you may as well try to assert that Twitter misrepresented thier position when making the deal to try to get some of the price taken off in court or out. Who knows how good of a chance you have of accomplishing this, but there is limited downside and a large amount of upside.

DragonClaw01 posted...

Eh, it is worth a shot to step away from the deal with Twitter & try to renegotiate if you are Elon. $44 billion is a absurd amount of money for a company as grossly unprofitable as Twitter, so you may as well try to assert that Twitter misrepresented thier position when making the deal to try to get some of the price taken off in court or out. Who knows how good of a chance you have of accomplishing this, but there is limited downside and a large amount of upside.

It is an absurd amount. It's also the offer he not only made, but contractually agreed to pay. And as for "misrepresented their position" he actually waived his right to that argument in the contract lol. He made a huge mistake and his ego just won't let him acknowledge it.

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Don't forget that he wants to re-negotiate a contract he already signed because he's concerned about a thing his contract specifically said he can't use to re-negotiate.

I wonder where is Elon's best friend, Joe Rogan?

Lmao hold this L, punk

At this point, his only possible path to getting out of the contract would be to claim that he was maliciously tricked into signing it. Which would be hard to do considering he approached them with the offer and contract.

Dont blame him after the number of fake accounts, bots, etc

Imagine paying full price for a bag of chips with three chips in it

Intro2Logic posted...

Oh so now he knows how to pull out

Oh snap!

DarkRoast posted...

Don't forget that he wants to re-negotiate a contract he already signed because he's concerned about a thing his contract specifically said he can't use to re-negotiate.

That is actually incorrect. He never waived his rights to review the information. It was a public rumor, but never written in the actual contract. Elon's lawyers are stating that Twitter is in breach of the contract because Twitter misrepresented the user data, namely the bot figures & did not give Elon the proper access to thier systems to verify it himself (they gave him less access than most high end customers) & because of this misrepresentation the valuation of the company was overvalued. To me it does seem to be a bit of weaseling himself out of the contract, but it is pretty bad that Twitter was not giving him the proper tools to evaluate the company even after requested for nearly two months. I mean the dude is paying 44 billion dollars for your company why aren't you giving him the highest access, unless you have something to hide.

DragonClaw01 posted...

That is actually incorrect. He never waived his rights to review the information. It was a public rumor, but never written in the actual contract. Elon's lawyers are stating that Twitter is in breach of the contract because Twitter misrepresented the user data, namely the bot figures & did not give Elon the proper access to thier systems to verify it himself (they gave him less access than most high end customers) & because of this misrepresentation the valuation of the company was overvalued. To me it does seem to be a bit of weaseling himself out of the contract, but it is pretty bad that Twitter was not giving him the proper tools to evaluate the company even after requested for nearly two months. I mean the dude is paying 44 billion dollars for your company why aren't you giving him the highest access, unless you have something to hide.

https://nymag.com/intelligencer/2022/07/elon-musk-and-the-worlds-biggest-case-of-buyers-remorse.html

I get what you're saying, but it all blows up immediately by the fact that he was responsible for due diligence (not Twitter) because he was the one who made the offer. That's not even something that has be "waived" because it's something you work out BEFORE you sign a purchase contract. You can't just go up to a company and say "I'll buy you for $" and then turn around and claim that the company led you on.

The way you handle not having enough information about the company you're potentially buying is by not signing the contract until you have that information.

Bloomberg's Matt Levine summarizes it thusly:

https://gamefaqs.gamespot.com/a/user_image/0/3/4/AAeEwGAADbvC.jpg

Lordgold666 posted...

Dont blame him after the number of fake accounts, bots, etc

Imagine paying full price for a bag of chips with three chips in it

imagine making an unsolicited offer for 150% the price of a bag of chips and then complaining and trying to get a do over when the manufacturer accepts

DragonClaw01 posted...

That is actually incorrect. He never waived his rights to review the information. It was a public rumor, but never written in the actual contract. Elon's lawyers are stating that Twitter is in breach of the contract because Twitter misrepresented the user data, namely the bot figures & did not give Elon the proper access to thier systems to verify it himself (they gave him less access than most high end customers) & because of this misrepresentation the valuation of the company was overvalued. To me it does seem to be a bit of weaseling himself out of the contract, but it is pretty bad that Twitter was not giving him the proper tools to evaluate the company even after requested for nearly two months. I mean the dude is paying 44 billion dollars for your company why aren't you giving him the highest access, unless you have something to hide.

that isn't actually what happened and the contract he signed doesn't give an exception for the excuse he crafted after having buyers remorse. this will likely end with elon getting out of the deal but he will have to pay 10 figures for the trouble

andel posted...

that isn't actually what happened and the contract he signed doesn't give an exception for the excuse he crafted after having buyers remorse. this will likely end with elon getting out of the deal but he will have to pay 10 figures for the trouble

I mean there are examples of people getting out of a contract by proving beyond any reasonable doubt that the seller deliberately misled and manipulated the buyer. But that's a tall order when you're the guy who approached the seller in the first place. And an even taller order when the seller initially tried to block the sale (poison pill, etc) and was ultimately bullied into selling because the buying price was so disproportionately high that the stock holders basically couldn't be stopped.

andel posted...

that isn't actually what happened and the contract he signed doesn't give an exception for the excuse he crafted after having buyers remorse. this will likely end with elon getting out of the deal but he will have to pay 10 figures for the trouble

It still does not give the company the right to lie about key aspects of the company. I mean, if they said nothing about it would be one thing, but if they are asserting 5% of thier users are bots, then it must reasonably be around that range. Of course, proving Twitter is incorrect on this is another matter because there are a ton of different ways of calculating this figure, so unless it is completely ridiculous and just pulled out of thier arse, then I doubt the judge will say it is incorrect.

DragonClaw01 posted...

It still does not give the company the right to lie about key aspects of the company. I mean, if they said nothing about it would be one thing, but if they are asserting 5% of thier users are bots, then it must reasonably be around that range. Of course, proving Twitter is incorrect on this is another matter because there are a ton of different ways of calculating this figure, so unless it is completely ridiculous and just pulled out of thier arse, then I doubt the judge will say it is incorrect.

It literally does not matter. He signed the contract before the validity of that information was even brought up.
It was HIS responsibility to voice those concerns BEFORE signing the contract. And that's why he's screwed.
Even if Twitter deliberately and maliciously lied about it, it still wouldn't matter because his concerns about it weren't even voiced until after it was signed.

Let's not forget that he approached Twitter, not vice versa. All due diligence is on his side, not Twitter's, and that's doubly so after the contract is signed.

To me, what is really sad is that apparently his own lawyers recommended he step back and reconsider, but he's got the same exact personality flaw Trump has where he is fundamentally incapable of processing countering viewpoints.

Well, what is the worst that happens if he continues down this path? He has to pay the money he already agreed on? Maybe he out some legal fees, but what are a few legal fees when it comes to potentially saving a couple billion.

DragonClaw01 posted...

Well, what is the worst that happens if he continues down this path? He has to pay the money he already agreed on? Maybe he out some legal fees, but what are a few legal fees when it comes to saving a couple billion.

Technically, the worst possible outcome (doubt it'll happen) is that Twitter could sue Musk for deliberately trying to destroy their company through libel and/or market manipulation. And the sky would be the limit in that scenario.

[LFAQs-redacted-quote]


It is. Especially considering the current value of Tesla stock.
Which is why he shouldn't have signed it.

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yeah, it would leverage him to the hilt considering tesla has taken a nose dive since the initial offer. if he has to follow through he risks losing control of tesla and the value of tesla continuing to free fall

The craziest part of all is that nearly all of Musk's money is in Tesla stock, and Tesla's stock is down over 30% since he announced the Twitter deal. So not only is he overpaying for Twitter already, but the money he's using isn't worth as much as it was.

44B still isn't that much money for Musk. If he wanted, he could pay it without selling a single share of Tesla or borrowing/leveraging any money.

He's an extremely impulsive baby so his buyers remorse could flip again or it's all just theatre.

Well lets see what right-wing FB has to say bout it all
https://gamefaqs.gamespot.com/a/user_image/1/1/8/AAb05zAADbwW.jpg
Yup, totally normal, no surprises here

Krojen posted...

44B still isn't that much money for Musk. If he wanted, he could pay it without selling a single share of Tesla or borrowing/leveraging any money.

He's an extremely impulsive baby so his buyers remorse could flip again or it's all just theatre.

no way he could do that. all his money is in stock, he doesn't have billions of dollars in liquidity. the original deal was structured around him getting loans against tesla shares

CE_gonna_CE posted...

Well lets see what right-wing FB has to say bout it all
https://gamefaqs.gamespot.com/a/user_image/1/1/8/AAb05zAADbwW.jpg
Yup, totally normal, no surprises here

Probably not a single person in that chain making over $75K/year. But they'll debase themselves for someone making fuck you money.

CE_gonna_CE posted...

Well lets see what right-wing FB has to say bout it all

Yup, totally normal, no surprises here

What I've learned in all of this is that Elon Musk fans are mental gymnastics all-stars.

Musk is going to buy Twitter? He's doing it! He's saving free speech! He'll own those libs for sure!
Musk might not buy Twitter? He did it! He owned Twitter! Their stocks are worthless now! Take that, Twitter!
Musk might get forced into buying Twitter? It's all part of his master plan! He's three steps ahead! Musk is a genius!

They seem to think that anything that he does is some grand, calculated scheme instead of him just being some overgrown child with way too much money who just loves attention.

dotsdfe posted...

They seem to think that anything that he does is some grand, calculated scheme instead of him just being some overgrown child with way too much money who just loves attention.

well yeah. They did the same shit with donald trump

MattcheteGuy posted...

well yeah. They did the same shit with donald trump

100% Venn diagram overlap, tbh

andel posted...

no way he could do that. all his money is in stock, he doesn't have billions of dollars in liquidity. the original deal was structured around him getting loans against tesla shares

The deal was structured around loans against Tesla shares because he didn't want to sell them for many reasons.

He has over 10B in cash now. Just one of many options would be selling some of his SpaceX equity which would easily cover the rest.

Krojen posted...

44B still isn't that much money for Musk. If he wanted, he could pay it without selling a single share of Tesla or borrowing/leveraging any money.

He's an extremely impulsive baby so his buyers remorse could flip again or it's all just theatre.

What is liquidity of assets?

ScazarMeltex posted...

What is liquidity of assets?

Liquid enough if necessary. Especially when 1/3rd is already cash.