Elon Musk buys a big chunk of Twitter
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wrote on 8 Jul 2022, 22:38 last edited by
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wrote on 8 Jul 2022, 22:38 last edited by
They have a colorable argument.
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wrote on 8 Jul 2022, 22:39 last edited by
It also demonstrates how much this is really about price.
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wrote on 8 Jul 2022, 22:42 last edited by
@jon-nyc said in Elon Musk buys a big chunk of Twitter:
They have a colorable argument.
I wondered about that. His requirement that they disclose the number of "bot" or spam accounts occurred after his agreement to buy.
That might invalidate his claim.
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wrote on 8 Jul 2022, 22:42 last edited by
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract? Well, this planet, but how?
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On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract? Well, this planet, but how?
wrote on 8 Jul 2022, 22:44 last edited by@Horace said in Elon Musk buys a big chunk of Twitter:
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract?
YARLY.
One would think that the world's richest man would be able to hire the world's best lawyers.
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wrote on 8 Jul 2022, 22:45 last edited by kluurs 7 Aug 2022, 22:46
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On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract? Well, this planet, but how?
wrote on 8 Jul 2022, 22:50 last edited by jon-nyc 7 Aug 2022, 22:51@Horace said in Elon Musk buys a big chunk of Twitter:
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract? Well, this planet, but how?
In the world where every banker and securities lawyer knows that option premiums have value north of zero so don’t write free ones into contracts. In other words, this world.
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@Horace said in Elon Musk buys a big chunk of Twitter:
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract?
YARLY.
One would think that the world's richest man would be able to hire the world's best lawyers.
wrote on 8 Jul 2022, 23:02 last edited by@George-K said in Elon Musk buys a big chunk of Twitter:
@Horace said in Elon Musk buys a big chunk of Twitter:
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract?
YARLY.
One would think that the world's richest man would be able to hire the world's best lawyers.
But it’s not like the worlds best securities lawyers have been hibernating for decades waiting for Musk to hire them. Goldman Sachs, Morgan Stanley, et al work with the top firms on many simultaneous deals all the time.
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@Horace said in Elon Musk buys a big chunk of Twitter:
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract? Well, this planet, but how?
In the world where every banker and securities lawyer knows that option premiums have value north of zero so don’t write free ones into contracts. In other words, this world.
wrote on 8 Jul 2022, 23:10 last edited by Horace 7 Aug 2022, 23:11@jon-nyc said in Elon Musk buys a big chunk of Twitter:
@Horace said in Elon Musk buys a big chunk of Twitter:
On what planet is the ability for Musk to back out of this contract before closing, not unambiguously written into the contract? Well, this planet, but how?
In the world where every banker and securities lawyer knows that option premiums have value north of zero so don’t write free ones into contracts. In other words, this world.
I'm not sure what point you're addressing, (I don't think I ever made a claim about free options,) but I meant that there should presumably not be an ambiguous legal case around whether Musk can back out of this contract under these circumstances. Whatever the terms of that back out may be. I would have assumed that the terms of a party declining to close the deal, should be part of whatever contract had originally been signed.
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wrote on 8 Jul 2022, 23:59 last edited by
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wrote on 9 Jul 2022, 13:02 last edited by
@jon-nyc said in Elon Musk buys a big chunk of Twitter:
They have a colorable argument.
If they did, then there would be absolutely no need for all of the remaining documentation and procedures. Until the money and “title” changes hands, nothing is final. He COULD be held responsible for fees and penalties depending on the paperwork that they’ve already signed, but that’s the extent.
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@jon-nyc said in Elon Musk buys a big chunk of Twitter:
They have a colorable argument.
If they did, then there would be absolutely no need for all of the remaining documentation and procedures. Until the money and “title” changes hands, nothing is final. He COULD be held responsible for fees and penalties depending on the paperwork that they’ve already signed, but that’s the extent.
wrote on 9 Jul 2022, 14:30 last edited by@LuFins-Dad said in Elon Musk buys a big chunk of Twitter:
@jon-nyc said in Elon Musk buys a big chunk of Twitter:
They have a colorable argument.
If they did, then there would be absolutely no need for all of the remaining documentation and procedures. Until the money and “title” changes hands, nothing is final. He COULD be held responsible for fees and penalties depending on the paperwork that they’ve already signed, but that’s the extent.
Right the paperwork they’ve already signed and the terms of Musk backing out should be unambiguous. That’s what I found surprising.
But I suppose when sufficient money is at stake, everything can be made to seem legally ambiguous.
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@LuFins-Dad said in Elon Musk buys a big chunk of Twitter:
@jon-nyc said in Elon Musk buys a big chunk of Twitter:
They have a colorable argument.
If they did, then there would be absolutely no need for all of the remaining documentation and procedures. Until the money and “title” changes hands, nothing is final. He COULD be held responsible for fees and penalties depending on the paperwork that they’ve already signed, but that’s the extent.
Right the paperwork they’ve already signed and the terms of Musk backing out should be unambiguous. That’s what I found surprising.
But I suppose when sufficient money is at stake, everything can be made to seem legally ambiguous.
wrote on 9 Jul 2022, 17:06 last edited by@Horace said in Elon Musk buys a big chunk of Twitter:
@LuFins-Dad said in Elon Musk buys a big chunk of Twitter:
@jon-nyc said in Elon Musk buys a big chunk of Twitter:
They have a colorable argument.
If they did, then there would be absolutely no need for all of the remaining documentation and procedures. Until the money and “title” changes hands, nothing is final. He COULD be held responsible for fees and penalties depending on the paperwork that they’ve already signed, but that’s the extent.
Right the paperwork they’ve already signed and the terms of Musk backing out should be unambiguous. That’s what I found surprising.
But I suppose when sufficient money is at stake, everything can be made to seem legally ambiguous.
I could see the FTC possibly having an issue as well, but nothing to the extent that the Twitboard is claiming.
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wrote on 9 Jul 2022, 17:55 last edited by jon-nyc 7 Sept 2022, 17:56
Long and detailed analysis of Musk’s claim and how hard it would be to get them through a Delaware court.
***=Long***
click to show -
wrote on 9 Jul 2022, 18:21 last edited by
So it'll cost Musk a billion dollars to back out, or a billion dollars in legal fees to attempt to win a legal argument that he shouldn't have to pay a billion dollars to back out.
The Tesla short community was way ahead of the game on this guy's character.
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wrote on 10 Jul 2022, 00:55 last edited by
Here's a thought...
So, suppose that Musk's deal to buy Twitter falls through, and both parties walk away, none the richer and none the poorer.
Supposedly, $44B is enough to buy the platform and all of its associated assets.
Would it be beyond Musk to just build another platform to compete with Twitter? Granted, "Truth Social," like Parler and WeMe have not gotten the traction that their proponents hoped for, but with Musk's name recognition and ferocity, can this be a thing?
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Here's a thought...
So, suppose that Musk's deal to buy Twitter falls through, and both parties walk away, none the richer and none the poorer.
Supposedly, $44B is enough to buy the platform and all of its associated assets.
Would it be beyond Musk to just build another platform to compete with Twitter? Granted, "Truth Social," like Parler and WeMe have not gotten the traction that their proponents hoped for, but with Musk's name recognition and ferocity, can this be a thing?
wrote on 10 Jul 2022, 00:58 last edited by@George-K said in Elon Musk buys a big chunk of Twitter:
Here's a thought...
So, suppose that Musk's deal to buy Twitter falls through, and both parties walk away, none the richer and none the poorer.
Supposedly, $44B is enough to buy the platform and all of its associated assets.
Would it be beyond Musk to just build another platform to compete with Twitter? Granted, "Truth Social," like Parler and WeMe have not gotten the traction that their proponents hoped for, but with Musk's name recognition and ferocity, can this be a thing?
Likely not, I'd say. Many, many people have tried to make alternative social platforms. And quite a few of them have been great. But they completely failed, either because they weren't as addictive as what's presently out there, or weren't sufficiently different from what's presently out there.
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@George-K said in Elon Musk buys a big chunk of Twitter:
Here's a thought...
So, suppose that Musk's deal to buy Twitter falls through, and both parties walk away, none the richer and none the poorer.
Supposedly, $44B is enough to buy the platform and all of its associated assets.
Would it be beyond Musk to just build another platform to compete with Twitter? Granted, "Truth Social," like Parler and WeMe have not gotten the traction that their proponents hoped for, but with Musk's name recognition and ferocity, can this be a thing?
Likely not, I'd say. Many, many people have tried to make alternative social platforms. And quite a few of them have been great. But they completely failed, either because they weren't as addictive as what's presently out there, or weren't sufficiently different from what's presently out there.
wrote on 10 Jul 2022, 02:25 last edited by@Aqua-Letifer said in Elon Musk buys a big chunk of Twitter:
@George-K said in Elon Musk buys a big chunk of Twitter:
Here's a thought...
So, suppose that Musk's deal to buy Twitter falls through, and both parties walk away, none the richer and none the poorer.
Supposedly, $44B is enough to buy the platform and all of its associated assets.
Would it be beyond Musk to just build another platform to compete with Twitter? Granted, "Truth Social," like Parler and WeMe have not gotten the traction that their proponents hoped for, but with Musk's name recognition and ferocity, can this be a thing?
Likely not, I'd say. Many, many people have tried to make alternative social platforms. And quite a few of them have been great. But they completely failed, either because they weren't as addictive as what's presently out there, or weren't sufficiently different from what's presently out there.
I agree with you.
In addition, a large % of people who are on Twitter are outside the US. And outside the US, Elon Musk is not very well known, so people would not go to a new thing he started just because of his name.
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wrote on 10 Jul 2022, 11:37 last edited by