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We are the largest perennially unprofitable company to ever exist. The richest guy in the world offered to invest a fifth of his net worth into the gamble of tu

by hajile 5y ago

We are the largest perennially unprofitable company to ever exist. The richest guy in the world offered to invest a fifth of his net worth into the gamble of turning our company profitable while making our shareholders a massive profit. Instead, we poisoned the system knowing that the stock is all but guaranteed to tank massively reducing our market cap and hurting our ability to take out still more loans to continue our unprofitable venture. But we're holding true to our other nebulous values. They'll have a very compelling argument.

tsimionescu 5y ago
To prove a breach of fiduciary duty, you generally have a very high burden of evidence, unless you can show some conflict of interest or obvious lack of deliberation. Otherwise, the business judgement rule is applied, where the presumption is that the directors acted in good faith, and you would essentially have to prove that it is impossible for Twitter stock to grow beyond the current offer.
- hajile 5y ago
  What answer could they give for their actions that isn't immediately disprovable garbage? Do you really think that discovery would show that this was all in good faith? I'd bet heavily that a lot of ideological discussions would be disclosed. As that is completely contradictory to what Twitter claims is their goal, bad faith would be the only remaining option.
  - tsimionescu 5y ago
    I would bet that no such ideological grounds would be found in discovery, even if it were true, unless the board are complete morons to discuss such things over email. Instead, it is easy to expect they would discuss the sincerity of Musk's offer (the chance that they may accept it only for it to be retracted, as happened with the board membership offer), the plausibility of him having the required financing, the stock price today vs 6 months ago compared to the offer, and similar business discussions. I also don't personally believe this is an ideological battle at all - it's much more likely to be a financial manouever or simple ego-driven ambition by Musk.
PaulDavisThe1st 5y ago
> The richest guy in the world offered to invest a fifth of his net worth into the gamble of turning our company profitable That's his publically stated claim. Whether that's what is really going on is another question.

by hajile 5y ago

tsimionescu 5y ago

To prove a breach of fiduciary duty, you generally have a very high burden of evidence, unless you can show some conflict of interest or obvious lack of deliberation. Otherwise, the business judgement rule is applied, where the presumption is that the directors acted in good faith, and you would essentially have to prove that it is impossible for Twitter stock to grow beyond the current offer.

hajile 5y ago
What answer could they give for their actions that isn't immediately disprovable garbage? Do you really think that discovery would show that this was all in good faith? I'd bet heavily that a lot of ideological discussions would be disclosed. As that is completely contradictory to what Twitter claims is their goal, bad faith would be the only remaining option.
- tsimionescu 5y ago
  I would bet that no such ideological grounds would be found in discovery, even if it were true, unless the board are complete morons to discuss such things over email. Instead, it is easy to expect they would discuss the sincerity of Musk's offer (the chance that they may accept it only for it to be retracted, as happened with the board membership offer), the plausibility of him having the required financing, the stock price today vs 6 months ago compared to the offer, and similar business discussions. I also don't personally believe this is an ideological battle at all - it's much more likely to be a financial manouever or simple ego-driven ambition by Musk.

PaulDavisThe1st 5y ago

> The richest guy in the world offered to invest a fifth of his net worth into the gamble of turning our company profitable That's his publically stated claim. Whether that's what is really going on is another question.