4 ms·

Elon isn't going to win any legal case over fraud, his best outcome is to (1) drag a case out for a long time before paying something substantial, with the cost

Elon isn't going to win any legal case over fraud, his best outcome is to (1) drag a case out for a long time before paying something substantial, with the cost that (2) nobody will ever trust Elon Musk in any major business transaction again. Better to find another partner than risk Elon Musk inventing fraud allegations and blowing you up.

MR4D 4y ago
Im thinking a bit more outside a straight fight. Think creatively for a second - class action lawsuits, SEC investigations, etc. Elon won’t even have to fight the battle let alone win it. Others may (note “may”, not “will”) do it for him. EDIT: Here’s one finding on fraud in an M&A transaction that also adds to Elon’s leverage: https://www.huntonak.com/en/insights/de-court-addresses-fraud-claims-in-manda-no-recourse-transaction.html https://www.huntonak.com/en/insights/de-court-addresses-frau...
- monkeydreams 4y ago
  Elon's conduct and prior tweets will likely come back to bite him if a) Twitter can demonstrate Elon had already assumed a level of bot activity on Twitter and b) that he knew this prior to making his offer. If my memory serves me I think Elon has previously commented negatively on Twitter's management of bot accounts. This, combined with Elon's apparent lack of willingness to engage in a professional and appropriate manner (i.e. his willingness to publicly disparage Twitter during negotiations and closure, and to respond to what appear to be good-faith responses with childish responses like poop emojis) along with his past behaviour, suggest to me that a judge might find it difficult to believe that Elon entered into the purchase contract in good faith and instead might find it easier to believe that he was entering into the agreement in order to extract value from Twitter at Twitter's expense.
moralestapia 4y ago
Yup, I think Musk has a lot more to lose here than Twitter. I don't sympathize with Twitter, at all, I truly hope it disappears one day. But this is a bit too much for Musk. The pedo tweet, the "funding secured" incident, then this, coupled with his erratic behavior overall. No one would ever trust or want to do business with him again. Btw, he's not screwing up just Twitter, but also all other banks and investors that went along with this bid. Musk is rich but he's not "40B in cash" rich, next time he goes to Morgan Stanley or any of the big banks asking for leverage he won't be as well received.
- deleted 4y ago
  [deleted]

MR4D 4y ago

Im thinking a bit more outside a straight fight. Think creatively for a second - class action lawsuits, SEC investigations, etc. Elon won’t even have to fight the battle let alone win it. Others may (note “may”, not “will”) do it for him. EDIT: Here’s one finding on fraud in an M&A transaction that also adds to Elon’s leverage: https://www.huntonak.com/en/insights/de-court-addresses-fraud-claims-in-manda-no-recourse-transaction.html https://www.huntonak.com/en/insights/de-court-addresses-frau...

monkeydreams 4y ago
Elon's conduct and prior tweets will likely come back to bite him if a) Twitter can demonstrate Elon had already assumed a level of bot activity on Twitter and b) that he knew this prior to making his offer. If my memory serves me I think Elon has previously commented negatively on Twitter's management of bot accounts. This, combined with Elon's apparent lack of willingness to engage in a professional and appropriate manner (i.e. his willingness to publicly disparage Twitter during negotiations and closure, and to respond to what appear to be good-faith responses with childish responses like poop emojis) along with his past behaviour, suggest to me that a judge might find it difficult to believe that Elon entered into the purchase contract in good faith and instead might find it easier to believe that he was entering into the agreement in order to extract value from Twitter at Twitter's expense.

moralestapia 4y ago

Yup, I think Musk has a lot more to lose here than Twitter. I don't sympathize with Twitter, at all, I truly hope it disappears one day. But this is a bit too much for Musk. The pedo tweet, the "funding secured" incident, then this, coupled with his erratic behavior overall. No one would ever trust or want to do business with him again. Btw, he's not screwing up just Twitter, but also all other banks and investors that went along with this bid. Musk is rich but he's not "40B in cash" rich, next time he goes to Morgan Stanley or any of the big banks asking for leverage he won't be as well received.

deleted 4y ago
[deleted]