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Anybody care to speculate on the chance that Twitter forces their sale to him, and then TSLA goes down far enough that Musk gets a margin call on the loan he's

Anybody care to speculate on the chance that Twitter forces their sale to him, and then TSLA goes down far enough that Musk gets a margin call on the loan he's using to finance the purchase, and he loses everything? Or at least half of everything?

javajosh 4y ago
I think it's a very high likelihood. Why? Because Musk is idea-driven and doesn't really care about money, so he is the perfect person to harness with financial and legal obligation, because he will continue to pull no matter what. Sure it's slavery with extra steps, plus so many people hate Musk there's not even a cultural downside!
- Swenrekcah 4y ago
  Wait a minute.. Are you suggesting it’s slavery to hold a billionaire businessman to his contracts?
  - formerkrogemp 4y ago
    > Sure it's slavery with extra steps, plus so many people hate Musk there's not even a cultural downside! Musk is a slave? Best conspiracy theory I've heard this month.
  - javajosh 4y ago
    I'm just saying his counter-parties have good reason to go for blood, because he's got a lot of it .
- Marazan 4y ago
  He doesn't care about money which is why he complains about taxes all the time?
- tyrfing 4y ago
  After you have a binding deal like the one he signed, it's very hard to get out of it. Being forced to complete the deal anyway has precedent, like 2 years ago when LVMH tried to back out of their Tiffany deal due to Covid. https://www.law360.com/articles/1324006/tiffany-lvmh-lower-merger-price-to-15-8b-settle-dispute https://www.law360.com/articles/1324006/tiffany-lvmh-lower-m...
snarf21 4y ago
Go read Matt Levine's latest .. He already massively changed the part that is margin, etc. because of the huge drop in TSLA price.
f0xJtpvHYTVQ88B 4y ago
Musk is no longer funding a portion of the deal with a margin loan. https://fortune.com/2022/05/25/elon-musk-equity-component-twitter-bid/ https://fortune.com/2022/05/25/elon-musk-equity-component-tw...
- itsoktocry 4y ago
  It's semantics. He doesn't have the cash, so one way or another he's leveraging up.
  - JumpCrisscross 4y ago
    > He doesn't have the cash, so one way or another he's leveraging up He's illiquid, not insolvent. Selling equity in Twitter or selling his equity in Tesla would be two ways to gain liquidity without leverage.
gruez 4y ago
Why would twitter "force their sale to him"? My impression is that either side can back out by paying $1B
- paxys 4y ago
  That is incorrect. The $1B fee only applies if the deal cannot close due to factors outside of Twitter or Elon's control (like being vetoed by antitrust regulators), and it only goes out of the buyer's pocket. Neither party can just choose to back out.

javajosh 4y ago

I think it's a very high likelihood. Why? Because Musk is idea-driven and doesn't really care about money, so he is the perfect person to harness with financial and legal obligation, because he will continue to pull no matter what. Sure it's slavery with extra steps, plus so many people hate Musk there's not even a cultural downside!

Swenrekcah 4y ago
Wait a minute.. Are you suggesting it’s slavery to hold a billionaire businessman to his contracts?
- formerkrogemp 4y ago
  > Sure it's slavery with extra steps, plus so many people hate Musk there's not even a cultural downside! Musk is a slave? Best conspiracy theory I've heard this month.
- javajosh 4y ago
  I'm just saying his counter-parties have good reason to go for blood, because he's got a lot of it .
Marazan 4y ago
He doesn't care about money which is why he complains about taxes all the time?
tyrfing 4y ago
After you have a binding deal like the one he signed, it's very hard to get out of it. Being forced to complete the deal anyway has precedent, like 2 years ago when LVMH tried to back out of their Tiffany deal due to Covid. https://www.law360.com/articles/1324006/tiffany-lvmh-lower-merger-price-to-15-8b-settle-dispute https://www.law360.com/articles/1324006/tiffany-lvmh-lower-m...

snarf21 4y ago

Go read Matt Levine's latest .. He already massively changed the part that is margin, etc. because of the huge drop in TSLA price.

f0xJtpvHYTVQ88B 4y ago

Musk is no longer funding a portion of the deal with a margin loan. https://fortune.com/2022/05/25/elon-musk-equity-component-twitter-bid/ https://fortune.com/2022/05/25/elon-musk-equity-component-tw...

itsoktocry 4y ago
It's semantics. He doesn't have the cash, so one way or another he's leveraging up.
- JumpCrisscross 4y ago
  > He doesn't have the cash, so one way or another he's leveraging up He's illiquid, not insolvent. Selling equity in Twitter or selling his equity in Tesla would be two ways to gain liquidity without leverage.

gruez 4y ago

Why would twitter "force their sale to him"? My impression is that either side can back out by paying $1B

paxys 4y ago
That is incorrect. The $1B fee only applies if the deal cannot close due to factors outside of Twitter or Elon's control (like being vetoed by antitrust regulators), and it only goes out of the buyer's pocket. Neither party can just choose to back out.