4 ms·
Twitter making material representations that less than 5% of accounts as part of this deal is gross negligence on the part of the board. They may have had their
by jmyeet 4y ago
Twitter making material representations that less than 5% of accounts as part of this deal is gross negligence on the part of the board. They may have had their hands tied. To say otherwise may have contradicted statements they've made to the market and that could land the board and executives in hot water with the SEC and shareholders.
I'm not a Twitter investor so I have never looked deeply into their financials. Is this consistent with previous representations?
But it should be clear that if Musk insisted on this being part of the deal he would press them on it. Many (including myself) have long suspected a ton of Twitter activity is bot-related.
Twitter may end up owing Musk $1 billion in a breakup fee if they renege on their deal (including making material misrepresentations). This combined with the reputational damage may be a fatal blow to Twitter. And by "fatal" I mean vulnerable to a hostile takeover or forced to take an even worse acquisition deal.
I respect Musk's accomplishments with SpaceX. Everything else seems to be sussy AF. SolarCity famously was a bailout of one of his companies (SolarCity) that owed a lot of money to another of his companies (SpaceX) by yet another of his companies (Tesla). Tesla too seems to be in trouble.
Like many though I have Musk fatigue. He seems to have personally gone off the deep end. I kinda wish they'd lock him up in one of the old nuclear cities and make him build rockets away from social media.
- jcranmer 4y ago> I'm not a Twitter investor so I have never looked deeply into their financials. Is this consistent with previous representations? Yes, it very much is. And, actually, given their definitions, it's something I find highly plausible (essentially, they're saying that less than 5% of accounts that look like active daily users are bots).