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The vast majority of people playing "experts" have never engaged in any business transaction hence they don't know.
by notyourday 4y ago
The vast majority of people playing "experts" have never engaged in any business transaction hence they don't know.
- camdat 4y agoHonestly I feel its the exact opposite. Anyone whose ever purchased a home or business should rightfully have cringed at the ~35% premium Musk is paying, and doubly so once he waved due diligence. It seems like the people who are supporting this move assume Elon has some secret plan we're not privy too, but if so why would his actions be so erratic?
- sudosysgen 4y agoA 35% premium over market price for a public company isn't necessarily cringe worthy.
- BbzzbB 4y agoI'd call it ordinary. Microsoft offered (IIRC) like a 45% premium for Activision.
- TheCoelacanth 4y agoYes, the price that gets quoted for stocks is just the point that marginal shares are getting traded at. You have to pay slightly higher than that to acquire even a single share. If you actually want to acquire every single share, you always have to pay a significant premium.
- Ensorceled 4y agoI think a lot of people understand that "contractually waiving a home inspection" means you can't withdraw from a home purchase because you didn't get a home inspection. Even if you are now claiming, without proof, that the basement leaks.
- MrMan 4y agowhy the analogies? its a corporate merger, there is a vast body of practice in this area, we can just speak from experience, no need to make incorrect analogies to other unrelated areas of endeavor
- gamblor956 4y agoCorrect, and the analogy is apropos. In a corporate acquisition, the contract is law. And if a party, with billions of dollars, chooses to waive a standard provision, then the choice to waive that provision is held against them when interpreting the parties' understandings of the terms and representations that were included in the contract. In this case, Musk deliberately waived due diligence to get Twitter to accept his offer. This means, that all representations must be interpreted in the light in which they were not material to the contract and thus not grounds for withdrawing from his obligation to proceed with the purchase.
- Ensorceled 4y ago> why the analogies? its a corporate merger Because clearly everybody is having hard time understanding this ...
- farmerstan 4y agoSee, you have proven your own ignorance with your example! When you buy a home, even if you waive all contingencies, including a home inspection, if the seller fails to disclose material problems with the house, the sellers will be liable. This liability extends for years past the close of sale. So you accidentally gave a perfect counter example as to why you are wrong.
- KerrAvon 4y agoA home sale is often more complicated than that. In some places, you can buy a house “as-is,” meaning that effectively the seller is largely not on the hook as long as they didn’t egregiously misrepresent the condition of the house.