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The $1b isn't a fee for backing out. There is no backing out, the deal is signed, it's a binding contract. Musk not only waived due diligence, he also agreed h
by fooey 4y ago
The $1b isn't a fee for backing out. There is no backing out, the deal is signed, it's a binding contract.
Musk not only waived due diligence, he also agreed he cannot dispute a "Specific Performance" argument from Twitter forcing him to complete the purchase against his will.
The $1b fee was in the case that a 3rd party, like the SEC, killed the deal and it was one of the parties fault it happened.
- camjohnson26 4y agoYep, he didn’t waive due diligence he signed a contract to buy the company, impulsively and as a terrible business decision. Tech stocks crashed and now he’s holding the bag and lost funding to do the deal. While Musk’s net worth is high, he’s relatively illiquid, and 50 billion is a lot of money. Look what happened to Tesla stock when he started selling at the end of last year. It’s unclear why Musk bought Twitter, but given his history of getting into petty spats that a CEO should be above, it seems very unlikely that it was altruistic. I wouldn’t be surprised if the only reason for buying it was to shutdown the criticism he’s been frequently the target of the platform. Add to it his political fights, recent news that he’s fathered 9 children with 3 women, one of whom is his subordinate, fights with regulators, and news that he may have requested an erotic massage from another employee, and Musk’s behavior looks less and less befitting of a CEO, no matter how well the stock has done under his leadership.
- toomuchtodo 4y agoAccountability has a cost, and it’ll be a sight to be seen if a Delaware chancery court is what applies some accountability to someone deeply unfamiliar with it.