4 ms·

idk. the fact that the price had already sunk nearly 40% from his price over this period could clearly indicate that his assumption isn't without merit.

bryananderson 4y ago
Price changes due to macroeconomic circumstances are explicitly listed in the contract as not being grounds to get out of the deal. I’m telling you, the guy really signed an ironclad contract forcing him to pay $44B to buy Twitter.
ceejayoz 4y ago
Only if you don’t bother to take a look at the rest of the market.
donarb 4y ago
But for Musk's machinations, said stock price would not be down 40%. He caused the stock to drop.
- jimmydorry 4y ago
  I'd say the tech sector getting routed played a bigger part. It's not like Twitter dropping 40% (for any reason) is exceptional amonst all the other stocks that dropped 20-60% over the last year.
- CogitoCogito 4y ago
  I guess if public investors 100% believed Musk would pay, the stock should sit at $44 billion. I guess if Musk is forced to close or to pay equivalent damages, the value will jump back to that in the end.
  - harambae 4y ago
    Exactly. Plenty of people willing to profit off the arbitrage if he's actually going to be forced to buy twitter at the original amount. The current price ($32) reflects be probably won't.
ImPostingOnHN 4y ago
maybe if he can prove that his bot claims, and claims about twitter's willful fraud, are both true, and the reason everybody sold
quickthrowman 4y ago
If the share price is lower than $54.20, it’s because the market doesn’t believe the sale will be completed. The difference between $54.20 and the current share price represents the probability of the transaction falling through. Twitter has done nothing to impede the transaction, so any uncertainty (and thus decline in TWTR share price below $54.20) is due to the actions of the buyer, who is… Elon Musk. Therefore, Elon is responsible for any decline in the share price since the purchase agreement was signed.

bryananderson 4y ago

Price changes due to macroeconomic circumstances are explicitly listed in the contract as not being grounds to get out of the deal. I’m telling you, the guy really signed an ironclad contract forcing him to pay $44B to buy Twitter.

ceejayoz 4y ago

Only if you don’t bother to take a look at the rest of the market.

donarb 4y ago

But for Musk's machinations, said stock price would not be down 40%. He caused the stock to drop.

jimmydorry 4y ago
I'd say the tech sector getting routed played a bigger part. It's not like Twitter dropping 40% (for any reason) is exceptional amonst all the other stocks that dropped 20-60% over the last year.
CogitoCogito 4y ago
I guess if public investors 100% believed Musk would pay, the stock should sit at $44 billion. I guess if Musk is forced to close or to pay equivalent damages, the value will jump back to that in the end.
- harambae 4y ago
  Exactly. Plenty of people willing to profit off the arbitrage if he's actually going to be forced to buy twitter at the original amount. The current price ($32) reflects be probably won't.

ImPostingOnHN 4y ago

maybe if he can prove that his bot claims, and claims about twitter's willful fraud, are both true, and the reason everybody sold

quickthrowman 4y ago

If the share price is lower than $54.20, it’s because the market doesn’t believe the sale will be completed. The difference between $54.20 and the current share price represents the probability of the transaction falling through. Twitter has done nothing to impede the transaction, so any uncertainty (and thus decline in TWTR share price below $54.20) is due to the actions of the buyer, who is… Elon Musk. Therefore, Elon is responsible for any decline in the share price since the purchase agreement was signed.