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His legal team maintains Twitter is in material breach of multiple provisions of the Agreement and appears to have made false and misleading representations. h

His legal team maintains Twitter is in material breach of multiple provisions of the Agreement and appears to have made false and misleading representations. https://www.sec.gov/Archives/edgar/data/1418091/000110465922078413/tm2220599d1_ex99-p.htm https://www.sec.gov/Archives/edgar/data/1418091/000110465922...

eropple 4y ago
His legal team can maintain that the sky is a vibrant chartreuse, but that doesn't mean it's true.
- no_butterscotch 4y ago
  So what though? Is Twitter going to spend the next few years litigating this just to force someone to buy the company that doesn't want to? Elon's team can drag this on and on. What will happen to the value of Twitter's stock in the meantime? What will happen to the value of working at Twitter? It'll become a zombie company.
  - lightsandaounds 4y ago
    What will happen to the price of the stock is that it will be inflated over the "true price" by risk adjusted premium of the buyout. Stock price = "stock price without Elon owning it" + "Elons premium" * "likelihood of Elon losing the lawsuit and being forced to buy the company" That likelihood should never be less than 0, so I think this legal fight would only help the twitter stock price. I guess I am assuming that the "true price" is actually lower than what Elon offered for it.
  - tsimionescu 4y ago
    Yes, that's exactly what will happen. If Twitter were to say now "OK, let's forget this whole thing happened" the stock would drop massively: not only are they losing any chance at the $44B buyout, they are also admitting they (1) lied in their current contract, and (2) likely have huge bot issues that they would rather not litigate. The only option for Twitter to continue existing is to sue Musk for the amount he promised.
  - nmfisher 4y ago
    It's worth north of $20B to Twitter shareholders and they have an (almost) rock-solid case. You can bet your ass they're going to spend the next few years to fight for it.
ceejayoz 4y ago
Sure, but that’s bullshit. Twitter carefully couched each of this sort of statement in “we might be wrong” disclaimers. It’s not like he came up with the “they’re all bots” theory after committing.
politician 4y ago
The downvotes on this comment are the clearest evidence that people will downvote verifiable facts presented neutrally if they don’t like the facts, the people or companies involved in the fact. The karma hit at-fates-hands takes because people are irrational is collateral damage. Have an upvote.
- myko 4y ago
  The downvotes are most likely because it's a specious claim that Elon's legal team is making, not supported by fact. He waived the due diligence phase. Twitter provided his team with information. He's just trying to get out of the deal because he made an impulsive and stupid decision. Parroting the statements of his legal team without adding the context around those statements is going to garner downvotes.
  - openthc 4y ago
    Isn't the context the link to the EDGAR documents?
  - politician 4y ago
    Neutral TLDR summaries are viewed as a good thing on HN. Given the rest of these comments, the theme here is pure hate for the man.

eropple 4y ago

His legal team can maintain that the sky is a vibrant chartreuse, but that doesn't mean it's true.

no_butterscotch 4y ago
So what though? Is Twitter going to spend the next few years litigating this just to force someone to buy the company that doesn't want to? Elon's team can drag this on and on. What will happen to the value of Twitter's stock in the meantime? What will happen to the value of working at Twitter? It'll become a zombie company.
- lightsandaounds 4y ago
  What will happen to the price of the stock is that it will be inflated over the "true price" by risk adjusted premium of the buyout. Stock price = "stock price without Elon owning it" + "Elons premium" * "likelihood of Elon losing the lawsuit and being forced to buy the company" That likelihood should never be less than 0, so I think this legal fight would only help the twitter stock price. I guess I am assuming that the "true price" is actually lower than what Elon offered for it.
- tsimionescu 4y ago
  Yes, that's exactly what will happen. If Twitter were to say now "OK, let's forget this whole thing happened" the stock would drop massively: not only are they losing any chance at the $44B buyout, they are also admitting they (1) lied in their current contract, and (2) likely have huge bot issues that they would rather not litigate. The only option for Twitter to continue existing is to sue Musk for the amount he promised.
- nmfisher 4y ago
  It's worth north of $20B to Twitter shareholders and they have an (almost) rock-solid case. You can bet your ass they're going to spend the next few years to fight for it.

ceejayoz 4y ago

Sure, but that’s bullshit. Twitter carefully couched each of this sort of statement in “we might be wrong” disclaimers. It’s not like he came up with the “they’re all bots” theory after committing.

politician 4y ago

The downvotes on this comment are the clearest evidence that people will downvote verifiable facts presented neutrally if they don’t like the facts, the people or companies involved in the fact. The karma hit at-fates-hands takes because people are irrational is collateral damage. Have an upvote.

myko 4y ago
The downvotes are most likely because it's a specious claim that Elon's legal team is making, not supported by fact. He waived the due diligence phase. Twitter provided his team with information. He's just trying to get out of the deal because he made an impulsive and stupid decision. Parroting the statements of his legal team without adding the context around those statements is going to garner downvotes.
- openthc 4y ago
  Isn't the context the link to the EDGAR documents?
- politician 4y ago
  Neutral TLDR summaries are viewed as a good thing on HN. Given the rest of these comments, the theme here is pure hate for the man.