5 ms·
I have very little context here. It seems the general sentiment in the comments is that this attempt to get out of the merger agreement will fail and that Musk
by r3trohack3r 4y ago
I have very little context here. It seems the general sentiment in the comments is that this attempt to get out of the merger agreement will fail and that Musk will be forced to follow through with the purchase of Twitter. At the current rate Twitter is trading at, Musk will be paying roughly 50% over market value to acquire the company.
So a question: if you believe Musk will still purchase Twitter at an inflated price, are there any good reasons for not purchasing Twitter stock? In other words, Musk has offered to give you $54.20 per share, and you can purchase those shares for $36.81 at the time of this comment. If folks are confident that this trade will go through, isn't it a quick way (relative to 8% YoY) to 1.5x your investment?
- ceejayoz 4y agoThere’s a chance Twitter accepts 5-10B in exchange for dropping their objections to the end of the merger.
- peanuty1 4y agoWhy would they take a 5B settlement when they have legal grounds to force the deal through for 44B?
- CogitoCogito 4y agoIn theory accepting 44B minus the current market value as a settlement is equal in value to buying it 44B (though I'm sure many large investors might prefer the cash and cash out of Twitter entirely). But yeah 5B wouldn't cut it. Though settling for 5B or 10B or something under the true worth might be worth it if Twitter thinks there's a chance they won't win.
- ceejayoz 4y agoBecause there’s always the chance you lose in court, and years worth of nasty litigation is distracting and unfun.
- sjs7007 4y agoSmall correction, he'll be paying 50% over market value, not 150% more.
- morelisp 4y agoHe could be paying effectively 150% more, right now the presence of the offer is propping up the stock - we have no real idea how far Twitter might have fallen if left to its own devices.