5 ms·
Do they always have the option of settling at any point in the process? Like if Musk said "$20 billion penalty but I don't buy the company", I assume they'd say
by suzzer99 4y ago
Do they always have the option of settling at any point in the process? Like if Musk said "$20 billion penalty but I don't buy the company", I assume they'd say yes? (Or substitute a bigger number if not.)
So are they just negotiating at this point if Musk has a penalty number he's willing to pay?
- jonathankoren 4y agoTwitter and Musk already agreed to a 1 billion dollar penalty. He’s trying to get out of it, even though he already waved due diligence.
- cookingrobot 4y agoThe $1B scenario doesn’t apply here. He’s on the hook for $44B.
- petesergeant 4y agoDo you have a simple and short explanation for why?
- kgwgk 4y agoThe $1bn is in case something else makes the closing impossible (a regulatory decision, for example).
- saalweachter 4y agoBecause taking a corporation private is a pain in the ass. Elon Musk signed a contract giving himself essentially no ability to back out, to force Twitter to consider his offer.
- deleted 4y ago[deleted]
- achow 4y agoGood explanation.. https://news.ycombinator.com/item?id=32027646 https://news.ycombinator.com/item?id=32027646
- ergocoder 4y agoMy bet is on this. They will just negotiate. Nobody wants to go through a lengthy legal process. I think the number will be at 5b. Because, at 5b, Twitter gets a 1y revenue for virtually no cost. Twitter doesn't want to sell to a buyer who doesn't actually want to buy. It's not good for anyone. Imagine Musk buying Twitter and starting open up exec emails knowing about the bot numbers being inaccurate.
- t_mann 4y agoNot sure. Twitter board members have a fiduciary duty towards shareholders. If they accept a lot less than they could get by simply enforcing the rules (at a comparatively negligible cost) because they don't want to look mean, I reckon there's a very high probability that they will get sued by some hedge fund.
- ergocoder 4y agoPeople keep throwing this word around... yet the board accepted the first offer from Elon with no negotiation. Nobody is suing twitter board for this. Who does that? Even new grad negotiates their offer...
- pclmulqdq 4y agoPeople with no other options take their first offer. Negotiating is for people with alternatives. My guess is that they floated the price to a lot of potential acquirers during the poison pill debacle, then they got nothing higher.
- ergocoder 4y agoNew grad with no other offers still negotiate... Not even negotiating once is just very odd.
- pclmulqdq 4y agoNew grads with no offers still try, but their only alternative is "I say no and keep looking." Twitter's board's alternative is "I say no and get sued by shareholders." Negotiation only works if you can walk away, and it's not uncommon in business deals to accept the first offer if it is generous enough.