6 ms·

Sounds like a very unpleasant experience, sorry to hear. But I'm not sure it's a good precedent for this case, for two reasons: a) You were happy to settle, wh

by t_mann 4y ago

Sounds like a very unpleasant experience, sorry to hear. But I'm not sure it's a good precedent for this case, for two reasons: a) You were happy to settle, which sounds understandable. But when the stakes are $44bn and most actors on Twitter's side are but agents for Twitter shareholders, their chief concern will be not breaking their fiduciary duties if they accept anything less than the maximum amount they could get. It's a bit hard to imagine how the legal bills for seeing this through could stack up to even .1% of the purchase price ($440m), and that's nowhere close to the discount that Musk will be looking for (with good reason imho, btw). b) In your case the other party might have gotten away with dodging a court order to pay (or at least made it appear like that). That's pretty much unfathomable if you are literally the richest man on earth and live in the US.

londons_explore 4y ago
> dodging a court order to pay I'm pretty surprised musk seems to have put himself personally on the line, rather than putting 'musk acquisition project llc' as the party making the offer. If it was the latter, then everything could be arranged so there was no money in that company to pay for any lawsuits. As the worlds richest man, dividing up your liability like that into many LLC's would seem like a very important thing to do.
- dragonwriter 4y ago
  > As the worlds richest man, dividing up your liability like that into many LLC's would seem like a very important thing to do Unfortunately for Musk, when an LLC is used as a proxy for the single member without real separation, the LL part stops working as anything but (on a matter this size) a small additional speedbump rather than a shield, at the same time, it's even nominal separation makes it harder to make deals than if your hoards of assets were behind them.
watwut 4y ago
> In your case the other party might have gotten away with dodging a court order to pay (or at least made it appear like that). That's pretty much unfathomable if you are literally the richest man on earth and live in the US. It is other way around. It is way easier for rich person to get away from dodging courts then poor one. Just the fact that rich person can pay fights and layers longer, and fact that rich has it easier to retaliate so everyone is more careful not to step on their toes or do mistake.
Terretta 4y ago
> chief concern will be not breaking their fiduciary duties Let’s not forget the all the blather from Twitter board and leadership how their fiduciary duty was to not sell to Musk at this price. Cramer even claimed the board would be personally liable for accepting the deal. https://www.cnbc.com/2022/04/14/cramer-twitters-board-has-no-choice-but-to-reject-musks-offer.html https://www.cnbc.com/2022/04/14/cramer-twitters-board-has-no...
- mrtnmcc 4y ago
  Cramer's advice is a decent guide if you always take the opposite opinion.
  - coliveira 4y ago
    Yes, following that guy it is understandable why he would never be a hedge fund manager for a long time. When it comes to investing he is stupid as a brick.
    - belter 4y ago
      Hedge Fund Managers are also not the brightest flowers: "The SP 500 Index Out-performed Hedge Funds over the Last 10 Years. And It Wasn’t Even Close": https://www.aei.org/carpe-diem/the-sp-500-index-out-performed-hedge-funds-over-the-last-10-years-and-it-wasnt-even-close/ https://www.aei.org/carpe-diem/the-sp-500-index-out-performe... "How Smart Are the Smart Guys? A Unique View from Hedge Fund Stock Holdings" [PDF]: https://jgriffin.info/wp-content/uploads/2016/10/smart.pdf https://jgriffin.info/wp-content/uploads/2016/10/smart.pdf "...Hedge funds exhibit no ability to time sectors or pick better stock styles. Surprisingly, we find only weak evidence of differential ability between hedge funds. Overall, our study raises serious questions about the perceived superior skill of hedge fund managers..."
      - bush-bby 4y ago
        But that’s not the benefit of putting your money in a hedge fund at all, the benefit is hedging against losses, so that you don’t have to worry about losing money when everyone else is.
Hendrikto 4y ago
> It's a bit hard to imagine how the legal bills for seeing this through could stack up to even .1% of the purchase price ($440m) That is 1%, not .1%
- t_mann 4y ago
  You're right, my bad.

by t_mann 4y ago

londons_explore 4y ago

> dodging a court order to pay I'm pretty surprised musk seems to have put himself personally on the line, rather than putting 'musk acquisition project llc' as the party making the offer. If it was the latter, then everything could be arranged so there was no money in that company to pay for any lawsuits. As the worlds richest man, dividing up your liability like that into many LLC's would seem like a very important thing to do.

dragonwriter 4y ago
> As the worlds richest man, dividing up your liability like that into many LLC's would seem like a very important thing to do Unfortunately for Musk, when an LLC is used as a proxy for the single member without real separation, the LL part stops working as anything but (on a matter this size) a small additional speedbump rather than a shield, at the same time, it's even nominal separation makes it harder to make deals than if your hoards of assets were behind them.

watwut 4y ago

> In your case the other party might have gotten away with dodging a court order to pay (or at least made it appear like that). That's pretty much unfathomable if you are literally the richest man on earth and live in the US. It is other way around. It is way easier for rich person to get away from dodging courts then poor one. Just the fact that rich person can pay fights and layers longer, and fact that rich has it easier to retaliate so everyone is more careful not to step on their toes or do mistake.

Terretta 4y ago

> chief concern will be not breaking their fiduciary duties Let’s not forget the all the blather from Twitter board and leadership how their fiduciary duty was to not sell to Musk at this price. Cramer even claimed the board would be personally liable for accepting the deal. https://www.cnbc.com/2022/04/14/cramer-twitters-board-has-no-choice-but-to-reject-musks-offer.html https://www.cnbc.com/2022/04/14/cramer-twitters-board-has-no...

mrtnmcc 4y ago
Cramer's advice is a decent guide if you always take the opposite opinion.
- coliveira 4y ago
  Yes, following that guy it is understandable why he would never be a hedge fund manager for a long time. When it comes to investing he is stupid as a brick.
  - belter 4y ago
    Hedge Fund Managers are also not the brightest flowers: "The SP 500 Index Out-performed Hedge Funds over the Last 10 Years. And It Wasn’t Even Close": https://www.aei.org/carpe-diem/the-sp-500-index-out-performed-hedge-funds-over-the-last-10-years-and-it-wasnt-even-close/ https://www.aei.org/carpe-diem/the-sp-500-index-out-performe... "How Smart Are the Smart Guys? A Unique View from Hedge Fund Stock Holdings" [PDF]: https://jgriffin.info/wp-content/uploads/2016/10/smart.pdf https://jgriffin.info/wp-content/uploads/2016/10/smart.pdf "...Hedge funds exhibit no ability to time sectors or pick better stock styles. Surprisingly, we find only weak evidence of differential ability between hedge funds. Overall, our study raises serious questions about the perceived superior skill of hedge fund managers..."
    - bush-bby 4y ago
      But that’s not the benefit of putting your money in a hedge fund at all, the benefit is hedging against losses, so that you don’t have to worry about losing money when everyone else is.

Hendrikto 4y ago

> It's a bit hard to imagine how the legal bills for seeing this through could stack up to even .1% of the purchase price ($440m) That is 1%, not .1%

t_mann 4y ago
You're right, my bad.