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Another hypothesis: Triggering a legal battle in the courts is a delaying technique to push out the acquisition until the economy rebounds (and Tesla and Twitte
by jp57 4y ago
Another hypothesis: Triggering a legal battle in the courts is a delaying technique to push out the acquisition until the economy rebounds (and Tesla and Twitter valuations with it), or until after the 2024 election, because Elon realized that he doesn't actually want to let Trump back onto the platform. (Perhaps because he perfers DeSantis)
- treis 4y agoIMHO this is the key point. Twitter has a strong case in court but courts usually take a long time. Probably at least a couple years for all the appeals to run their course. And at any time during that process Elon can decide that he actually wants Twitter and complete the transaction. It's a huge distraction for Twitter and probably won't be worth it in the long run. I expect a settlement with Elon paying some cash as a breakup fee.
- walnutclosefarm 4y agoOr, it's a feint to bring Twitter back to the bargaining table to lower the price outright. I'd lay odds that Musk is betting Twitter needs a buyer enough to prefer a better deal (for Musk) to a cash settlement that left them still looking for a buyer.
- usefulcat 4y ago> Elon realized that he doesn't actually want to let Trump back onto the platform I'm not buying that; it's not like he couldn't just change his position on a whim. It certainly wouldn't be the first time.
- inglor_cz 4y agoWhat about interim inflation? The US isn't used to high inflation, so inflation is often not baked into contracts. But we are possibly facing a period of high inflation. Those 44 billion USD may be worth a lot less in 2024 or 2025.