3 ms·
This part is an informed speculation: He does not seem interested because of several factors. If Whatsapp was valued $19B few years ago, Twitter has a much hig
by srvmshr 4y ago
This part is an informed speculation: He does not seem interested because of several factors.
If Whatsapp was valued $19B few years ago, Twitter has a much higher internet footprint. Plus it serves ads unlike Whatsapp. I would bet Twitter valuation in $45±5B is a decent number in 2022. Problem is Musk doesn't want to cough up that money even though he's talked big - and/or borrow against $TSLA which would make him give up more shares than he imagined. The correction is his self-corrective step. The realization has come tad late, after his public song & dance about how he wants to "buy & unlock the potential of Twitter".
You don't drum up investor expectations, then publicly trash & diss them questioning their credibility. That's the role of due diligence. Companies negotiate, go over finances & relevant details in diligence check - and then talk to media (or not if you aren't happy to go ahead).
Musk basically has broken all norms: He promised loftily he'd buy, even went on a TED-styled talk show event where he unequivocally told how interested he is. $TSLA dips over concerns, market trends downwards - that gets our infantile free-speech champion to make increasingly harder requests to Aggrawal & co., before he wants to proceed further. When Twitter cannot reasonably fulfill his near-impossible requests, he claims in lay speak "Material Adverse effect", which implies he is being forced to buy from Twitter when the latter knows it is false/lossmaking bargain & shifting the onus of this drama to Twitter board.
If you're to pick the details of the story, it makes you wonder whether its pure luck that a fickle man like Musk is owning two superb engineering companies or has he hoodwinked everyone to think like that. But I feel he tries too hard to be something between Steve Jobs & Tony Stark