4 ms·

Yes, he could end up negotiating a lower price. Even a tiny discount might make it all worthwhile.

• deleted 4y ago
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• ncallaway 4y ago
  It will be hard to negotiate a lower price while a lawsuit about specific performance is still open. Since Twitter has a real (not guaranteed, but not terribly unlikely) of having a court force Musk to buy Twitter at the original price, I don’t think they’d seriously consider selling at a massive discount. I could see a small haircut to the price in a settlement, so maybe that’s the angle. But… with the threat of specific performance looming, I just don’t see Twitter moving the needle on their price much.
  • kshacker 4y ago
    Real chance does not mean 100% chance. As long as there is a threat (and fear) of losing, negotiations can happen.
    • ncallaway 4y ago
      Oh, I wouldn’t say specific performance is close to 100%. I have no real basis for this, but if I had to put a number on it I’d say it’s a 40% chance (if you let me put a range I’d say between 20-80%, so I don’t have really any confidence in my guess). But if they don’t get specific performance (which gets them a good sale price, but loses them Twitter), they are very likely to get damages (maybe capped at $1B, maybe not capped at that), which gets them a decent amount of liquid assets while they don’t lose Twitter. So, I agree, there’s room to negotiate in the uncertainty of the ruling but not getting specific performance doesn’t really mean Twitter loses. The alternative to specific performance could still be a big cash payout with no loss of assets. So, I think the fear of losing for Twitter is very small. And specific performance is I think a bigger threat towards Musk than its a desirable outcome for Twitter.