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I agree there won't be any meet in the middle. Neither Musk nor Twitter want Musk to own Twitter now though. What's happening today is negotiating the break up

I agree there won't be any meet in the middle. Neither Musk nor Twitter want Musk to own Twitter now though. What's happening today is negotiating the break up fee which starts at the difference between current market cap and 54B (~22B today). The accelerated trial date put Musk on notice. The SEC may not take enforcing the rules seriously, but Delaware has made it their business to enforce the rules that make it attractive for big corps to incorporate under. I don't think this makes it to trial where Musk will get destroyed, and bet they end up settling in the ~10B range.

metadat 4y ago
Why settle for only $10B? Musk's shenanigans have resulted in significant long-term damage to Twitter in the form uncertainty and distracting Twitter from focusing on operating and growing the business (because they've changed internal policies / direction, and shared a lot of information with Musk, as per the acquisition agreement). It's only fair for mullosk to be on the hook for the full purchase or at the very least the full differential. We'll see what happens in about two months.
- rchaud 4y ago
  $10b cash will go a long way to remedying that damage. They might even not ban Musk's account as a show of goodwill. Let him continue to bloviate impotently about the evils of censorious social media.
- matwood 4y ago
  There's value in ending it sooner than 2 mos. for the reasons you bring up. I'm sure the court is also encouraging them to settle. While the court has forced transactions to complete before, I'm not so sure they want to be forcing a 54B transaction to go through. 10B would be ~$13/share that Twitter could 1-time dividend if they chose.
hef19898 4y ago
Musk got himself in between a rock and hard place here. Either he has to buy Twitter at a higly inflated price with all kinds of efdects on his Tesla shares and, maybe, even SpaceX ownership. And he looks like a bad business man. Or he vets out of the deal, has to pay billions for nothing and still looks like a bad business man. Since all his wealth is based on Tesla, and more specifically on Tesla's public perception as tech company and not a car maker, all of which in turn is based to significant extent on yhe public's perception of Musk as a genius, this change in public perception is incredibly dangerous for Musk.
- ryukoposting 4y ago
  > And he looks like a bad business man. Musk already looked like a corporate bottomfeeder to anyone who was actually paying attention to his behavior. You're right, though. Obviously, other facets of this situation were going to affect Tesla, but I hadn't really thought about the effects on Musk's reputation could impact his companies' share prices. TSLA is as much a cult of personality as it is a stock.

metadat 4y ago

Why settle for only $10B? Musk's shenanigans have resulted in significant long-term damage to Twitter in the form uncertainty and distracting Twitter from focusing on operating and growing the business (because they've changed internal policies / direction, and shared a lot of information with Musk, as per the acquisition agreement). It's only fair for mullosk to be on the hook for the full purchase or at the very least the full differential. We'll see what happens in about two months.

rchaud 4y ago
$10b cash will go a long way to remedying that damage. They might even not ban Musk's account as a show of goodwill. Let him continue to bloviate impotently about the evils of censorious social media.
matwood 4y ago
There's value in ending it sooner than 2 mos. for the reasons you bring up. I'm sure the court is also encouraging them to settle. While the court has forced transactions to complete before, I'm not so sure they want to be forcing a 54B transaction to go through. 10B would be ~$13/share that Twitter could 1-time dividend if they chose.

hef19898 4y ago

Musk got himself in between a rock and hard place here. Either he has to buy Twitter at a higly inflated price with all kinds of efdects on his Tesla shares and, maybe, even SpaceX ownership. And he looks like a bad business man. Or he vets out of the deal, has to pay billions for nothing and still looks like a bad business man. Since all his wealth is based on Tesla, and more specifically on Tesla's public perception as tech company and not a car maker, all of which in turn is based to significant extent on yhe public's perception of Musk as a genius, this change in public perception is incredibly dangerous for Musk.

ryukoposting 4y ago
> And he looks like a bad business man. Musk already looked like a corporate bottomfeeder to anyone who was actually paying attention to his behavior. You're right, though. Obviously, other facets of this situation were going to affect Tesla, but I hadn't really thought about the effects on Musk's reputation could impact his companies' share prices. TSLA is as much a cult of personality as it is a stock.