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Second thoughts, absolutely, but also hell-or-high-water contracts that require MAEs to break, and Musk has been notably unsuccessful in making that argument (h

Second thoughts, absolutely, but also hell-or-high-water contracts that require MAEs to break, and Musk has been notably unsuccessful in making that argument (hence where we are now!). Gonna be a lot of blood on the floor when folks have to take the writedown on this.

swores 4y ago
Musk failed to prove a material adverse effect by Twitter. But if his investors wanted to get out of their contracts, they might have legal standing (IANAL), or at least enough threat of it to be allowed out of the contract by Musk to avoid more court battles, based on the fact that he has caused MAE... After all, there is an open court case of Twitter v Musk (separate to Musk v Twitter) in which Twitter claimed: "Since signing the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its share price." and "Musk’s strategy is also a model of bad faith. While pretending to exercise the narrow right he has under the merger agreement to information for “consummation of the transaction,” Musk has been working furiously—albeit fruitlessly—to try to show that the company he promised to buy and not disparage has made material misrepresentations about its business to regulators and investors. He has also asserted, falsely, that consummation of the merger depends on the results of his fishing expedition and his ability to secure debt financing." (Copied from the legal case Twitter filed - https://corpgov.law.harvard.edu/2022/07/14/twitter-vs-musk-the-complaint/ https://corpgov.law.harvard.edu/2022/07/14/twitter-vs-musk-t... )
- shapefrog 4y ago
  Surely someone who committed a billion can just tell him they refuse because the platform has no users and is 99% bots Please if you are a bored billinaire that got suckered into this, take it all the way to trial. Then in the closing arguments "its just a prank bro"
  - swores 4y ago
    Would be very entertaining for us! But probably a bad idea for the investors considering how tightly they've agreed https://news.ycombinator.com/item?id=33089373 https://news.ycombinator.com/item?id=33089373

swores 4y ago

Musk failed to prove a material adverse effect by Twitter. But if his investors wanted to get out of their contracts, they might have legal standing (IANAL), or at least enough threat of it to be allowed out of the contract by Musk to avoid more court battles, based on the fact that he has caused MAE... After all, there is an open court case of Twitter v Musk (separate to Musk v Twitter) in which Twitter claimed: "Since signing the merger agreement, Musk has repeatedly disparaged Twitter and the deal, creating business risk for Twitter and downward pressure on its share price." and "Musk’s strategy is also a model of bad faith. While pretending to exercise the narrow right he has under the merger agreement to information for “consummation of the transaction,” Musk has been working furiously—albeit fruitlessly—to try to show that the company he promised to buy and not disparage has made material misrepresentations about its business to regulators and investors. He has also asserted, falsely, that consummation of the merger depends on the results of his fishing expedition and his ability to secure debt financing." (Copied from the legal case Twitter filed - https://corpgov.law.harvard.edu/2022/07/14/twitter-vs-musk-the-complaint/ https://corpgov.law.harvard.edu/2022/07/14/twitter-vs-musk-t... )

shapefrog 4y ago
Surely someone who committed a billion can just tell him they refuse because the platform has no users and is 99% bots Please if you are a bored billinaire that got suckered into this, take it all the way to trial. Then in the closing arguments "its just a prank bro"
- swores 4y ago
  Would be very entertaining for us! But probably a bad idea for the investors considering how tightly they've agreed https://news.ycombinator.com/item?id=33089373 https://news.ycombinator.com/item?id=33089373