4 ms·
Look's like you're being downvoted but no one is bothering to explain why. Based on other comments in this thread, your hypothesis (while interesting) might fa
by m348e912 4y ago
Look's like you're being downvoted but no one is bothering to explain why.
Based on other comments in this thread, your hypothesis (while interesting) might fall short. Apparently there is a legal stipulation that if bank financing falls through, Musk is personally on the hook to make up the difference.
If the stipulation is in place, Musk can't use the bank's failure to finance as a scapegoat for the deal falling through. He can't walk away from the deal paying a 1 billion dollar penalty, he will have to buy Twitter at the original agreed upon price.
That being said, if your hypothesis is valid and the deal falls apart due to lack of financing -- buying some put options on Twitter right now could prove to be an extremely profitable move.
- w23j 4y agoNo, the banks are committed. They can sell the debt to others, but if that fails, they just have to finance it themselves. Musk actually can get out of the deal if he doesn't have the financing. But he has the financing, because the banks signed commitment letters. These commitment letters are valid until the beginning of next year. That's why he tried to drag out the lawsuit in the hope, that deadline might be passed.