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IIRC the original deal deadline is October 24. This leads me to believe that Musk is under some time pressure to propose something like this. He is hoping Twitt
by Zigurd 4y ago
IIRC the original deal deadline is October 24. This leads me to believe that Musk is under some time pressure to propose something like this. He is hoping Twitter agrees to this proposal and subsequently Musk would be able to blame financing falling apart for the failure to complete the deal. Twitter is right to suspect this is a ruse.
Musk's tweets that he thinks Twitter would be an "accelerant" for some vague idea of a super-app is just more smoke to obscure a cynical move. He has no clue of how to make one. There is good reason to think the whole idea of a "super app" is specific to some Asian markets.
Now Twitter must be counting all the losses Musk will take if Musk is forced to pay $54.20 per share. The settlement will be a few dollars less.
There is potential for collateral damage: If Musk is forced to sell a lot of $TSLA, it could be the tipping point where investors wonder what a realistic valuation is for a car maker that is about the same size as BMW, but is currently valued 3.5X the market cap of Toyota.