Would Twitter become better or worse if Musk controlled it?

If Musk ends up controlling Twitter, that would make Twitter:

  • better

    Votes: 17 36.2%
  • worse

    Votes: 30 63.8%

  • Total voters
    47

Gorbles

Load Balanced
Joined
Nov 24, 2014
Messages
8,125
Location
UK
BBC mussing on why Musk may be making a thing about the bots:

If either party in the Twitter deal walks away now, there's a $1bn termination fee.
That may sound like small change to a multi-billionaire - although Mr Musk maintains he is asset-rich rather than cash-rich - but it perhaps gives him leverage to successfully shave a few billion off the offer price, because $1bn is not small change to Twitter and its shareholders.
Does anyone know what this means? I would have assumed it means that if Musk "walks away" from the deal over the bot count he would have to pay twitter 1bn, but then the next bit does not make sense.
It reads as though the termination fee applies to both parties.

Of note, he was also playing games before the bid was accepted, Tweeting that he'd do something about the bots if successful. To make that now contingent on the deal going through, really makes it seem like a stock inflation scheme.
 

Samson

Deity
Joined
Oct 24, 2003
Messages
13,754
Location
Cambridge

The_J

Say No 2 Net Validations
Administrator
Supporter
Joined
Oct 22, 2008
Messages
37,443
Location
DE/NL/FR
No, I think this is the wrong interpretation.
Elon hopes to reduce the price for the shares by this. If now Twitter says it's not good enough anymore, and they cancel, then good for him (well, his money).
But if it still is, he saves money on the shares. Win-win situation for him.
 

Samson

Deity
Joined
Oct 24, 2003
Messages
13,754
Location
Cambridge
No, I think this is the wrong interpretation.
Elon hopes to reduce the price for the shares by this. If now Twitter says it's not good enough anymore, and they cancel, then good for him (well, his money).
But if it still is, he saves money on the shares. Win-win situation for him.
Surely offering less money is effectively walking away from the deal? Or else he could offer 1c, and if they do not accept they are walking away from the deal.
 

Birdjaguar

Hanafubuki
Super Moderator
Supporter
Joined
Dec 24, 2001
Messages
48,475
Location
Albuquerque, NM
Musk can certainly afford the $1 billion to get out of a deal he changes his mind on. Maybe he can negotiate a lower price over bots, but I don't think that's a real issue. I think he is just getting cold feet. His deal put him in the news and got everyone in a tizzy. The billion dollar cost is far better than getting caught up in a losing deal he will regret later. Because Musk's wealth is mostly tied up in Tesla Twitter stock, he would likely have to sell some to get the cash for the walk away price. That might depress the share price.

The penalty only applies to Musk and only if he walks.
 
Last edited:

Birdjaguar

Hanafubuki
Super Moderator
Supporter
Joined
Dec 24, 2001
Messages
48,475
Location
Albuquerque, NM
Fixed.
 

amadeus

Hey Now!
Joined
Aug 30, 2001
Messages
37,770
Location
Shady Rest
I’ve heard speculation that Musk only floated the idea of buying Twitter as a facade to sell off Tesla stock and not raise eyebrows, but that seems implausible to me: I believe the sale of stock by company insiders is regulated by the SEC, though how thorough that is I can’t say for certain.

Maybe Musk has been reading my posts and agrees that forty billion dollars, more money than all of us posting here have or will ever have combined, is probably a lot of money to spend on a bulletin board system.
 

cardgame

Obsessively Opposed to the Typical
Joined
Apr 1, 2009
Messages
15,063
Location
Misery
I’ve heard speculation that Musk only floated the idea of buying Twitter as a facade to sell off Tesla stock and not raise eyebrows, but that seems implausible to me: I believe the sale of stock by company insiders is regulated by the SEC, though how thorough that is I can’t say for certain.

Without giving any credence to the idea, which I am hearing here now for the first time, Musk is not new to openly and publicly violating SEC law :lol:
 

amadeus

Hey Now!
Joined
Aug 30, 2001
Messages
37,770
Location
Shady Rest
Without giving any credence to the idea, which I am hearing here now for the first time, Musk is not new to openly and publicly violating SEC law :lol:
On the one hand, it seems hard to believe that Musk would do something so blatant in inviting scrutiny.

On the other, it seems entirely plausible that he would try something so blatant.

Letting him buy and sell stocks is letting the fox into the nuthouse. Er, henhouse.
 

Lexicus

Deity
Joined
Aug 28, 2007
Messages
27,645
Location
Sovereign State of the Have-Nots
On the one hand, it seems hard to believe that Musk would do something so blatant in inviting scrutiny.

On the other, it seems entirely plausible that he would try something so blatant.

https://www.sec.gov/news/press-release/2018-226

tl;dr on this is Musk already committed improper market manipulation via Tweet so it is not at all hard to believe that Musk would engage in quite blatant criminality.
He is, after all, a criminal.
 

Kyriakos

Creator
Joined
Oct 15, 2003
Messages
66,999
Location
The Dream
I also happened to see a post of his - because it was trending - where he was crying that all attacks against him are political and ultimately are because he wants to protect people's freedom and right to speech.

If people weren't so greedy, they'd have avoided making the decision to even discuss selling twitter to him.
 

Hygro

soundcloud.com/hygro/
Joined
Dec 1, 2002
Messages
24,754
Location
California
Thank God.
 

Lexicus

Deity
Joined
Aug 28, 2007
Messages
27,645
Location
Sovereign State of the Have-Nots
So in addition to being a criminal, Musk is also a pathetic loser with no follow-through
 
Top Bottom