Elon Musk Wants to Terminate $44 Billion Twitter Acquisition [Updated]

[Realityck]

Musk's court date with twitter should be a lot of fun.

“crisis state of affairs for Twitter and its Board as now the corporate will fight Musk in an elongated court docket fight to recoup the deal and/or the breakup price of $1 billion at a minimal.”

 

[GMShadow]

Do we know this - the Twitter knowingly counted spam accounts as MAUs - as fact or are we just speculating here?

SEC Filing

Second, Twitter’s disclosure that it ceases to count fake or spam users in its mDAU when it determines that those users are fake appears to be false. Instead, we understand, based on Twitter’s representations during a June 30, 2022 call with us, that Twitter includes accounts that have been suspended—and thus are known to be fake or spam—in its quarterly mDAU count even when it is aware that the suspended accounts were included in mDAU for that quarter.

We'll see where this goes - and I'm not sure Elon's done trying to buy Twitter - but expect this to get ugly.

 

[FasterQuieter]

Seemed like he wasn't serious from soon after the deal was announced. He must have just changed his mind. The spambots excuse seems silly.

 

[swingerofbirch]

I don't believe his claim that Teslas will be fully self-driving by the end of 2020. Or that they will in 2018.

I do believe that the SEC found he made misleading statements and he was forced to step down as chairman of Tesla, though.

 

[TheYayAreaLiving 🎗️]

Sounds like Elon musk was just trolling 🤡 I wouldn’t be surprised if there is any lawsuit.

I would be surprised if Elon Musk tries to make an offer to Apple, Inc. 😂

 

[CWallace]

His accusations - sent to the SEC, not the internet - are strong enough to potentially bring about a shareholder revolt and investigation.

Counting banned spam accounts as MAUs is definitely done with intent to deceive.

Do we know this - that Twitter knowingly counted spam accounts as MAUs - as fact or are we just speculating here?

Musk's attorneys claim that they do, as the SEC filing GMShadow linked to attests. As for Twitter, they have said the 5% figure is an "estimate" and have noted it could be higher or lower. So they arguably have given themselves legal room to counter Musk's attorneys claim.

It will all have to wash out in the courtrooms.

 

[0092762]

This is going to get very expensive for Musk. By announcing the deal is off he triggers a billion "break-up fee" owed to Twitter that he is very unlikely to get out of.

There is also the "specific performance" clause in the agreement which allows Twitter to sue Musk in Delaware court to complete the deal. That is also generally believed to favor Twitter.

And then of course there will be inevitable lawsuits from shareholders (especially institutional ones) who stand to lose billions in Shareholder Value based on where Twitter's share price will end up versus the price Musk agreed to pay.

I thought that $1B break up fee was if the SEC terminated the deal. He is backing out himself, there is no limit to the damages he can be sued for because of it.

 

[Jumpthesnark]

Sounds like Elon musk was just trolling. I wouldn’t be surprised if there is any lawsuit.

Lawsuits plural. This whole thing is just guaranteeing work for law firms for years to come.

 

[erikkfi]

Hardly the first time Musk set tongues a-wagging for no practical or useful purpose.

 

[0092762]

Law firms liked that

Lawsuits plural. This whole thing is just guaranteeing work for law firms for years to come.

Law firms liked that.

 

[tgwaste]

I'm sure twitter's significant stock drop had nothing to do with it.

The drop was 100% because of Musk and his actions.

 

[axcess99]

Ooo. Now they get to sue each other over who owes $1B to whom for breaking it.

 

[BSben]

I am extremely pleased that he is not going forward with it, there are plenty of extremely right wing people owning media.

 

[Danfango]

LOL getting some popcorn for this. I hope the SEC tear him a new ******. I suspect this was used to liquidate stock in large quantities without tanking the inflated price so it doesn't scare off large stock holders and collapse his entire empire.

 

[Whathappened]

There is something good that's come from this though. Musk truly exposed the extreme left wing bias running the company that favors censoring opinion it doesn't like.

Not everything someone says is an opinion. Like hate speech. You try to label it as an opinion and everyone who is against it as “extreme left”, but it won’t work.

 

[GizmoDVD]

SEC Filing



We'll see where this goes - and I'm not sure Elon's done trying to buy Twitter - but expect this to get ugly.

Why? Musk WAIVED his right for due diligence. Bots or not bots this is alllll on him.

Lawyers will do Lawyer things, but he'll pay big for this one.

 

[TheYayAreaLiving 🎗️]

LOL getting some popcorn for this. I hope the SEC tear him a new ******. I suspect this was used to liquidate stock in large quantities without tanking the inflated price so it doesn't scare off large stock holders and collapse his entire empire.

Update: Twitter chairman Bret Taylor says that Twitter's board is "committed to closing the transaction" and plans to pursue legal action to enforce the agreement.

I knew this was coming. Just a matter of time. I think Elon is wrong for what he did.

 

[rpmurray]

Glad this deal appears to be falling apart. Though I don't know what he'll do to satisfy his apparently bottomless need for attention now.

He hasn't yet run naked across the stage at the Oscars.

 

[axcess99]

I'm sure twitter's significant stock drop had nothing to do with it.

Funny thing, if you had thought this was going to go through, you could have gotten a 20% return in just a couple months by buying twitter stock at any recent price once his fixed price per share paid out.

Since there isn’t much reason to think twitter was going to back out, the entire difference between the share price and the buyout price is people thinking musk would back out. Any scenario with Musk backing out was going to include him blaming them, otherwise he has a $1B penalty to pay them (which would force him to sell a lot of Tesla stock)

 

[trife]

Bozo does bozo thing.

Shocker.

 

[Danfango]

Update: Twitter chairman Bret Taylor says that Twitter's board is "committed to closing the transaction" and plans to pursue legal action to enforce the agreement.

I knew this was coming. Just a matter of time. I think Elon is wrong for what he did.

Hahaha this makes me super happy. This will be a long and interesting scandalous mess.

 

[Le0M]

My 2 cents: he will drop the deal, wait for twitter stock to go low, and make a new (much cheaper) offer.

 

[Huracan]

Wise decision. Phoney excuse that I’m sure the lawyers will argue.

The real reason is due to the significant stock market downturn after the price had been agreed.

Hope you care about my reply (I am referring to your P.S. line), because I agree with you He's cutting his losses.

 

[Naraxus]

El oh el

 

[0092762]

My 2 cents: he will drop the deal, wait for twitter stock to go low, and make a new (much cheaper) offer.

Only problem with that is he can’t “drop” the deal. He’s on the hook for the whole $44B