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Musk has notified Twitter that the deal is off.
He has caused tremendous damage to so many employees and investors in his latest installment of “Billionaire cares only about himself” show.
It has also recently been publicized that he is the father of twins not from his wife.
What are Trump supporters gonna do now that Truth Social is a disaster and Twitter is not going to allow Trump back?
Thank you jackk, for caring more about Trump than anyone in the room.
This is very sweet how Musk messed up Twitter. It was a well deserved smack down of the far left wing run Twitter. Beautiful. Now Twitter is begging/trying to force Musk to buy them since their value has tanked.
May all of Big Tech meet the same fate.
>>>What are Trump supporters gonna do now that Truth Social is a disaster and Twitter is not going to allow Trump back?
Don’t worry about them. They can always rely on people like you to faithfully make sure everyone knows some version of everything Trump said or did. Whether he actually said it or did it or not.
How on earth does a Musk-Twitter deal conversation start off with the main focus on Trump ?
What does Musk’s personal life have to do with it?
Do you know how common it is to back off from deals causing losses to the other side in the business world? I personally know someone who recently lost a quarter of a million dollars because he signed a contract with the government which backed out on him for political reasons so all the money he invested into getting his business ready to take on the contract was down the drain.
“I will not let anyone stop caring about Trump until he is no longer around .”
This has got to be one of the dumbest comments. Your altruism brings me to tears.Jack
Why is trump website truth social a disaster like you say?
Musk offered $44B for twitter. Stock is now 20% off from the time of the offer, that is, twitter lost $8B in value, while the break up fee is $1B. Whatever Musk’s plans are for improving Twitter, $7B is some money … So, the deal was doomed by the Biden’s market. Maybe Musk will make a lower bid, while still fighting the breakup fee.
For those who have partisan views on this, what would you do if you give a real estate offer with $1K down and then next week, price of RE goes down by 10%. Will you pay the original offer or accept $1K offer. what would be halachik considerations here? Is it an aveirah to not stand by your word, or do we say that this is a simple contract that has an option to buy or pay a penalty?
Even if truth social will be a disaster, this is how it works. Try multiple (reasonably) risky ventures, and some of them will work out. This is how American venture capitalism work and it was spectacularly working in last 30 years, leading to American internet businesses dominating the world of European/Asian business models that tend to punish risks. As the story goes – if you fail in business, German banks will not give you a penny after that. In America, you can now say that you have “experience starting businesses” and have a higher chance of getting on a new deal. Trump applied the same approach to politics, and it is up to voters whether to focus on successes or failures,
smerel,
jackk is seething at Elon Musk, who had the nerve to criticize the great economic genius, Brainless Brandon.
edited this time
Cut it out or they’ll be deleted instead
Also, Musk lost like $100 out of $300B Tesla stock due to decreased value at the same time .. The only money saved was from $8B of Tesla stock that he had to convert into cash at the time of the deal, on which he saved $1-2B – more than the $1B Twitter breakup fee.
Trump could always join the CR (:
How do you know he hasn’t yet?
“How do you know he hasn’t yet?…”
Yeah…how do you know he hasn’t been lurking here for years and posting as some Trump-hating, progressive yid suffering from acute TSD??
What Musk is saying is that from an economic (rather than social or entertainment or political) perspective, Twitter is a “scam”. Allegedly, they are lying to advertisers in order to get the advertisers to pay them big money by claiming that “fake accounts”, such as “bots” (programs that fake being users) are really users. If in fact it turns out to be true (and the matter will be litigated since Twitter will be suing Musk, and Musk will need to prove this to win the case), the owners and managers of Twitter might be facing serious criminal charges. This has nothing to do with politics, and great deal to do with how many tech businesses have been disrespecting the law of economics and accounting.
The whole “$1 Billion break up fee” and Musk wipes his hands of the deal is not at all correct due to the way this deal was structured.
Musk waived due diligence AND agreed to a “specific performance” clause which basically means that as long as his financing for the deal is still available (and since the relevant financial institutions signed commitment letters they can’t back out either) Twitter can force him to complete the deal. And since Twitter is incorporated in Delaware and since the Delaware Chancery Court has a long history of strictly enforcing “specific performance” clauses, he has almost no way out. The only way out is to prove that Twitter knew that the number of bot accounts was extremely far off of what Twitter claimed in public filings, and even that is a long shot due his waiving of due diligence. This especially true since as Matt Levine has pointed out he publicly claimed he wanted to buy it to get rid of the bot problem, so it is difficult for him to then claim that he doesn’t want to buy it because there are too many bots.
And note, Twitter’s claims about the number of bots is specifically based on “monetizeable daily active users” a term which Twitter themselves defines in their SEC filings. I would assume that even if the total number of bot accounts is higher Twitter chose a definition that best suited their needs without actually lying about the number of bot accounts.
So it doesn’t really matter what portion of twitter accounts are fake or bots. And the fact that Musk’s OWN LAWYERS in the filing to break the deal do not claim that they have evidence that there are more bots than Twitter claims. Rather they use the very curious language that “Musk BELIEVES” there are more bots. And this is after Twitter let Musk’s team have access to the “full stream” API. I know people who have access to the academc API and the amount of data there is huge but easily useable and the full stream API has even more data. Since his team of data scientists had access to the full stream and apparently couldn’t find anything then he has nothing.
Now I am sure the number of bots is far higher than 5%, but remember Twitter in their financial filings uses the very specifically defined “monetizeable daily active users” which I suspect is actually about 5%, since they created the definition which best suited their needs.
FrumStat, thanks for the explanation. I guesa Musk is not losing either way – either he can get out of the losing deal, or he can generate publicity and sympathy for himself while taking twitter on. Maybe some reverse psychology here – before twitter libs were horrified by the prospect of being accountable for their work, now they can be happy that they are forcing Musk to buy them.
I mean that he is not going to lose from his recent action – at minimum, he gets some publicity. As to twitter overall, why is he going to run into the ground? I understand when we doubt what politicians are claiming – most of them have no good track record, but Musk is a businessman with some successes, are you sure you know more than him? And if you do, I suggest you short twitter and later use earned millions to buy out YWN so that you could post anything you want. hope, you’ll remember me for good for this advise.
Now that Musk dropped out, I have a chance to buy Twitter and shut it down on Shabbos.
“And since he is going to run twitter into the ground , he is probably going to lose most of the 44 billion.”
The same was he ran Tesla into the ground?
The man is a business genius.
ujm,
He nearly ran Paypal into the ground and was forced out by the other owners. And he later on admitted that Tesla almost went bankrupt during the Model 3 rollout in 2018, most of which was due to him meddling in the manufacturing process. Tesla did survive that by the skin of its teeth but it was mostly due to some masterful financial manuevering by then CFO Deepak Ahuja. And the less that is said about Boring Company or Neuralink the better – Boring company is pretty much a bust and Neuralink is about 10 years behind the actual leaders in the field.
On the other hand Tesla is finally profitable and SpaceX has done same amazing things, though as best as anyone can tell it is probably not profitable yet.
But don’t confuse stock price with business genius. Tesla is overvalued by at least 5X and probably closer the 10X. Its meteoric rise in 2020-2021 was mostly due to hardcore fanboys of the stock plus a strong tech bull market and a lack of serious competition outside of China. The tech bull market is over, competition finally arrived outside of China and BYD is eating Tesla’s lunch in China. And it seems to me from looking at Tesla stock message boards that many of the fanboy stockholders are both heavily leveraged and were also heavily invested in crypto, and may have to sell off some of their Tesla stock soon. Because of the hardcore fanboy investor base I avoided trading in Tesla one way or the other until late 2021 when its rise halted, but since then I have made decent amount on put options.
I am not as negative on Elon as some of his biggest detractors, but he is a mixed bag who has a tendency to make overconfident snap decisions with inconsistent results.
I made no reference to any stock prices. Look at Tesla’s sales and market share. If you think it is because they lack competition, why haven’t you started a competitive business to them?
And note that my previous comment was in response to someone claiming that he’s going to run the business into the ground and lose tens of billions of dollars. I didn’t hear you challenge that ill informed comment by pointing out that, if so, why is Musk one of the richest men on the planet today.
I agree
ujm,
The claim to musk being a business genius is by your own admission based on his net worth. But approximately 2/3 of his net worth is either Tesla stock or Tesla options. His net worth is intrinsically tied to Tesla stock. And Tesla stock is absurdly overvalued at the moment. Yes Tesla sales are growing. But it is priced as if it is growing much faster than it actually is. Tesla is on track to sell approximately 1.3 million cars this year worldwide. Toyota will sell approximately 9.5 million. VW will sell around 8.7 million. So Tesla is still a relatively small player. Electric vehicles were unprofitable until the last couple of years when batteries got cheaper and new subsidies for electric cars started and restrictions on ICE cars got stricter in Europe and China. And the big auto manufacturers with a lot more production capacity and experience than Tesla were sitting around waiting for this. Now they are increasing production by a lot which also has the secondary effect of taking away Tesla’s emissions credit sales.
VW will likely produce more EV’s than Tesla worldwide in 2024. Stellantis in 2026. Toyota concentrates on Hybrids and PHEV’s rather than pure EV’s but including those (and for emissions credit and ICE restrictions they are mostly classified like electric) Toyota already produced almost 2 million in 2020 and increased that to 2.6 million in 2021. Ford F-150 Lightning easily beat Cybertruck to market. Same goes for Daimler/Freightliner eCascadia series vs Tesla Semi.
Now as to Twitter, I don’t know if Musk will drive it into the ground or not. And I suspect not but he agreed to a badly inflated price for a company worth nowhere near that much in what appears to have been an overconfident snap decision.
And the “why don’t you start a competing company” argument is completely silly. Auto manufacturing is a capital intensive business. Musk had money from his sale of his shares of Paypal when it went public.
You missed the boat. How long has Tesla been in the auto business? And how long have Volkswagen, Toyota, Ford and Daimler been in the auto business? The fact that the baby outwitted the century old firms is the point.
That the old boys network is climbing their way out of their self-dug hole is to be expected. They’re only trying to get back where they should have been long ago — before Elon Musk ate their lunch.
Musk is capricious and petulant. We need to start ignoring him more, and he needs to focus on what he does best, not make noise just because.
“and he needs to focus on what he does best, not make noise just because.“
It seems that “what he does best” is annoy and expose democrats
Jack, thanks for sharing the update from President Trump. We always count on you for sharing with us the most updated news from The Donald. 🙂
Jack: By time I get through the posts between Syag and AAQ, all my popcorn is long gone.
Glad you think it’s funny but he’s the one who tipped me off that you’re really a phoney. If you actually cared about kovod hatorah and weren’t just a troll you wouldn’t stand for half of what comes out of his mouth.
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