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Elon Musk and Twitter: I want to know what you think happens next?

by WarriorForum.com Administrator
8 replies
A new article on Social Media Today revisits the Musk/Twitter drama.



I mean, Elon Musk and Twitter. What a saga, right?

We all know Musk moved to terminate his $44 billion takeover offer for the app, and we kind of know why - but what's the next twist? I want your opinions.

Here's three possible outcomes:
  • Musk walks away from the deal, and pays Twitter a $1 billion break fee. Within the original terms of the deal, Musk agreed to a $1 billion charge if he opted out of the deal at any stage. That's the minimum that it would cost Musk to exit the proposal - though many have also noted that it could be difficult for Musk to abandon the deal entirely, because he waived several due diligence measures within his original proposal, in order to hasten the Twitter deal. That could see Musk held to his original $44b offer regardless of any change of heart that he might have, while there are also some legal scenarios in which Musk would be forced to pay billions in costs to Twitter if he were to end the arrangement - though the specific amount of such would have to be determined by a court. Either way, Musk pays up, then leaves Twitter behind.
  • Musk is forced to buy Twitter due to waivers in the original contract. As noted, some market watchers maintain that Musk will be forced to buy Twitter either way, due to the aforementioned waivers in the deal, though Musk's team maintains that they negotiated access and information rights within the original Merger Agreement so that they could review key data and information before financing and completing the transaction. The legalities of this aspect could become the key element of a legal push by Twitter's board, which has vowed to hold Musk to his original offer.
  • Musk agrees to buy Twitter at a lower price. Another possibility is that Musk still buys Twitter, but at a lower price point, with this latest push being a tactic to bring down the offered price. Musk's original $44b offer values Twitter at $54.20 per share (Musk, if you haven't heard, loves references to '420'), which is significantly higher than the current $37 per share that TWTR stock is trading at. Maybe, by threatening to abandon the deal, that could prompt a renegotiation, which may still see Musk become the Tweeter in chief.

Just for fun, what's your opinion?
#elon #musk #twitter
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  • Profile picture of the author Artkantos
    Originally Posted by WarriorForum.com View Post

    [LIST][*]Musk walks away from the deal, and pays Twitter a $1 billion break fee. Within the original terms of the deal, Musk agreed to a $1 billion charge if he opted out of the deal at any stage. That's the minimum that it would cost Musk to exit the proposal - though many have also noted that it could be difficult for Musk to abandon the deal entirely, because he waived several due diligence measures within his original proposal, in order to hasten the Twitter deal. That could see Musk held to his original $44b offer regardless of any change of heart that he might have, while there are also some legal scenarios in which Musk would be forced to pay billions in costs to Twitter if he were to end the arrangement - though the specific amount of such would have to be determined by a court. Either way, Musk pays up, then leaves Twitter behind.
    I am inclined to this option, I think 44B$ for Twitter is insane, not worth the economic effort, maybe he and his team have realized of that during the due diligence?
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  • Profile picture of the author Kay King
    I don't know what will happen - and neither does anyone else except perhaps Elon Musk.



    The story gives article writers something to conjecture about for weeks if not months. I would not be surprised to see this deal go through in the end but that's only my own conjecture.
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  • Profile picture of the author max5ty
    After the whistleblower just came forward, I'm thinking if Musk buys Twitter it will be for a reduced amount. Can't see him paying the original offer...but I think he will still buy...

    just my guess obviously
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  • Profile picture of the author DWolfe
    Originally Posted by WarriorForum.com View Post

    A new article on Social Media Today revisits the Musk/Twitter drama.


    Just for fun, what's your opinion?
    The writer at SMT was bored at work and had to come up with something to justify his paycheck.
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  • Profile picture of the author Haroon Ballim
    Some see Musk's reason for the Twitter offer was that it allowed him to offload Tesla shares without raising eyebrows as investors would see it as Musk's reason for selling a large chunk of his Tesla holding .

    It avoids the propect of Tesla tanking when the sale becomes public , otherwise investors would fear that something negative is happening at Tesla and sell too.
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    • Profile picture of the author WF- Enzo
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      From what I see, Musk is his usual asshat self. Money talks, right?


      Originally Posted by Haroon Ballim View Post

      Some see Musk's reason for the Twitter offer was that it allowed him to offload Tesla shares without raising eyebrows as investors would see it as Musk's reason for selling a large chunk of his Tesla holding .

      It avoids the propect of Tesla tanking when the sale becomes public , otherwise investors would fear that something negative is happening at Tesla and sell too.
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  • Profile picture of the author Mike Summers
    Twitter claimed low bot percentage was key to their business model and then wouldn't disclose data to verify claims as true. He has no requirement to buy it even though he waived his right to due diligence.

    Waiving right to due diligence isn't a legal "whoops, no backsies, you waived due dilligence clause neener, neener, neener" if fraud or misleading statements are made or if the core of the entire business valuation is in jeopardy--in this case Twitter's bot percentage--Elon isn't obligated to buy the company at that price.

    Elon's case is strong. At minimum during court Twitter will have to reveal their records.

    However, I think he may renegotiate either based on new numbers, or something else. I think he wants to own Twitter.

    Not only that, I think he wants to add a button on Twitter for people to "call a tesla" and if he can get legislation through the Tesla Will drive itself.

    The typical Tesla makes $1500 per car produced and can drive for 300,000 miles before it needs a new battery... Supposing he charges $0.50 per mile for a "tesla on demand" service, he can make $150k or 100x more per car produced... minus gas prices.

    New Teslas get 140 miles per gallon... so 300k miles is 2307 miles times $5 per miles is 11.5k off of the 150k or 130k or so. And after that the car isn't dead, the battery can be replaced And it's as good as new.

    Does $0.50 per mile make sense to have a market? Tesla will want to limit their market and lower the price when they are ready to scale. If you are spending $500 per month on a lease agreement but driving fewer than 1000 miles then it becomes cheaper to Tesla on demand. Uber charges $1 to $2 per trip before tip so the numbers work there as well.

    Elon 100xing one of his businesses is just the start... Twitter is the perfect form of communication for sattelite internet. Put apps on there and you can run it from Starlink to tesla. Test case for Mars internet. Create self driving cars via an Uber like service and you have infrustructure for the corporate semi truck deliveries. Add vehicles all over all the time and now you can operate at a lower deliver cost of products than Amazon while delivering people and materials in tesla cars. Tesla's car has to compete with the coming "Apple Car" or "I-Car" and so Elon will probably integrate apps into Twitter to make a sort of App Store to compete with Apple. Add asteroid mining and 3D printed rockets in space and boring tunnels and tesla bots and AI and you have the infrustructure to add trillions in material to the global economy on earth and quadrillions to Bezos Space factories. Then Elon can use the new Twitter based app based internet interface to connect with Tesla bots and Augmented reality /virtual reality goggles so people can work and live on Mars from Earth

    Or maybe just some of that.
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  • Profile picture of the author Kay King
    I like Elon Musk - he doesn't fit the molds...and he doesn't care.
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