Quote:
Originally Posted by retiredguy123
I know that a lot of people think that Musk is a genius, but I don't. How could he even think that Twitter, which is just a website, was worth $44 billion? Why couldn't he just start his own website for almost nothing and compete with Twitter. He could even pay people to leave Twitter. And, why would he offer to buy the company for $44 billion and then ask Twitter to reveal information about their clients. That seems backwards to me. And, now he is being sued by Twitter for breach of contract. Didn't Musk have his lawyers prepare an ironclad contract, so that he couldn't be sued? The whole thing seems strange to me that a so-called business genius is involved in this mess. Just my opinion.
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A few points:
1. TWTR is not just a website, it is method for monetizing content and advertising to large audiences with some degree of precision targeting. The barrier to entry is high and the runway to building a competitive product long. He was buying immediate access versus building his own and he was buying control of TWTR’s numerous patents.
2. There is no such thing as an ironclad contract.
3. Asking for client lists and other information from an acquisition target is standard DD once the appropriate safeguards and contracts are in place.
4. I don’t like Musk but I am not going to underestimate his ability to wiggle out of this one. He ran circles around the SEC and other entities, why should he not be able to avoid performing here?