Elon Musk Twitter Deal

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Old 07-19-2022, 12:08 PM
retiredguy123 retiredguy123 is offline
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Default Elon Musk Twitter Deal

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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Old 07-19-2022, 12:19 PM
Keefelane66 Keefelane66 is offline
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Originally Posted by retiredguy123 View Post
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.
Not all wealthy people are smart. Their success is in who they hire. Elon actually bid higher than the actual valuation. He probably could have picked up “Truth Social” for a steal.
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Old 07-19-2022, 12:27 PM
MartinSE MartinSE is offline
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Originally Posted by retiredguy123 View Post
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.
First, as one of the richest men in the world, I will respect his financial planning over any random stranger on the internet.

He did not confide in me on why he wanted Twitter, but $44B is pocket change, so it may have been nothing more than a political statement.

Twitters assets are its clients, that is what he was buying. He said that he had reason to believe they lied about actual numbers or real clients, and many of the accounts were bots. If the lied, that would invalidate the contract.

I have not idea if he is a business genius, but he has innovated several high tech fields more than anyone ever. He is the only viable launch system the US has right now, is offering a global internet to people that never had it before, is perfecting brain computer interfaces, has demonstrated a viable EV, is drilling tunnels faster and cheaper than anyone, has a new cell phone in development, and is preparing a personal robot for sale. If he feels like making a $44B political statement with his petty cash, I don’t see any reason I would want to figure out why…
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Old 07-19-2022, 01:00 PM
retiredguy123 retiredguy123 is offline
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I don't see any reason to be negative. This is a major current news event about which many people have provided opinions.
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Old 07-19-2022, 01:18 PM
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Elon has the Midas touch. Anyone who can go from (relative) obscurity to the richest person in the world with a net worth of 233.7 bn. doesn't have much to prove to anyone.
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Old 07-19-2022, 01:51 PM
justjim justjim is offline
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Musk has a degree in Engineering not Finance.
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Old 07-19-2022, 02:06 PM
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Originally Posted by retiredguy123 View Post
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.
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?
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Old 07-19-2022, 02:31 PM
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Originally Posted by Keefelane66 View Post
Not all wealthy people are smart. Their success is in who they hire. Elon actually bid higher than the actual valuation. He probably could have picked up “Truth Social” for a steal.
Maybe he’s snooker them in to expose them?
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Old 07-19-2022, 03:02 PM
Badger 2006 Badger 2006 is offline
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Originally Posted by MartinSE View Post
First, as one of the richest men in the world, I will respect his financial planning over any random stranger on the internet.

He did not confide in me on why he wanted Twitter, but $44B is pocket change, so it may have been nothing more than a political statement.

Twitters assets are its clients, that is what he was buying. He said that he had reason to believe they lied about actual numbers or real clients, and many of the accounts were bots. If the lied, that would invalidate the contract.

I have not idea if he is a business genius, but he has innovated several high tech fields more than anyone ever. He is the only viable launch system the US has right now, is offering a global internet to people that never had it before, is perfecting brain computer interfaces, has demonstrated a viable EV, is drilling tunnels faster and cheaper than anyone, has a new cell phone in development, and is preparing a personal robot for sale. If he feels like making a $44B political statement with his petty cash, I don’t see any reason I would want to figure out why…
Political statement is correct. He believes in FREEDOM OF SPEECH. Twitter and Facebook are one sided political and social opinion media giants. I believe he is using his wealth to attempt to even the scales so all opinions, including directional political opinions and social opinions, can be distributed equally. Good for him!
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Old 07-19-2022, 04:55 PM
Keefelane66 Keefelane66 is offline
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News today Musk will have his day in court Oct 2022. Options may be pay $1billion forfeiture.
Pay the agreed price $44 billion or a price between the high low price due to the drama. It will be in Delaware where these disputes are heard set for 5 day trial.
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Old 07-19-2022, 04:58 PM
Kelevision Kelevision is offline
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Originally Posted by Badger 2006 View Post
Political statement is correct. He believes in FREEDOM OF SPEECH. Twitter and Facebook are one sided political and social opinion media giants. I believe he is using his wealth to attempt to even the scales so all opinions, including directional political opinions and social opinions, can be distributed equally. Good for him!
He’s being sued for trying to back out of the deal actually. Court date is in October.
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Old 07-19-2022, 07:42 PM
MartinSE MartinSE is offline
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Originally Posted by Kelevision View Post
He’s being sued for trying to back out of the deal actually. Court date is in October.
Are you sure he is trying to back out? Maybe it is a negotiating ploy to get a better price. Maybe he never intended to buy. Maybe he just changed his mind, a billion penalty is pocket change. Even $45B is not going to kill him.

I am not on Twitter, so personally, I have no horse in this race and could care less. My wife is on Twitter and now hates Elon - lol!. There goes my chance to get a Tesla...
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Old 07-20-2022, 12:38 AM
Woodbear Woodbear is offline
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Year to date Tesla is down 38%. Which means Musk is down about $76 Billion YTD on Tesla alone. If forced to buy Twitter, expect that stock to fall even more as Musk will be forced to liquidate some of those holdings to satisfy the debt.
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Old 07-20-2022, 04:27 AM
A-2-56 A-2-56 is offline
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Default Twitter value

Twitter has substantial income and its value is derived from the same as well as the potential that it could have if managed better.
The request that he was looking for was not that of real people it was parcels built into the software and managed by people to screen and monitor the activity of those using the system.
By purchasing the company he had hopes to dismantle an left wing management and staff while replacing it with a more tolerant ideal for various opinions, thereby expanding the customer base, and increasing the revenue stream.
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Old 07-20-2022, 05:13 AM
Vikingjunior Vikingjunior is offline
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I think he just wanted to prove to the advertisers that Twitter is fudging the numbers and most users are just bots. So the advertisement companies will either pull back or Twitter will have to go to a subscription based pay.
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