21 votes

Elon Musk offers to buy Twitter outright for $41 billion

15 comments

  1. [3]
    HotPants
    Link
    What's curious is the TWTR stock barely moved. Matt Levines theory that all Musk has to do is tweet about something to move the price... doesn't seem to be working?

    What's curious is the TWTR stock barely moved.

    Matt Levines theory that all Musk has to do is tweet about something to move the price... doesn't seem to be working?

    8 votes
    1. [2]
      nacho
      Link Parent
      He's done stuff like this so many times before the market would probably have priced at least part of it in. Also, I don't really think people are buying this $41 billion bluff. You don't just...

      He's done stuff like this so many times before the market would probably have priced at least part of it in.

      Also, I don't really think people are buying this $41 billion bluff. You don't just have that sitting around in cash for a crazy play like this.

      5 votes
      1. HotPants
        Link Parent
        from the SEC filing... https://www.sec.gov/Archives/edgar/data/0001418091/000110465922045641/tm2212748d1_sc13da.htm Buyouts are always leveraged with loans.

        You don't just have that sitting around in cash for a crazy play like this.

        from the SEC filing...

        https://www.sec.gov/Archives/edgar/data/0001418091/000110465922045641/tm2212748d1_sc13da.htm

        The Proposal is non-binding and, once structured and agreed upon, would be conditioned upon, among other things, the (i) receipt of any required governmental approvals; (ii) confirmatory legal, business, regulatory, accounting and tax due diligence; (iii) the negotiation and execution of definitive agreements providing for the Proposed Transaction; and (iv) completion of anticipated financing.

        Buyouts are always leveraged with loans.

        9 votes
  2. [11]
    lou
    Link
    Whatta fuck? Elon Musk says he’s ‘not sure’ he’ll be able to buy Twitter after $43 billion bid, teases a plan B
    7 votes
    1. [10]
      cfabbro
      (edited )
      Link Parent
      Is anyone really surprised by this? Musk is a market manipulating troll, always has been, and I saw this coming a mile away. Here's hoping this gives the SEC the ammunition they need to finally...

      Is anyone really surprised by this? Musk is a market manipulating troll, always has been, and I saw this coming a mile away. Here's hoping this gives the SEC the ammunition they need to finally nail Musk's ass to the wall and put an end to this crap.

      25 votes
      1. [7]
        nacho
        Link Parent
        I don't really think that the SEC is built to dole out hefty enough fines to make this not worth doing if you're ultra rich and can play the market. It seems Musk makes a lot of money with these...

        I don't really think that the SEC is built to dole out hefty enough fines to make this not worth doing if you're ultra rich and can play the market.

        It seems Musk makes a lot of money with these stunts because the fines don't hurt enough.

        1 vote
        1. [5]
          cfabbro
          (edited )
          Link Parent
          The SEC's power is not just limited to doling out fines. See, the previous SEC settlements with Musk. And the SEC oversight of his tweets related to Tesla is something Musk is still fighting...

          The SEC's power is not just limited to doling out fines. See, the previous SEC settlements with Musk.

          Among other relief, the settlements require that:

          • Musk will step down as Tesla’s Chairman and be replaced by an independent Chairman. Musk will be ineligible to be re-elected Chairman for three years;
          • Tesla will appoint a total of two new independent directors to its board;
          • Tesla will establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications;
          • Musk and Tesla will each pay a separate $20 million penalty. The $40 million in penalties will be distributed to harmed investors under a court-approved process.

          And the SEC oversight of his tweets related to Tesla is something Musk is still fighting against to this day. But I doubt this latest idiotic move by him is going to help his case. If anything, the SEC may end up gaining even more control over him, his investments, and his tweets now, thanks to this.

          10 votes
          1. [4]
            skybrian
            Link Parent
            I remember this settlement, but it's unclear that it had any real effect on him. It seems like he still runs Tesla and tweets whatever he likes?

            I remember this settlement, but it's unclear that it had any real effect on him. It seems like he still runs Tesla and tweets whatever he likes?

            3 votes
            1. [3]
              cfabbro
              (edited )
              Link Parent
              Well, yeah... he's still CEO and on the board of directors, but he is no longer chairperson of the board, Robyn Denholm is. And she also now chairs the newly created Disclosure Controls committee...

              It seems like he still runs Tesla

              Well, yeah... he's still CEO and on the board of directors, but he is no longer chairperson of the board, Robyn Denholm is. And she also now chairs the newly created Disclosure Controls committee too, which oversees "the controls and processes governing the Company and its executive officers' public disclosures and public statements relating to the Company" (e.g. Musk's Tesla related tweets), making sure they comply with the SEC's settlement terms.

              and tweets whatever he likes

              Not about Tesla he doesn't, not anymore. That's why he is fighting so hard in the courts to get the aforementioned committee's oversight removed.

              4 votes
              1. [2]
                skybrian
                Link Parent
                I don’t read Musk’s feed, I just read news about him. Have you noticed a change? Or did someone do an analysis of how it changed?

                I don’t read Musk’s feed, I just read news about him. Have you noticed a change? Or did someone do an analysis of how it changed?

                2 votes
                1. cfabbro
                  (edited )
                  Link Parent
                  I have definitely noticed a huge change. And no analysis needed, IMO, since the contrast is stark. He barely ever tweets about Tesla anymore, and even when he does now it's typically just short...

                  I have definitely noticed a huge change. And no analysis needed, IMO, since the contrast is stark. He barely ever tweets about Tesla anymore, and even when he does now it's typically just short informational posts. Gone are the days of his constant bullshit tweets about autopilot's capabilities, unrealistic timelines for fully-autonomous mode, claims about Tesla's safety record, and hype generating announcements about "major" company/product developments. No more attacking random twitter users and journalists who criticize Tesla anymore either.

                  3 votes
        2. MimicSquid
          Link Parent
          Even beyond that, Musk has worked to ruin the careers of anyone who puts pressure on him from within a government agency, so everyone already knows that messing with him is dangerous. It's an...

          Even beyond that, Musk has worked to ruin the careers of anyone who puts pressure on him from within a government agency, so everyone already knows that messing with him is dangerous. It's an awful situation, but people are worried about testing his limits.

          6 votes
      2. [2]
        ras
        Link Parent
        Spoiler They'll give him a slap on the wrist, if that.
        Spoiler They'll give him a slap on the wrist, if that.
        1. blender_cuttingham
          Link Parent
          Too big to fail. In this case it's about money, but also his ego :)

          Too big to fail. In this case it's about money, but also his ego :)

          2 votes
  3. kwyjibo
    Link
    This will not happen. I don't think Musk is serious to begin with, but I'd be pretty surprised if Twitter board accepts the offer. The stock was trading at around $70 same time last year and...

    This will not happen. I don't think Musk is serious to begin with, but I'd be pretty surprised if Twitter board accepts the offer. The stock was trading at around $70 same time last year and Musk's offer is significantly lower than that. Twitter product team could sit on their hands (gotta be used to that by now) and just wait until 2024 for stock to hit relatively close to that number, if not more, and then the board could entertain offers.

    5 votes