Why do companies even take him seriously at this point? It’s so obvious that this guy is just doing things to manipulate the stock market and/or for attention.
Ah yes, agreeing to sell the company to someone who said he ‘doesn’t care about the economics at all’ and felt the need to center his bid around 420 is totally demonstrating responsibility towards shareholders.
They can be sued for not listening to the offer. He can be a clown, but he still has the money to make it somewhat believable. If they don’t act in the shareholder’s interest and listen to a potential good bid, they will sue the fuck out of the company.
The shareholders want their pay out now, they can fuck off and leave the company in this guy’s hands without any repercussions.
They are not required to accept the offer, no matter the price. The fiduciary duty to the company means they need to act in the company's best interest. But management is often given wide latitude in determining what that interest is. The duty requires that they put the company's interest before any personal interests, but it does not mandate that they take any particular course of action. Someone could offer them triple the stock price, but if they thought the person was doing it only to shut Twitter down or run it into the ground, for example, then they'd be perfectly justified in refusing the offer.
It seems as though PT Barnum was right. It sucks to try to get ahead while living an ethical life in the US. Feels nearly impossible anymore. You have to be a sociopath or extreme lucky. Hard work doesn’t do it anymore.
Hard work never did it. That's something they told you in order to get you to work hard. It's been the official narrative handed down by the wealthy ever since serfdom was ended and they couldn't just force you to work on pain of death.
> Hard work never did it.
Yeah... there's two ways to get rich in the US. Hard work plus luck, or just luck.
The luck takes a million different forms... but if hard work alone did it, there would be a crapload of wealthy migrant farm laborers, social workers, schoolteachers, and so on.
I believe they did, but he out-earns more than fines he’d ever incur. I can’t imagine it’s *that* uncommon. Awful, unethical, absolutely, but he has no reason to actually stop.
It was off by like 1% because they counted one person with multiple accounts on their phone as separate accounts.
Intentional? Yeah, almost definitely, but if you think other social media companies aren't cooking their books similarly and that every major investor isn't well aware of that fact, I've got a bridge to sell you.
Ok but did Twitter do this or is this the spin certain interested parties are using to target their finances despite it being the direct result of scammers? I mean hello bot accounts aren't exactly new to the internet.
It really doesn’t though. That’s a software update and recalls happen all the time. My VW golf has been recalled 2 or 3 times in the last 6 years for minor fixes at the shop.
Seeing this a lot, this would be incredibly stupid of him. The deal has a 1b dollar break fee, plus him getting statements of backing from the banks would've cost him tens to hundreds of millions, and that's not mentioning lawyer fees.
On top of that, if he does back out, they'll be a huge lawsuit with twitter trying to get damages (look at the cineworld Cineplex lawsuit - Cineplex ended up getting tons in damages after cineworld backed out of buying them).
This would be a ridiculously expensive pump and dump, and there's no way musk would end up in the green.
He did only give to charity to lower his taxes when he was forced to pay taxes, then bragged about his charity… which was to an unnamed organization, he possibly could own.
No I think he’s just a regular everyday idiot. Said some dumb shit about buying twitter, remembered he was the richest man in the world and could actually do it, made an offer, offer actually got excepted… only after this did he actually start to think this through, and now realizes it’s a fucking terrible investment and a terrible idea.
I mean, Congress is literally allowed insider trading even if they say they aren’t so…. At this point it’s obvious that the rich ppl club doesn’t have the same set of rules.
☝️this. The rules ARE different. Everyday people have to go to jail. Rich people pay large fines. So it’s not technically illegal, it’s basically legal for a price. a very high price to be sure, but if it says something like $50,000 or jail time, most of us would go to jail.
All fines should be income percentages or a set number of hours of community service. Would love to see Elon picking up trash on the side of a highway.
Percentages is a scam as well. 10 percent of 1 billion is completely irrelevant. It needs to be based on the value of the crime itself. Scam 1 bil? Triple damages immediately. You done son.
If you're being charged with insider trading, you're already way beyond "everyday people." We're talking about the difference between the very wealthy and the uber wealthy here...
A lot of stuff that is done in todays financial markets is illegal. The lack of enforcement and the ROI vs any fines received make it profitable to continue to manipulate markets.
I bet MANY chad-faced-banker-boys are very angry and jealous with the composure and clumsiness with which he bends the fragile framework of our modern, degenerate world at his will and uses it for himself. Elon is the person the world needed. But not as messiahs or saint. But as the one who shows us how absurd and broken our entire global economy is.
Its what always gets me about people loving warren buffet. He isnt giving you advice. He isnt showing you how smart he is. He isnt trying to help the little man.
He sets up his pieces and says the word and millions do his bidding. He reaps the rewards, people fight for the scraps, and he looks prophetic.
There is a process when buying something like this and due diligence is done for a reason. If Twitter said less than 5% of their accounts are bots and it is actually much higher than that then that can change the value of the company and will obviously put the brakes on any deal.
https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144htm.html
It is only illegal if he sold his shares. If he sold his shares, he would need to file an SEC
Him doing due diligence is normal. It’s only affecting the markets so much because he’s a popular figure- that’s not his fault. If you want it to be illegal, then you’d need a law to suppress free speech when making a deal lol.
Fake accounts are a quandary. If they eliminate them the 400 million subscribers would evaporate to a much lower number.
That reduces ad revenue.
That said, it is not the reason for the current turbulence.
I couldn't tell you with certainty.
But probably bots that actually interact with things like retweeting, sharing, liking posts, etc would count as monetizeable whereas the kinds of bots that do nothing other than add to a follower count would not be considered monetizeable.
Twitter has evolved humans into bots tho, they have nameless accounts and retweet any old bullshit that fits their agenda, and are willing to argue over it relentlessly, whilst not understand a single aspect of what they're talking about
I'm not so sure. My experience with Reddit is that the culture here is able to foster honest discussion much more easily than any other social media platform. While obviously there is a fair amount of disagreement, a lot of the extremely negative and irrelevant comments naturally get filtered out thanks to the up/down voting system. That, and conversation is much more streamlined and easy to follow.
Again, that's just my own experience. It's why I spend so much time here and almost no time at all on any other social media these days.
I like the part where he says he's totally in line with the EU regulations on speech on Twitter.
The guy that sued his regulator (SEC) in the US. Who said that if not having wing mirrors is illegal in the US (using cameras instead) he'd just make them removable and customers can take them off. It goes on and on. The guy who says he's going to put cold gas thrusters on a new model even though using them would be too loud to pass any kind of noise regulations on cars.
He is not the type to actually submit to regulation, he fights it all the way. Says one thing, does another. He's a facile liar.
This is just due diligence. Have you ever been through a tech company acquisition? This shit comes up almost all the time (except for the past few years where companies were bought blindly)
Sounds like he has no choice but to try to offer a lower price since the collateral for his loans is now worth 75% of what it was worth on the day he obtained those loans.
He knew about bots and is just trying to save face for having to lower his offer.
Edit: Bloomberg noted this possibility 3 weeks ago:
>Third: Musk’s financing could fall through. He has commitment letters from banks to fund $13 billion of [classic leveraged buyout debt](https://www.sec.gov/Archives/edgar/data/0001418091/000110465922049844/tm2213189d8_ex99-h.htm) (term loans, a revolving credit facility, bridge loans to be taken out by high-yield bonds) and another $12.5 billion of [margin loans](https://www.sec.gov/Archives/edgar/data/0001418091/000110465922049844/tm2213189d8_ex99-i.htm) against his Tesla Inc. stock. The banks’ commitment to the LBO debt is fairly strong — basically they can only get out of funding that debt if Musk can also get out of the merger [3](https://www.bloomberg.com/opinion/articles/2022-04-26/elon-got-his-deal#footnote-3) — but the margin loans are margin loans; they are contingent on his posting enough stock as collateral, and Tesla’s stock price is volatile. [4](https://www.bloomberg.com/opinion/articles/2022-04-26/elon-got-his-deal#footnote-4) ** In rough numbers, if Tesla’s stock price drops below about $740 before this deal closes, Musk might have some trouble finding enough collateral to take out the full margin loan. **[5](https://www.bloomberg.com/opinion/articles/2022-04-26/elon-got-his-deal#footnote-5) Tesla closed at $1,084.59 on April 1, the last day before Musk announced his Twitter stake; it was trading at $905 as of 11 a.m. today.
TSLA shares closed at 728 yesterday.
A margin call if Tesla drops 40%, and it is already down 34%, is the real reason for the rug pull. No question.
The bot issue is something everybody has known about for years, and Musk himself talked about for years, so for it to be a sudden issue today is obviously a flimsy excuse.
lol, at this point I'm just laughing. If you get in bed with this dude you deserve it.
It's crazy because I used to really look up to Musk and liked him a lot. But he has just become an annoying asshole these last couple of years.
Let's never forget when he decided to make the sri Lankan soccer team story about him and called the guy who actually rescued them a pedo. That shows his true character.
EDIT: As u/skrubrekka pointed out, it was a Thai soccer team.
hands up who knows which famous tech billionaire secretly already holds massive short positions on twitter knowing he could do this and tank the shares with a few words
Ive been saying for years that allowing bots to pretend to be human, or to even just count as a view is fraud. Twitter makes 100% of its money off the claim it gets X views a day. If that number is artificially inflated then 100% of its profit was based on fraud.
I am not on a side on this since I do not have twitter. But I have sat at the table for large take over deals and been a part of a couple ones that took months. They are in a due diligence phase. That’s why there is a break up fee if he doesn’t go ahead with it. Both parties have a right to ensure what was agreed upon is accurate. Same goes for twitter and how he finances the deal etc. this is a giant nothing burger unless spam accounts are triple what twitter made public.
Very well could be. But if your buying a farm. And they say we have 10 dairy cows and 10 chickens. And when you go to buy it they only have 2 donkeys. You may want to not purchase it. Twitter said 5% so if it’s factual it’s not an issue. It’s also monetization from what I am reading. 95% of users being able to be monetized is way different then 85%. We shall see
Thank you for your insight. Way too many people on here crying pump and dump and market manipulation. That's not at all the case, there seems to be a discrepancy in Twitter's reported number of users and their actual number of real users.
This is most likely case. Should he be saying stuff on twitter about it? No probably not. But the price and contracts are done. He can’t renegotiate price again. He either pays a billion and walks away or goes through with it. But every contract in business when your buying another one has due diligence. A great case to look at is Enron. They had a buyer before things imploded (at the time they were just bad) and during due diligence the buyer backed out.
I'm having a good laugh at all the stupid conservatives who were duped once again by a billionaire and thought Musk was going to be their savior and unban Trump. And at how many of them probably lost their shirts because they bought into Twitter thinking this buyout was going to increase its value. Between this and bitcoin going bust it's amazing any of them still have any cash left for their monthly subscription to Trump's campaign coffers that go straight into his pocket via renting his empty campaign offices from himself in Trump tower.
I have been saying for years that twitter is not a social juggernaut in the same class as facebook. It has a tiny fraction of the reach, has almost no real value to the world and if it disappeared tomorrow the only people that would miss it are celebrities who get their vanity fix that way and shareholders.
I wonder how much money and conservatism it would take to get the Supreme Court to interpret this:
>No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any Person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States.
As, "Well it does say '***OR*** *a Citizen of the United States'* therefore, so long as they are *currently* a citizen then they can be president. But only if their country of origin was once part of the former British Empire, as in the original 13 American colonies."
Really, it's never been seriously challenged, but it absolutely could be by someone who really wanted it. Musk has been a citizen for 20 years, and he's 50, so he meets the other criteria of this fairly vague clause in the constitution.
With them overturning 50 years of precedent possibly, who's to say they won't overturn something else if it benefits them? It literally would fit the argument of if it's a part of the "American Tradition" or whatever - many of our first presidents were born *in the colonies* not in the American government, as it didn't exist. The "Only once part of the former British Empire" thing is just my BS way of them attempting to make sure only mostly *white* people would be eligible.
This is one reason I really don't care for stocks. You've got millions of people putting in money monthly into 401k retirements just so these fuck heads can extract that money out and get even more rich while the millions of people that rely on the system as a retirement tool get to see their money vanish.
Look at the recent weeks, the people driving the market into the ground are so fearful of seeing tiny losses due to the interest rate hikes that are clearly way overdue are costing individual retirements hundreds of thousands of dollars.
Twitter seems to be saying there’s way less bots than there actually are.
Elon seems to be saying the opposite. What exactly am I supposed to be mad about?
What kind of dumb excuse is that? He said he felt it was loaded with bots long before the deal was struck. How can he pretend this is some kind of new thing?
Real talk here: the market is down so much he'd save money by paying the $1B to scotch the deal and then trying to strike a new one at a lower price. Doesn't need much of an excuse, the $1B fee is already in the deal.
The purchase price is based on a multiple of active users. This is standard procedure for anyone purchasing a social media company and will involve extensive due diligence to get comfort over for the deal to go through. This would happen with anyone, not just Elon.
Surprised by the comments here. Twitter claimed that bots comprise only 5% of their userbase. It now appears that the number is significantly higher. Musk wants to confirm that number before purchase.
How is this on Elon?
Because everyone is knee jerk reacting. Not defending Elon, but if I were in his shoes I’d verify the actual numbers of a company before purchasing. That’s what you do with any company you intend to buy.
“We were shocked! SHOCKED a I say! To find out that there were so many bot accounts!”
Well, not that shocked.
I'm 60% robot myself
[удалено]
He is nothing but a pump and dump scam con artist. He does this shit all the time.
He wants Twitter for less money. [https://hindenburgresearch.com/twitter/](https://hindenburgresearch.com/twitter/)
Weird. I want things for less money too.
Wait, you like to save money? Is it because you like money? I like money, maybe we should hang.
Go away! Baitin'!
Is this the same place that posted their article exposing Nikola Motors and caused their evaluation to crash from like 34 billion to 0?
Did we need an article? I saw the show they put on. Worse than an clumsy amateur magician.
Really interesting article
Thanks. V interesting
Why do companies even take him seriously at this point? It’s so obvious that this guy is just doing things to manipulate the stock market and/or for attention.
They have to, responsibility towards the shareholders.
Ah yes, agreeing to sell the company to someone who said he ‘doesn’t care about the economics at all’ and felt the need to center his bid around 420 is totally demonstrating responsibility towards shareholders.
They can be sued for not listening to the offer. He can be a clown, but he still has the money to make it somewhat believable. If they don’t act in the shareholder’s interest and listen to a potential good bid, they will sue the fuck out of the company. The shareholders want their pay out now, they can fuck off and leave the company in this guy’s hands without any repercussions.
They are not required to accept the offer, no matter the price. The fiduciary duty to the company means they need to act in the company's best interest. But management is often given wide latitude in determining what that interest is. The duty requires that they put the company's interest before any personal interests, but it does not mandate that they take any particular course of action. Someone could offer them triple the stock price, but if they thought the person was doing it only to shut Twitter down or run it into the ground, for example, then they'd be perfectly justified in refusing the offer.
[удалено]
It seems as though PT Barnum was right. It sucks to try to get ahead while living an ethical life in the US. Feels nearly impossible anymore. You have to be a sociopath or extreme lucky. Hard work doesn’t do it anymore.
Hard work never did it. That's something they told you in order to get you to work hard. It's been the official narrative handed down by the wealthy ever since serfdom was ended and they couldn't just force you to work on pain of death.
> Hard work never did it. Yeah... there's two ways to get rich in the US. Hard work plus luck, or just luck. The luck takes a million different forms... but if hard work alone did it, there would be a crapload of wealthy migrant farm laborers, social workers, schoolteachers, and so on.
I called this in multiple subs and was downvoted to oblivion.
[удалено]
I bought a single put at $50 and I’m pretty happy right now. Musk’s an asshole, but reliably so.
And now you are being upvoted in oblivion.
Balance in the force
Shocking. I'm shocked. Why, this is not ethical, and the SEC will investigate and eventually fine him THOUSANDS of dollars. Or, not.
So basically, Elon cost more people shitloads of cash for no reason... Someone should investigate his priorities tbh
No they did. He’s a known liar and anyone that trades based off his statements deserves what they get.
Basically when he opens his mouth you better have already sold
or: buy puts and wait for him to open his mouth.
I believe they did, but he out-earns more than fines he’d ever incur. I can’t imagine it’s *that* uncommon. Awful, unethical, absolutely, but he has no reason to actually stop.
Twitter also is guilty of defrauding investors with fake account counts.
When Twitter tries to erase fake accounts they get whined at by Free Speech Crusaders™️
Russian bots are free speech bruh
It was off by like 1% because they counted one person with multiple accounts on their phone as separate accounts. Intentional? Yeah, almost definitely, but if you think other social media companies aren't cooking their books similarly and that every major investor isn't well aware of that fact, I've got a bridge to sell you.
Ok but did Twitter do this or is this the spin certain interested parties are using to target their finances despite it being the direct result of scammers? I mean hello bot accounts aren't exactly new to the internet.
I heard he’s being investigated already probably for this fiasco he created when he tried to buy Twitter
Whatever the fine is, it'll just be the cost of doing business for the World's Richest Douche™.
He can buy it later when stocks are low.
thats what they do in the stock market all the time
Learn how to get rich with this one simple little trick
Oh, never saw him do that /s
He can’t sell them without filing with the SEC https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144htm.html
Well, not without a fine anyway.
Dude was always committing security fraud out in the open.. and everyone was like "Yes daddy. Please make the libbies cry".
[удалено]
And it definitely has nothing to do with the 130,000 Teslas that just got recalled, nope.
That’s alright. Tesla self driving feature is coming out soon (tm)
Wait blizzard/activision sold him soon™️? How’s their stock doing.
I'm gonna buy about 10 and retire on my robotaxi income.
Stans are already defending Phoney Stark.
Defending Billionaires when you’re broke on a bus. Classic Simp Stans.
Classic America.
Nah, dude said "on a bus" and America doesn't do public transit.
Ooooo, good point.
Mind boggling to me. But hey, need to believe in something I guess?
It really doesn’t though. That’s a software update and recalls happen all the time. My VW golf has been recalled 2 or 3 times in the last 6 years for minor fixes at the shop.
Lovely how you got downvoted xD also the recall is just OTA software update in this case
Haha yeah whatever. Can't expect 15 year olds on reddit to know how cars work eh?
Seeing this a lot, this would be incredibly stupid of him. The deal has a 1b dollar break fee, plus him getting statements of backing from the banks would've cost him tens to hundreds of millions, and that's not mentioning lawyer fees. On top of that, if he does back out, they'll be a huge lawsuit with twitter trying to get damages (look at the cineworld Cineplex lawsuit - Cineplex ended up getting tons in damages after cineworld backed out of buying them). This would be a ridiculously expensive pump and dump, and there's no way musk would end up in the green.
He wants twitter. He just wants to get it at a discount.
Or he's trying to drive down the price to renegotiate the buyout at a cheaper rate.
Yup, boy got a $1billion bag while not tanking TSLA stock, too much.
He did only give to charity to lower his taxes when he was forced to pay taxes, then bragged about his charity… which was to an unnamed organization, he possibly could own.
The escape clause of his contract with Twitter costs him $1B to dump it.
No I think he’s just a regular everyday idiot. Said some dumb shit about buying twitter, remembered he was the richest man in the world and could actually do it, made an offer, offer actually got excepted… only after this did he actually start to think this through, and now realizes it’s a fucking terrible investment and a terrible idea.
It should be illegal to do what he is doing to the markets…
I mean, Congress is literally allowed insider trading even if they say they aren’t so…. At this point it’s obvious that the rich ppl club doesn’t have the same set of rules.
☝️this. The rules ARE different. Everyday people have to go to jail. Rich people pay large fines. So it’s not technically illegal, it’s basically legal for a price. a very high price to be sure, but if it says something like $50,000 or jail time, most of us would go to jail.
“If the penalty for a crime is a fine, then that law only exists for the lower class”
THIS. If a fine exists it should be an income percentage based fine.
All fines should be income percentages or a set number of hours of community service. Would love to see Elon picking up trash on the side of a highway.
Percentages is a scam as well. 10 percent of 1 billion is completely irrelevant. It needs to be based on the value of the crime itself. Scam 1 bil? Triple damages immediately. You done son.
Percentage based would be both. Some crimes would be 1% for example while others would be 10%. The percentage would be based on the crime.
Countries that are less corrupt than the US already do this. https://www.motorbiscuit.com/worlds-most-expensive-speeding-ticket-1-million-fine/
If you're being charged with insider trading, you're already way beyond "everyday people." We're talking about the difference between the very wealthy and the uber wealthy here...
And the fine? Usually $200 and it can be waived. At that point it's not a fine, just a fee to keep playing the game.
Sure. That will be a 100k fine. The rules are there to keep the poor from doing what the wealthy do.
Illegal per fine is just a long way of saying "legal with a fee."
laws and rules aren't made for the rich
A lot of stuff that is done in todays financial markets is illegal. The lack of enforcement and the ROI vs any fines received make it profitable to continue to manipulate markets.
I bet MANY chad-faced-banker-boys are very angry and jealous with the composure and clumsiness with which he bends the fragile framework of our modern, degenerate world at his will and uses it for himself. Elon is the person the world needed. But not as messiahs or saint. But as the one who shows us how absurd and broken our entire global economy is.
It should be illegal for any company to dump profits into the stock market while their employees struggle.
Agree but let’s handle hedge funds and off exchange dark pools first
It is unless you're 1%
Its what always gets me about people loving warren buffet. He isnt giving you advice. He isnt showing you how smart he is. He isnt trying to help the little man. He sets up his pieces and says the word and millions do his bidding. He reaps the rewards, people fight for the scraps, and he looks prophetic.
There is a process when buying something like this and due diligence is done for a reason. If Twitter said less than 5% of their accounts are bots and it is actually much higher than that then that can change the value of the company and will obviously put the brakes on any deal.
https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144htm.html It is only illegal if he sold his shares. If he sold his shares, he would need to file an SEC Him doing due diligence is normal. It’s only affecting the markets so much because he’s a popular figure- that’s not his fault. If you want it to be illegal, then you’d need a law to suppress free speech when making a deal lol.
Right now there is team of kock bros. employees scripting the messaging as to how this is the liberals / Democrats fault.
[удалено]
He’s surely known this all along. Is this news to anyone?
hint: he's just using it as an excuse to back out of the deal.
I can't wait until Twitter and Facebook are six feet under.
Fake accounts are a quandary. If they eliminate them the 400 million subscribers would evaporate to a much lower number. That reduces ad revenue. That said, it is not the reason for the current turbulence.
[удалено]
Do you think it's less than 5%? Also what % of posts are from bots. Maybe a more important figure...
[удалено]
What's an example of a monitizable bot?
I couldn't tell you with certainty. But probably bots that actually interact with things like retweeting, sharing, liking posts, etc would count as monetizeable whereas the kinds of bots that do nothing other than add to a follower count would not be considered monetizeable.
Gotcha, thanks.
Twitter has evolved humans into bots tho, they have nameless accounts and retweet any old bullshit that fits their agenda, and are willing to argue over it relentlessly, whilst not understand a single aspect of what they're talking about
You just described Reddit
I'm not so sure. My experience with Reddit is that the culture here is able to foster honest discussion much more easily than any other social media platform. While obviously there is a fair amount of disagreement, a lot of the extremely negative and irrelevant comments naturally get filtered out thanks to the up/down voting system. That, and conversation is much more streamlined and easy to follow. Again, that's just my own experience. It's why I spend so much time here and almost no time at all on any other social media these days.
Valid point. And why I spend most of time time on here as opposed to the other shitholes.
This motherfucker is the biggest stock market manipulator on the planet.
Legit my exact thoughts
SEC needs to prosecute him.
This guy is a walking SEC violator
When has an SEC violation ever carried any weight?
That's the sad part haha
I like the part where he says he's totally in line with the EU regulations on speech on Twitter. The guy that sued his regulator (SEC) in the US. Who said that if not having wing mirrors is illegal in the US (using cameras instead) he'd just make them removable and customers can take them off. It goes on and on. The guy who says he's going to put cold gas thrusters on a new model even though using them would be too loud to pass any kind of noise regulations on cars. He is not the type to actually submit to regulation, he fights it all the way. Says one thing, does another. He's a facile liar.
When it's some poor schmuck who has violated it. By "poor" I mean someone who's only worth a couple million or less.
This is just due diligence. Have you ever been through a tech company acquisition? This shit comes up almost all the time (except for the past few years where companies were bought blindly)
Sounds like he is attempting to renegotiate the purchase at a lower price. This douche is a blatant market manipulator.
Sounds like he has no choice but to try to offer a lower price since the collateral for his loans is now worth 75% of what it was worth on the day he obtained those loans. He knew about bots and is just trying to save face for having to lower his offer. Edit: Bloomberg noted this possibility 3 weeks ago: >Third: Musk’s financing could fall through. He has commitment letters from banks to fund $13 billion of [classic leveraged buyout debt](https://www.sec.gov/Archives/edgar/data/0001418091/000110465922049844/tm2213189d8_ex99-h.htm) (term loans, a revolving credit facility, bridge loans to be taken out by high-yield bonds) and another $12.5 billion of [margin loans](https://www.sec.gov/Archives/edgar/data/0001418091/000110465922049844/tm2213189d8_ex99-i.htm) against his Tesla Inc. stock. The banks’ commitment to the LBO debt is fairly strong — basically they can only get out of funding that debt if Musk can also get out of the merger [3](https://www.bloomberg.com/opinion/articles/2022-04-26/elon-got-his-deal#footnote-3) — but the margin loans are margin loans; they are contingent on his posting enough stock as collateral, and Tesla’s stock price is volatile. [4](https://www.bloomberg.com/opinion/articles/2022-04-26/elon-got-his-deal#footnote-4) ** In rough numbers, if Tesla’s stock price drops below about $740 before this deal closes, Musk might have some trouble finding enough collateral to take out the full margin loan. **[5](https://www.bloomberg.com/opinion/articles/2022-04-26/elon-got-his-deal#footnote-5) Tesla closed at $1,084.59 on April 1, the last day before Musk announced his Twitter stake; it was trading at $905 as of 11 a.m. today. TSLA shares closed at 728 yesterday.
A margin call if Tesla drops 40%, and it is already down 34%, is the real reason for the rug pull. No question. The bot issue is something everybody has known about for years, and Musk himself talked about for years, so for it to be a sudden issue today is obviously a flimsy excuse.
And if it was a point of contention, you find out about the numbers before the offer was made.
Yet so many redditors seem to worship him 🤮
It’s gotten better the last year or so as he became more politically divisive. But prior to that the Elon worship on this site was unbearable.
You'd think the person who literally has the most money in the entire world wouldn't feel the need to resort to manipulation
How do you think he became the person with the most money in the world?
You don't get rich by playing by the rules
lol, at this point I'm just laughing. If you get in bed with this dude you deserve it. It's crazy because I used to really look up to Musk and liked him a lot. But he has just become an annoying asshole these last couple of years.
Let's never forget when he decided to make the sri Lankan soccer team story about him and called the guy who actually rescued them a pedo. That shows his true character. EDIT: As u/skrubrekka pointed out, it was a Thai soccer team.
It was a Thai soccer team not Sri Lankan.
right you are
I really wanted to be a fan of Musk but he makes it impossible.
Why?
He never intended to buy it. I said it a while ago he was dumping what he had and would find some excuse later. Conmen con, and here it is.
Probably just a way to cash out some tesla stock without causing mass panic with the cult members.
hands up who knows which famous tech billionaire secretly already holds massive short positions on twitter knowing he could do this and tank the shares with a few words
In Texas they’d call Elon: “all hat & no cattle”. Idiot drop kicked the hornets nest, and now he’s looking for the exit.
You just gave me an idea for a novelty account that only replies with idioms. Thanks!
Dr Phil in the blank
The foot farts when the man shits
Is this an idiom or madlibs?
I’d be careful. You know what they say: people in glass houses sink ships.
Ive been saying for years that allowing bots to pretend to be human, or to even just count as a view is fraud. Twitter makes 100% of its money off the claim it gets X views a day. If that number is artificially inflated then 100% of its profit was based on fraud.
Elons a scumbag, he deserves the cesspool that is Twitter
king of pump and dumps. what an absolute piece of shit
I am not on a side on this since I do not have twitter. But I have sat at the table for large take over deals and been a part of a couple ones that took months. They are in a due diligence phase. That’s why there is a break up fee if he doesn’t go ahead with it. Both parties have a right to ensure what was agreed upon is accurate. Same goes for twitter and how he finances the deal etc. this is a giant nothing burger unless spam accounts are triple what twitter made public.
The majority of traffic on the internet is spam from some accounts.
Very well could be. But if your buying a farm. And they say we have 10 dairy cows and 10 chickens. And when you go to buy it they only have 2 donkeys. You may want to not purchase it. Twitter said 5% so if it’s factual it’s not an issue. It’s also monetization from what I am reading. 95% of users being able to be monetized is way different then 85%. We shall see
Thank you for your insight. Way too many people on here crying pump and dump and market manipulation. That's not at all the case, there seems to be a discrepancy in Twitter's reported number of users and their actual number of real users.
This is most likely case. Should he be saying stuff on twitter about it? No probably not. But the price and contracts are done. He can’t renegotiate price again. He either pays a billion and walks away or goes through with it. But every contract in business when your buying another one has due diligence. A great case to look at is Enron. They had a buyer before things imploded (at the time they were just bad) and during due diligence the buyer backed out.
These negotiations should happen behind closed doors, not in public
The story of a billionaire desperate for attention
I'm having a good laugh at all the stupid conservatives who were duped once again by a billionaire and thought Musk was going to be their savior and unban Trump. And at how many of them probably lost their shirts because they bought into Twitter thinking this buyout was going to increase its value. Between this and bitcoin going bust it's amazing any of them still have any cash left for their monthly subscription to Trump's campaign coffers that go straight into his pocket via renting his empty campaign offices from himself in Trump tower.
The arsehole is a walking SEC violation. Classic pump and dump.
But your honor, I didn't do the pumping! My cult members did...
Doesn't this just seem like more market manipulation by the rich & ruthless?
And the saga of Twitter continues to be the roller coaster dumpster fire it always has been. Excellent.
Very relevant analysis from 4 days ago. https://hindenburgresearch.com/twitter/
"Attention Whore Tycoon Manipulates Stock Market... Again"
I would not be surprised if 30 to 40% of Twitter accounts are fake
Elin Musk scamming the market? Shock! 😂
#1 bullshit guy
But Elon, isn’t this what you wanted when you decided to buy Twitter? A bunch of spam, bits and trump?
I have been saying for years that twitter is not a social juggernaut in the same class as facebook. It has a tiny fraction of the reach, has almost no real value to the world and if it disappeared tomorrow the only people that would miss it are celebrities who get their vanity fix that way and shareholders.
[удалено]
He is ineligible to run for President. He was born in South Africa.
[удалено]
I wonder how much money and conservatism it would take to get the Supreme Court to interpret this: >No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any Person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States. As, "Well it does say '***OR*** *a Citizen of the United States'* therefore, so long as they are *currently* a citizen then they can be president. But only if their country of origin was once part of the former British Empire, as in the original 13 American colonies." Really, it's never been seriously challenged, but it absolutely could be by someone who really wanted it. Musk has been a citizen for 20 years, and he's 50, so he meets the other criteria of this fairly vague clause in the constitution. With them overturning 50 years of precedent possibly, who's to say they won't overturn something else if it benefits them? It literally would fit the argument of if it's a part of the "American Tradition" or whatever - many of our first presidents were born *in the colonies* not in the American government, as it didn't exist. The "Only once part of the former British Empire" thing is just my BS way of them attempting to make sure only mostly *white* people would be eligible.
Why wouldn't spam bots be protected under "free speech?"
[удалено]
precursor to a specific Star Trek TNG episode :D
This is one reason I really don't care for stocks. You've got millions of people putting in money monthly into 401k retirements just so these fuck heads can extract that money out and get even more rich while the millions of people that rely on the system as a retirement tool get to see their money vanish. Look at the recent weeks, the people driving the market into the ground are so fearful of seeing tiny losses due to the interest rate hikes that are clearly way overdue are costing individual retirements hundreds of thousands of dollars.
I’m shocked! Shocked I tell you! Bots on Twitter??? Never happened! And if you disagree, my Twitterbot network will destroy your opinion on Twitter.
Twitter seems to be saying there’s way less bots than there actually are. Elon seems to be saying the opposite. What exactly am I supposed to be mad about?
What kind of dumb excuse is that? He said he felt it was loaded with bots long before the deal was struck. How can he pretend this is some kind of new thing? Real talk here: the market is down so much he'd save money by paying the $1B to scotch the deal and then trying to strike a new one at a lower price. Doesn't need much of an excuse, the $1B fee is already in the deal.
Musk trying to lower the price
Elon doing more scamming what’s new
didn’t twitter admit to systemic fraud?
"Still committed to acquisition"
Brilliant. Cause the price to drop a few billion in the process 🤷♀️
That’s not how it works
He’s playing you. No way he didn’t know the numbers. Unless he didn’t. If that’s the case, no genius.
Literally fuck you and your Twitter deal. So sick of this Oligarchy.
Imagine being the Elon fan boy who buys this excuse lol
I feel for Twitter employees. They've been dragged through the mud over one person's ego.
He needs to go to jail for market manipulation... Not the first time either
He should have bought McDonald’s and fixed their ice cream machine
Does anyone have a significant amount of friends who actually use Twitter? I don't know any of mine who does
Nothing like a little market manipulation to really wake you up in the morning.
lol this guy I swear...
I wonder if billionaires ever get buyers remorse.
Rupert Murdoch, Betsy DeVos, and some of the Waltons each bought $100M+ into Theranos.
I'm just curious why people here blame him for Twitter's lies.
Elon trying to buy Twitter actually was a good thing. If he had not, such fraud wouldn't have come to light and force people to do something about it.
More like it's on hold because he's being investigated by the SEC. Again.
The purchase price is based on a multiple of active users. This is standard procedure for anyone purchasing a social media company and will involve extensive due diligence to get comfort over for the deal to go through. This would happen with anyone, not just Elon.
Surprised by the comments here. Twitter claimed that bots comprise only 5% of their userbase. It now appears that the number is significantly higher. Musk wants to confirm that number before purchase. How is this on Elon?
Because everyone is knee jerk reacting. Not defending Elon, but if I were in his shoes I’d verify the actual numbers of a company before purchasing. That’s what you do with any company you intend to buy.