PublicWire | Emerging Market Stock News
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
No Result
View All Result
PublicWire
No Result
View All Result

Home » Technology » Musk pauses, Twitter sinks

Musk pauses, Twitter sinks

by PublicWire
May 13, 2022
in Technology
Reading Time: 2 mins read
0

It never ends with this guy, does it? Except in this case it might.

Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of usershttps://t.co/Y2t0QMuuyn

— Elon Musk (@elonmusk) May 13, 2022

There’s an obvious reading here. It’s that Musk, having had his fun, is done. A lot of people predicted that would happen. The $1bn one-off break fee had always looked good value when compared against the approximately $1bn of annual financing costs the Tesla CEO would have to pay to take responsibility for his obsession.

An ostensible need for deal funding also meant Musk didn’t have to explain the $8.5bn he has raised by selling Tesla stock, even though the sales were inexplicably early in the process.

Nevertheless, Musk can’t just walk away for no reason. So long as financing is available, Twitter’s board can force him to close the deal. This might appear a moot point given Musk’s Plan A was to use a margin loan tied to Tesla shares, which he could collapse unilaterally, but for the world’s richest person such a withdrawal might be a bit embarrassing.

What Musk seems to be doing instead is an Othello: he’s out to kill the thing he loves. The Reuters story about bots cited is from May 2 and refers to Twitter’s 10-K SEC filing of the same date. The implication here is that Musk’s due diligence process has thrown up something that contradicts a regulated statement Twitter made to shareholders, and has been making every year.

As well as potentially triggering the deal Material Adverse Effect clause and voiding the break fee (if justified) this puts Twitter in a very bad place. It’s an even worse place than the microblogging website was in already, with management in flux and the product reportedly mothballed for its own safety.

Now, rather than going private for a bit of R&R, Twitter might end up a publicly quoted punchbag for regulators and class action lawsuits while in open warfare with its lynchpin celebrity user who’s also for the moment its biggest shareholder.

1pm GMT update, and it’s now Schrödinger’s offer, which adds the SEC to the list of people and organisations Musk has trolled this morning.

Still committed to acquisition

— Elon Musk (@elonmusk) May 13, 2022

Here’s the pre-market reaction:


This post was originally published on this site

Previous Post

Big Rigs Going Electric As Navistar, Cummins, Daimler Rev Up Next-Generation Trucks

Next Post

Congress Picks Populism Over Increased Supply With Price Gouging Legislation

PublicWire

At PublicWire, we know the vast majority of all investors conduct their due diligence and get their news online in a variety of ways including email, social media, financial websites, text messages, RSS feeds and audio/video podcasts. PublicWire’s financial communications program is uniquely positioned to reach these investors throughout the U.S. and Canada as well as on a global scale.

Related Posts

Technology

Sony’s strategy stymied by shortages

May 27, 2022
0
Technology

There is no such thing as ‘data’

May 27, 2022
0
Technology

CD Projekt: delays have switched shareholders off

May 27, 2022
0
Technology

Twitter refuses to remove Silver Lake’s Egon Durban from board

May 27, 2022
0
Technology

Klarna boss puts brave face on buy now, pay later problems

May 27, 2022
0
Technology

Whirlwind talks led to Broadcom’s $69.1bn capture of VMware

May 27, 2022
0
Next Post

Congress Picks Populism Over Increased Supply With Price Gouging Legislation

Please login to join discussion

Subscribe To Our Newsletter

Ad
PublicWire | Emerging Market Stock News 24/7 | Investor Relations US Stock Market

© Copyright 2022 PublicWire.com

Navigate Site

  • About
  • Contact Us
  • Disclaimer
  • Watch LIVE
  • Privacy Policy
  • Terms and Services
  • Contributors

Follow Us

No Result
View All Result
  • LIVE Investor News Channel
  • Cannabis
  • Energy
  • Finance
  • General
  • Medical
  • Podcasts
  • Retail
  • Technology
  • Videos

© Copyright 2022 PublicWire.com

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.