Musk & Twitter
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Uh-oh.
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Fight…!
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I for one am shocked...
What happened to all the cash he raised to pay for it??
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@mariner4life said in Tech, monopolies, censorship:
I for one am shocked...
What happened to all the cash he raised to pay for it??
That's what.
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@Duluth That opinion runs contrary to everything I have read and heard on the subject. It is a very high burden of proof Musk has to provide. A bar that has apparently only been achieved once previously
Proving their are more bots than Twitter said is not enough to get Musk off the hook so why would Twitter drop their price?
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@dogmeat said in Tech, monopolies, censorship:
@Duluth That opinion runs contrary to everything I have read and heard on the subject. It is a very high burden of proof Musk has to provide. A bar that has apparently only been achieved once previously
Proving their are more bots than Twitter said is not enough to get Musk off the hook so why would Twitter drop their price?
Twitter have made declarations that they have less than 5% bots on the platform, now they have to prove this in court - with information they have been withholding.
Even if Elon loses, if it comes back with the 20% that has been estimated it's going to tank twitter's stock and make people question the value of the platform. Looks like a lot of people are arguing with computers.
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@dogmeat said in Tech, monopolies, censorship:
@Kirwan What I have read and heard is even if Musk proves ther 5% is wrong he won't win a court battle
That's besides the point. Twitter will liable for false statements to the market (and potentially congress), has jail implications and price implications for the stock.
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@Kirwan I think they will use the best guess argument. The share price has already tanked. If they can't get Musks money what is their strategy. they have already laid off thousands of staff.
Shit company delivers shit result. Go figure...
the mystery is why Musk made the offer he did.
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@dogmeat To be fair we don’t know what was in the heads of agreement for the purchase. It may have alluded specifically to verification of material data. IANAL but if it turns out that Twitter’s stock price was inflated by their materially understating a key metric, which not just Musk, but the entire market relied on he could be in a position to renegotiate a more realistic price or withdraw the offer. Most merger or acquisition offers that I’ve seen / been involved in have conditions.
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Looks like Elon gave up some interesting stuff in the negotiations.
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@Kirwan said in Tech, monopolies, censorship:
@gt12 Well, so Twitter say.
It will be interesting to see what happens. Personally I think that if it gets to a judge, a ruling for Twitter is essential to make sure that contracts are enforced (this seems pretty airtight).
I don’t think it will get to court though.
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@Kirwan said in Tech, monopolies, censorship:
@gt12 it’s airtight when you hear from one side.
I 100% think that Twitter underestimates bots on the platform btw, but whether that is material or not will depend on the judge. I think it is acknowledged as a risk, and it is 'kind of' public knowledge to investors anyway, so whether it is 'material' or not might be hard to prove.
I'm wrong a lot though, so it's going to be fun to watch.
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@gt12 my understanding is it’s illegal to falsify company metrics, especially a key one that drives up the stock price. If it comes out that they new the bots were higher than they declared someone is going to jail.
And the stock price is going going to tank further.
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@Kirwan said in Tech, monopolies, censorship:
@gt12 my understanding is it’s illegal to falsify company metrics, especially a key one that drives up the stock price. If it comes out that they new the bots were higher than they declared someone is going to jail.
And the stock price is going going to tank further.
My understanding is that they'd have to prove that they did it on purpose to mislead investors and that it had a material effect, so just it being wrong isn't enough. From memory, I think they state that it is an estimation, so therefore likely to be incorrect. As a result, investors wanted to purchase the company with a concern about that would need to do their due diligence, which he specifically gave up as part of the deal. So, it will be interesting to see which way the courts go on this.
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Oh, brother.