Due to the market drop the dollar figure is now more expensive relatively speaking. I would not be surprised if some lawsuits fly back and forth and the deal winds up going through at a valuation that is similar in relative terms to the offer when it was made but different numerically.
I have no idea what that means. You think they negotiate to 53.69/share so Musk can save some face?
So they could agree to a new lower price and Twitter shareholders would still make the same money relative to the recent value of the stock and Musk would take a similar ding relative to his net worth.
It's like if you agree with someone's heirs to buy something after the current owners croaks but the current owner takes long enough to croak that the market for that thing changes. The typical path forward is to re-adjust so the deal is just as fair for both parties as it used to be and get on with it. But because of the dollar figures involved here the parties will sue each other instead of exchanging emails/texts like normal people looking to buy and sell stuff do.
What? So let's imagine I bought 10000 shares of TWTR in 2018 for $25. And now Musk wants to revise the offer down from 54.20 down to 34.20. Why should I accept a $200k smaller return, just to be more "fair to Elon" in terms of the effect on his net worth?
Or worse, what if I bought 10000 shares close to the peak? Why should I accept a $200k larger loss on the stock?
He made a contract to pay a certain price - it's in no way a wash to shareholders if he wants to pay less. He just made a bad deal. Nobody forced him to sign a contract to acquire Twitter at that price.
It doesn't make Elon look great, but some of the other theories…
- he wants to feed his ego because he doesn't already have enough to feed his ego
- he wants to make money because he doesn't have enough money
- he wants to grief twitter because it's such a good tool for him and he uses it every day
- he wants to get more people to preorder cars since the waiting line is only a year right now
...are just bonkers.
If Twitter had gone through the current tech market drop, without Musk hanging over it, it could easily be down 60-70%, maybe even 80%.
Twitter is a terrible business on paper with the current board. It wouldn't have done well in this tech crash.
Musk must be pretty annoyed that if he had waiting about 30 days he could have gotten twitter for 60% less money.
Consumer law gives you certain protection varying from place to place because it is impossible to verify what you buy online, but a bid on the stock of a public company is not an Amazon purchase and hence does not have the same kind of protections.
And in a way that is Elon's play: to claim that he put that bid in with important information being withheld by the company that would have had a material effect on the bid price. A reasonable person might take the position that Elon should have done his due diligence before making that bid.
WeWork failed at that, and even the slightest increase in intrest rates might doom thosr businesses. We will see so.
Good that you survived so, facing of against 30 million in funding isn't easy, regardless of how stupid that money is.
It's an execution of the contractual terms, not an annulment of the contract.
The whole tech field, including Tesla and Twitter has seen stock prices drop.
Yes Musk can leverage less money, but he also has to spend less to buy Twitter.