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A comment on Notice of termination of Twitter merger agreement. Parent comment

Re:Notice of termination of Twitter merger agreement by tptacek on Saturday July 09, 2022 @12:55AM (#32031848)
They can't just demonstrate "fraud" or "gross negligence". They have to demonstrate a "material adverse effect", which, as Matt Levine shorthands it, is something on the order of a 40% drop in profitability --- not the stock price, but the fundamentals of the company. Not happening.
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Re:Notice of termination of Twitter merger agreement by 1R on Saturday July 09, 2022 @02:17AM (#32032375)
What if 40% of the percentage of users that twitter proposes are real people are actually bots? Wouldn't that qualify as material adverse effect?
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Re:Notice of termination of Twitter merger agreement by JumpCrisscross on Saturday July 09, 2022 @05:32AM (#32033389)
> Wouldn't that qualify as material adverse effect?

Probably not. There has been one MAC finding in the history of MACs. It was a trifecta of fraud, management throwing in the towel the moment the merger was agreed and a massive revenue drop.

Musk’s only hope is to get his banks to pull financing. That’s going to be tough.

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Re:Notice of termination of Twitter merger agreement by jakelazaroff on Saturday July 09, 2022 @08:53AM (#32034615)
Would that even work, though? It’s not like he can’t afford it; his money is just tied up in TSLA. Presumably the court can force him to liquidate his shares if his lenders somehow back out.
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Re:Notice of termination of Twitter merger agreement by HWR_14 on Saturday July 09, 2022 @11:10AM (#32035760)
No, I the two conditions other than a materially adverse effect that lets Musk back out are if his debt financing falls through or if the government stops it.
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Re:Notice of termination of Twitter merger agreement by hef19898 on Saturday July 09, 2022 @04:21AM (#32033064)
Propably not if those users can, and are, monetized.
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Re:Notice of termination of Twitter merger agreement by tptacek on Saturday July 09, 2022 @01:57AM (#32032237)
All I know is, he's a former M&A lawyer, unlike any commenter here.
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Re:Notice of termination of Twitter merger agreement by couchand on Saturday July 09, 2022 @01:52AM (#32032213)
20% is on the order of 40%
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Re:Notice of termination of Twitter merger agreement by shkkmo on Saturday July 09, 2022 @02:42PM (#32038066)
"in/on the order of" does not mean "the same order of magnitude as" by rather "approximately the same as".

Nobody would call 20% approximately the same as 40% so you are incorrect.

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