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Twitter facing a 'disaster scenario' as Elon Musk says he is terminating $44B acquisition

Elon Musk To Buy Twitter

Scott Olson/Getty Images News

Reaction to Elon Musk saying he was terminating his $44B acquisition on Twitter (NYSE:TWTR) was swift, Friday, with the social-media company being seen as wounded and staggering and likely headed to court against the Tesla (

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Time for this tread to be retired.
Mudge is telling the world that both India and China have inside people gathering American information. How can anyone not think this is a crime for this to continue. If this goes on and they are only thinking of ad revenue, just how many of their DUA are real and how many bots are there really? Trash company or traitors to this country for profit?
Musk is a master marketing genius, and a terrible human being.
JunkBondage profile picture
Inaccurate headline. Musk, not TWTR, is the one facing a “disaster scenario” as a DE judge will force him to complete the deal and sell loads of his rubbish TSLA stock to fund it.
houtex profile picture
Read up on the history of ET and WMB. Very similar situation where the buyer wanted to back out because of market conditions. So they found a pretense to back out of the deal (not a MAE), were sued, and won. It’s not 100% that the Del Chancery Court is going to side with TWTR here even though I 100% agree that would be the appropriate thing to do based on the intent of the contract that was signed. Ultimately technicalities can be found and argued. I hope Musk loses but contracts are complicated things and there can be surprises lurking in them.
JunkBondage profile picture
@houtex Worth noting, thank you. In that deal the party that scuttled the deal (ET) had to pay the break fee to the aggrieved party (WMB). It's a different fact set, (I don't know if there was a specific performance provision in their contract) but it points to the fact that, at a minimum, Musk will need to pay the $1 billion break fee, but I still feel more likely, he'll be compelled to complete the deal if TWTR can show his "bot" arguments are nonsense.

houtex profile picture
WMB sued for specific performance, yes. That’s kind of a buzzword now but it’s the whole purpose of a merger agreement. Public companies do not sign merger agreements they can’t enforce.

I would point out that the $410 was a special feature of that deal. On signing the agreement WMB cancelled its own agreement with WPZ and had to pay WPZ $410 million and this just made WMB whole. ET actually argued that *it* was entitled to a separate $1.48 billion break fee. It wasn’t a terrible argument based on the words of the merger agreement if I recall but it kind of got the “you have to be joking” treatment and was dismissed.
Who Cares......
Not Me!
@HereToWin Based on the fact that you pulle dup the article and commented on it, you musk care.

Winnertakesall profile picture
He's probably realizing that he has no real advantage in the EV space and theoretically the company isn't worth more than 1/40th the market cap. He's just looking for excuses to sell tesla stock without a near term collapse.
achilleus profile picture
@Winnertakesall check out moderna executives with the weekly dumping of shares

eeeW profile picture
09 Jul. 2022
musk is still the same monumental AH he has always been
I told you fanboys two months ago that Musk was not going to pay $54 a share for TWTR or pay a $1 billion break-up fee.

I told you fanboys that two months later, you would be parroting whatever half-a$$ed excuse he came up with for welching out on the deal.

Should I go back through what all of you fanboys said at the time?
User 16760062 profile picture
Ironically Elon could very well turn around and buy DWAC
@User 16760062 Please yes!
Joey Joe Joe profile picture
Klymochko, who estimates that he has invested in/analyzed over 2,500 mergers over the last 15 years, told Benzinga previously that Musk can not walk away from the deal.

What Past History Says: Klymochko pointed to past history showing that Musk’s case for a material adverse effect is unlikely to succeed.

“Terminating a merger deal based on a MAE is extremely difficult, and has only happened once in history (Acorn v. Fresenius). This successful MAE-based merger termination occurred after the target’s business completely fell apart,” Klymochko said.
houtex profile picture
@Joey Joe Joe
The effort to walk away is not based on claiming an MAE, though.
What is twitter? Who cares? People that think they are important!
deercreekvols profile picture

Twitter is the company that Elon Musk offered $54.20 a share to buy.

It is the chosen social media site of Elon Musk to share Tesla news, SpaceX news, and for him to interact with his followers.

You knew this of course.
What you say is true however, he planned to do a lot more than make sure his companies were promoted. Such as clean it up by sending the haters packing, bring back many who left besides add new ones. Adding new programs/incentives would see advertisers return and into a respectable social media site/townhall.
DWAC for the win.
Reads like Wedbush is short Twitter.....and also wondering how many businesses Dan Ives analyzes.
polecat profile picture
dont know about twtr but this site is overrun with bo ts
dr.darkpool profile picture
Musk lanced the boil that is (or was) Twitter.
deercreekvols profile picture

Musk owns over 73,000,000 shares of this boil.
Musk could have looked at the books under DD due diligence. He forfeited this so he could expedite the deal. Now he's saying they didn't give him the information about the Bots? I don't believe that will hold up in court. This will be a long drawn out legal mess. Musk must pay and will. In the meantime Elon will be moving on to play with his next Mouse. Musk could care less about what the legal costs and the $44 billion to acquire. It's all fun and games to him.
@Jon Brien
His mistake was trusting them all including Dorsey. One should Verity then trust.
georgefelix75 profile picture
@Jon Brien Yeah but he has a huge ego that’s also in play. On Bloomberg he was referred to as quirky with a snicker from the others on screen. Frame it how you wish it wasn’t respect.
@Up and Away his mistake is his hubris. He is not the smartest guy in the room.
Yea like musk isn't the smartest guy on the planet . IF you think you know more then him show me the money
@stevewin the ability to make money and intelligence are not highly correlated.
polecat profile picture
@blenkep and u find intelligence at our liberal arts universities?
@polecat while your comment is not related to the subject under discussion it will be dealt with.

The foundation of any successful civilization is a quality educational system. American science and technology is unmatched in the world and is a result of the these universities. Basically all the conveniences you enjoy were developed at these universities. Even your favorite politicians (Cruz, Trump etc) were graduates of these institutions.

Anyone who has attended one of our universities understands that all points of view thrive within this system. Even with cancel culture on both sides freedom of conscience cannot be controlled and opinions over the spectrum continue to thrive.

So, yes I do find intelligence at our universities.
I wonder if Jack Dorsey, now a friend of Musk's and the longtime Twitter CEO not so long ago, might turn out to be of crucial importance here. It wouldn't shock me if Musk, closely advised by him, has very knowingly been just toying with Twitter management and senior staff.

His emphatically saying that if anyone could fix the company it's Musk, to me at least, hinted broadly that he knows where there are stinking corpses buried in TWTR's servers. In other words, the matter could turn on his testimony or affidavits as it wends its way through legal proceedings.

I'm inclined to suspect that Musk, a man with proven skills in analyzing complex situations, then planning far ahead and executing responses, has some idea what he's doing.
Dale Roberts profile picture
I just went on Twitter. It still works.
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