Do you think Elon gets permanently banned from Twitter if he backs out of the deal?

[Neroon]

1 hour ago, Mark Kaine said:

doesn't he just have 10% or so?

 

also i cant say that makes any sense.

 

 

hostile takeover:  prices should go down

 

hostile takeover avoided: prices should obviously go up!

 

(thats besides Twitter being basically worthless so nothing of this makes sense, but thats "stock market" for you, I guess!)

The stock market in theory should be about current profits + potential profits, but then there are companies like Twitter and Tesla. Tesla is worth more than I believe the entire car industry, yet they aren't even close to Toyota's numbers.

 

It doesn't need to make sense, all you need to believe in, is that the stock will go up, and Tesla being a massive BS stock, it's so far from being close to it's worth anyway, that no one cares anymore. Largest automakers by market capitalization (companiesmarketcap.com)

[TejasBishnoi]

No i don't think so because if he does he have a lot of people backing him up so the answer is no...

[Ultraforce]

3 hours ago, aisle9 said:

If musk sells off his stake in Twitter, the stock collapses. Then he buys it all back cheaper.

That's probably would be an example of something that could easily get him in trouble with the SEC since that sounds like market manipulation in ways that may or may not be legal, I don't know I'm not a lawyer, it would definitely be a scummy type thing to do but scum is as scum does.

[SimplyChunk]

Hopefully when he does back out it'll be the final nail in Twitter's warped head

[Neroon]

7 hours ago, TejasBishnoi said:

No i don't think so because if he does he have a lot of people backing him up so the answer is no...

Who would that be? Legally he has no leg to stand on unless he can proof that Twitter either witheld information or faked information in their documents, including to the SEC.

 

If not, he is just screwed because the law doesn't support him in this, and consider he constantly takes a piss on the SEC, they won't help him unless he is right.

[aisle9]

13 hours ago, Mark Kaine said:

doesn't he just have 10% or so?

 

also i cant say that makes any sense.

 

 

hostile takeover:  prices should go down

 

hostile takeover avoided: prices should obviously go up!

A selloff of 10% of any company would murder the stock price, and a failed takeover bid would do the same. "Why did he back out?", would be an immediate and fair question for investors.

11 hours ago, Ultraforce said:

That's probably would be an example of something that could easily get him in trouble with the SEC since that sounds like market manipulation in ways that may or may not be legal, I don't know I'm not a lawyer, it would definitely be a scummy type thing to do but scum is as scum does.

Good luck proving that was his intent all along. If he's being smart in his written and recorded communication and just saying that he's not comfortable with the risks Twitter poses, or that the risks he's uncovered have lowered his valuation of it, he's in really good shape legally. Besides, he could literally buy the entire SEC, so being scummy really isn't a concern for him.

[Ultraforce]

31 minutes ago, aisle9 said:

A selloff of 10% of any company would murder the stock price, and a failed takeover bid would do the same. "Why did he back out?", would be an immediate and fair question for investors.

Good luck proving that was his intent all along. If he's being smart in his written and recorded communication and just saying that he's not comfortable with the risks Twitter poses, or that the risks he's uncovered have lowered his valuation of it, he's in really good shape legally. Besides, he could literally buy the entire SEC, so being scummy really isn't a concern for him.

You can't litterally buy federal agencies in the USA currently. Organizations like the SEC are kind of necessary because there's people like him who commit securities fraud. I understand it's down to political and economic views, however most people probably want there to be some level of punishment for someone committing securities fraud.

[rrats]

I don't think it's possible to buy SEC like that

[aisle9]

5 minutes ago, Ultraforce said:

You can't litterally buy federal agencies in the USA currently. Organizations like the SEC are kind of necessary because there's people like him who commit securities fraud. I understand it's down to political and economic views, however most people probably want there to be some level of punishment for someone committing securities fraud.

3 minutes ago, rrats said:

I don't think it's possible to buy SEC like that

You both kind of missed the point.

[Neroon]

The word you were looking for is 'bribe', and that might be more effective if 1. the SEC probably wants to spit in his face considering how much crap he gives them, and 2. plenty of other people with more influence then Musk, like to see him fall. I don't see the SEC giving him a pass. 

Don't get me wrong, the SEC is a very incapable organization, but I assume this would end up in front of a courtroom, not the SEC, if he tries to pull out.

As for him being uncomfortable about the risk of Twitter, well guess what, nothing has changed, he had the exact same info available to him, when he made the bid. You can't back out because of cold feet, while absolutely nothing has changed.

Remember, Musk pretends that new info came to light, but in reality it's the same info that was always available to him, meaning either he didn't do his DD properly, or he's full of shit. In his case it could be both, but stupidity is not an actual defence, especially in these cases.