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(CNBC)   Elon Musk demands the SEC investigate someone for stock manipulation. That's the joke   (cnbc.com) divider line
    More: Facepalm, U.S. Securities and Exchange Commission, Elon Musk, informal Twitter poll, Twitter, shortseller enrichment commission, SEC, Twitter's murky metrics, last month  
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555 clicks; posted to Business » on 17 May 2022 at 8:21 PM (13 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



25 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-05-17 5:31:54 PM  
Musk agreed to buy Twitter last month for $44 billion, but has since said the deal is on pause as he looks into bots, spam and fakes

He didn't know that before he made the offer?
 
2022-05-17 8:14:50 PM  
He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.
 
2022-05-17 8:24:52 PM  
Phony Stark
 
2022-05-17 8:37:24 PM  

Rapmaster2000: Phony Stark


Pedo stark
 
2022-05-17 8:38:37 PM  

Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.


All the tech sticks have done nothing but go down since he first bought twitter. He's looking for an exit with out paying $1billion
 
2022-05-17 8:41:29 PM  

Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.


It's not that simple. Fake accounts only allow him to legally breach the contract and pay the fee **if** he can show they are substantially affecting Twitters finances. So basically, Twitter has to have been committing a massive fraud on all of its 10k reports for years.

Twitter of course will claim it's a minor issue and could sue Musk to force him to go through with the acquisition.

Musk is in a precarious spot - you cannot easily walk away from these types of deals.
 
2022-05-17 8:42:36 PM  
Elon Musk demands the SEC investigate someone for stock manipulation. That's the joke

I disagree. The SEC is more of a punchline than an actual joke.
 
2022-05-17 8:44:56 PM  
Muddy the waters enough, and you can hide the biggest of sharks.

This is what happens when you gut regulators. He is able to defraud whomever, hide whatever, do whatever, and when he thinks he is not getting the best deal, he will point a finger and throw the regulators off the trail. At the very least, he distracts everyone from what he is doing. At best, he gets huge federal agencies working on his behalf.
 
2022-05-17 8:56:33 PM  

jjorsett: Elon Musk demands the SEC investigate someone for stock manipulation. That's the joke

I disagree. The SEC is more of a punchline than an actual joke.


What does that even mean?
Why do you even exist?
 
2022-05-17 9:26:54 PM  

jjorsett: Elon Musk demands the SEC investigate someone for stock manipulation. That's the joke

I disagree. The SEC is more of a punchline than an actual joke.


I don't know, they've won more national championships in football than anybody else.
 
2022-05-17 9:48:34 PM  

thornhill: Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.

It's not that simple. Fake accounts only allow him to legally breach the contract and pay the fee **if** he can show they are substantially affecting Twitters finances. So basically, Twitter has to have been committing a massive fraud on all of its 10k reports for years.

Twitter of course will claim it's a minor issue and could sue Musk to force him to go through with the acquisition.

Musk is in a precarious spot - you cannot easily walk away from these types of deals.


Incorrect. You almost never get specific performance for an M&A deal. You have to show that you have no adequate remedy at law and that damages are insufficient -- basically, that the death of the deal would mean the death of the company. Almost never happens.

If he walks, Twitter will get the reverse breakup fee.
 
2022-05-17 9:49:11 PM  
The government is a bad influence on Twitter.

"But, oh help me justify a fantasy case against Twitter," says Elon.

"Oh, and don't hold me to any promises that I made previously because I'm like Putin, radioactive."
 
2022-05-17 10:06:56 PM  

thornhill: Musk is in a precarious spot - you cannot easily walk away from these types of deals.


Good thing he can easily get away in one of his Boring tunnels.
 
2022-05-17 10:13:34 PM  
He buys the stock on the cheap, runs the price up with a fake bid, and then not only has the Twitter board call his bluff, but to save face he agrees to a quickie deal, figuring he can line up enough suckers that he won't have to risk anything.  And now he's on the hook for the $1 billion break-up fee.  I love a story like this that has no good guys in it.
 
2022-05-17 10:26:16 PM  
I'm surprised he and other influential people on the Right are constantly blabbering about Twitter and social media. If it weren't for paid bot / troll disinformation farms on Twitter and Facebook in 2016, along with the Cambridge Analytica data, their guy Trump wouldn't have gotten elected. This new far-right Trumpist breed of GOP wouldn't have gained the ground it has.

If I were anyone in the GOP or Right winger, I'd be wanting to make a few waves as possible about social media in hopes to exploit that again. This is gonna end up backfiring on them.
 
2022-05-17 10:36:25 PM  
Fark user imageView Full Size


Projection much Elon?
 
2022-05-17 10:37:33 PM  
Let him play with Twitter. Tesla and SpaceX get SO much more work done when he's not around.
 
2022-05-17 11:33:06 PM  

thornhill: Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.

It's not that simple. Fake accounts only allow him to legally breach the contract and pay the fee **if** he can show they are substantially affecting Twitters finances. So basically, Twitter has to have been committing a massive fraud on all of its 10k reports for years.

Twitter of course will claim it's a minor issue and could sue Musk to force him to go through with the acquisition.

Musk is in a precarious spot - you cannot easily walk away from these types of deals.


Maybe the plan is to bring down Twitter by forcing a closer look at their business. They have likely been playing fast and lose with their use statistics to keep the advertisers and investors happy, and this could blow up their ad revenue.

It would be hilarious if the Twitter buyout also brought down Meta by calling their numbers into question as well.
 
2022-05-17 11:40:18 PM  
Have the SEC investigate twitter.  If there are more than 5% bots and spammers, shut down twitter.  Just pull the plug on the servers.  No graceful shutdown.

If threre is 5% or less, have elon forfeit all his companies and assets to the government.

Problem solved.
 
2022-05-18 12:14:50 AM  

Mugato: Musk agreed to buy Twitter last month for $44 billion, but has since said the deal is on pause as he looks into bots, spam and fakes

He didn't know that before he made the offer?


Apparently he/his lawyers didn't do much due diligence...
 
2022-05-18 5:50:55 AM  

AmbassadorBooze: Have the SEC investigate twitter.  If there are more than 5% bots and spammers, shut down twitter.  Just pull the plug on the servers.  No graceful shutdown.

If threre is 5% or less, have elon forfeit all his companies and assets to the government.

Problem solved.


The 5% number comes from a survey Twitter did in 4Q of 2021 and referenced in the 1Q 10Q.  Any proof of wrongdoing would have to come from that time period.  When Elon submitted his offer, he based it on the claim from 2021.  The number of bots now on Twitter is irrelevant to Elon's offer.
 
2022-05-18 8:58:30 AM  

AmbassadorBooze: Have the SEC investigate twitter.  If there are more than 5% bots and spammers, shut down twitter.  Just pull the plug on the servers.  No graceful shutdown.

If threre is 5% or less, have elon forfeit all his companies and assets to the government.

Problem solved.


"have the SEC investigate..."

Good one! I'll post that in the Thursday joke thread.
 
2022-05-18 10:43:19 AM  

Super Chronic: thornhill: Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.

It's not that simple. Fake accounts only allow him to legally breach the contract and pay the fee **if** he can show they are substantially affecting Twitters finances. So basically, Twitter has to have been committing a massive fraud on all of its 10k reports for years.

Twitter of course will claim it's a minor issue and could sue Musk to force him to go through with the acquisition.

Musk is in a precarious spot - you cannot easily walk away from these types of deals.

Incorrect. You almost never get specific performance for an M&A deal. You have to show that you have no adequate remedy at law and that damages are insufficient -- basically, that the death of the deal would mean the death of the company. Almost never happens.

If he walks, Twitter will get the reverse breakup fee.


Sorry, bud, you're wrong on this.

The "specific performance clause" can force Musk to go through with the deal. If Musk breaks the contract, he's going to get slammed with lawsuits. The only way he can walk away from the deal without suffering financially is by arguing a "material adverse event," which he's trying to do with the fake users. But here's the problem there: He was the one who rushed the deal through -- it's his fault for not doing enough due diligence.

The $1 billion break up fee is for situations where something out of control wrecks the deal -- it is absolutely not a penalty for breaking a contract. If it was that simple for Musk to walk away, then he wouldn't be trying to drag the SEC into this -- he'd just tell Twitter that he's going to eat the $1 billion unless they lower the price substantially.
 
2022-05-18 1:08:29 PM  

thornhill: Super Chronic: thornhill: Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.

It's not that simple. Fake accounts only allow him to legally breach the contract and pay the fee **if** he can show they are substantially affecting Twitters finances. So basically, Twitter has to have been committing a massive fraud on all of its 10k reports for years.

Twitter of course will claim it's a minor issue and could sue Musk to force him to go through with the acquisition.

Musk is in a precarious spot - you cannot easily walk away from these types of deals.

Incorrect. You almost never get specific performance for an M&A deal. You have to show that you have no adequate remedy at law and that damages are insufficient -- basically, that the death of the deal would mean the death of the company. Almost never happens.

If he walks, Twitter will get the reverse breakup fee.

Sorry, bud, you're wrong on this.

The "specific performance clause" can force Musk to go through with the deal. If Musk breaks the contract, he's going to get slammed with lawsuits. The only way he can walk away from the deal without suffering financially is by arguing a "material adverse event," which he's trying to do with the fake users. But here's the problem there: He was the one who rushed the deal through -- it's his fault for not doing enough due diligence.

The $1 billion break up fee is for situations where something out of control wrecks the deal -- it is absolutely not a penalty for breaking a contract. If it was that simple for Musk to walk away, then he wouldn't be trying to drag the SEC into this -- he'd just tell Twitter that he's going to eat the $1 billion unless they lower the price substantially.


And those clauses are rarely enforced. See for example the Shearman & Sterling article, esp. footnote 11 and related text. Although it does acknowledge that the existence of such a clause does increase the chances of prevailing, marginally.
 
2022-05-18 3:19:10 PM  

Super Chronic: thornhill: Super Chronic: thornhill: Private_Citizen: He's crashing the price to renegotiate a lower price. I say the deal gets cancelled, he pays the billion dollar fee, and walks away.

It's not that simple. Fake accounts only allow him to legally breach the contract and pay the fee **if** he can show they are substantially affecting Twitters finances. So basically, Twitter has to have been committing a massive fraud on all of its 10k reports for years.

Twitter of course will claim it's a minor issue and could sue Musk to force him to go through with the acquisition.

Musk is in a precarious spot - you cannot easily walk away from these types of deals.

Incorrect. You almost never get specific performance for an M&A deal. You have to show that you have no adequate remedy at law and that damages are insufficient -- basically, that the death of the deal would mean the death of the company. Almost never happens.

If he walks, Twitter will get the reverse breakup fee.

Sorry, bud, you're wrong on this.

The "specific performance clause" can force Musk to go through with the deal. If Musk breaks the contract, he's going to get slammed with lawsuits. The only way he can walk away from the deal without suffering financially is by arguing a "material adverse event," which he's trying to do with the fake users. But here's the problem there: He was the one who rushed the deal through -- it's his fault for not doing enough due diligence.

The $1 billion break up fee is for situations where something out of control wrecks the deal -- it is absolutely not a penalty for breaking a contract. If it was that simple for Musk to walk away, then he wouldn't be trying to drag the SEC into this -- he'd just tell Twitter that he's going to eat the $1 billion unless they lower the price substantially.

And those clauses are rarely enforced. See for example the Shearman & Sterling article, esp. footnote 11 and related text. Although it does acknowledge that the existence of such a clause ...


Does anything about this deal feel normal to you? How many other mergers of this magnitude were so rushed, with the buyer so aggressively trashing the company he's buying while the deal is pending.
 
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