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1. Twitter stock drops significantly
2. Stock owners refuse to sell to Musk
3. Musk claims Twitter broke the deal
4. Twitter has to pay Musk 1 billion Dollar
5. Musk now has 1 billion Dollar more
6. End of story

Oh. I forgot the last step. Deal falls through, Tesla stock goes up. Musk has even more now :)

@jwildeboer Tesla up significantly. Musk is a criminal.

@jwildeboer I knew that already but this guy doesn't even hide it in plain sight.

@jwildeboer
I don't quite understand how those deals are usually going on. Did Musk already pay for shares, and did he buy them from twitter, or did he buy them from other stock holders? Or is Musk just going to sell all he bought earlier, but at the price he bought his shares? How?

@mithos In its very simplest form: Musk makes an offer, proves that he has the money, Twitter board agrees, calls all stock holders to make a binding sell offer to Musk in a defined period of time, at the end of said period it is checked if he can buy more that 90% of Twitter stock (or 95% or 99%, depends on deal construction). If goal reached, deal done.

@mithos If twitter cannot motivate enough stock holders to sell, deal falls through and Twitter owes Musk a billion dollar.

@jwildeboer wait, what? Why? Why would twitter have to pay a billion dollar? Why is twitter responsible for the success of the deal? Why would any sane company agree to these conditions?

@mithos You are asking for logic and common sense in the hyper capitalist world of today? On your side, but sorry to disappoint you :( That's not how any of this works anymore.

@asthargf Not really, but sort of. The deal is constructed in a rather straightforward way. Musk offers a price per stock that is above current trading price. Twitter agrees to accept the deal. This means twitter now bears the responsibility to convince all stock holders to sell to Musk at the agreed price. @mithos

@jwildeboer @mithos I believe you, really. But to my uninitiated mind it sounds like a bet 😅 Like:

Musk: I bet you can't sell at this price.
Twitter: yes we can
Twitter:...
Twitter: oh no, we couldn't 😭 Now we have to pay

@asthargf TBH and IMHO, all stock and derivative deals look and feel like gambling to me ;) @mithos

@asthargf @mithos The simplest description is:

Musk: “Here. I put $44B on the table. You got until date X to put all Twitter stock on the same table. If you deliver, I take the stock and the $44B get distributed among the stock owners. If you fail, I keep the $44B and you owe me another $1B. If I walk away with the money and don’t buy the stock though it’s on the table, I owe you $1B”

@jwildeboer April: »Twitter agreed to sell itself to Mr. Musk for $54.20 a share, a 38 percent premium over the company’s share price this month«

Why should stock owners refuse to sell it to Musk especially NOW?

nytimes.com/2022/04/25/technol

Ich hätte wetten sollen. Hatte ich doch gleich gesagt.

Mit #deepl von #fdroid übersetzt

1. Twitter-Aktie fällt deutlich
2. Aktienbesitzer weigern sich, an Musk zu verkaufen
3. Musk behauptet, Twitter habe die Vereinbarung gebrochen
4. Twitter muss Musk 1 Milliarde Dollar zahlen
5. Musk hat jetzt 1 Milliarde Dollar mehr
6. Ende der Geschichte

@jwildeboer This is nothing short of criminal. Rules for thee, rules for me.

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