Jump to content

Recommended Posts

  • Moderator

Struggling just to keep up with the commentary. It's wild that a company that still has yet to make a profit get this kind of treatment. If I'm reading it right, current shareholders are locked in and their shares will just be straight out sold?

Quote

Musk has said he would open up the website’s algorithm, putting content moderation decisions into clear view, although some researchers have said that would be difficult. He has also pushed for simple, broadly popular changes such as adding an edit button, as well as pledging to eliminate spam bots. And he has said he wants to open up Twitter’s verification process to more users, so the authenticity of accounts can be determined more easily.

FULLSSGBUEI6ZNO7D65GDJTMOU.jpg&w=1440

The company’s board and the Tesla CEO reached an agreement on his $54.20 a share bid.

 

social

Billionaire says he doesn’t care about making money from the business but cares about freedom

 

Steve

Kill slow play. Allow walking. Reduce ineffective golf instruction. Use environmentally friendly course maintenance.

Awards, Achievements, and Accolades

  • nevets88 changed the title to Elon Musk Set to Buy Twitter
  • Moderator

Looks like Twitter was ready to do the poison pill. And then Musk got around it. From Post piece.

Quote

The strategy, known as a shareholder rights plan, would let investors buy Twitter stock at a discounted price unavailable to Musk. The flood of new shares would potentially make it prohibitively expensive for Musk to buy the company.

Then Musk outlined his financing last week, saying he secured $46.5 billion through loans by banks, including Morgan Stanley, and his own equity.

The company’s board of directors met with Musk on Sunday, and negotiations extended into the early hours of Monday, according to another person familiar with the negotiations, who spoke on the condition of anonymity because of the sensitivity of the discussions. The two sides were focused on determining whether Musk had the financing to complete the acquisition, and did not spend much time discussing Musks’s strategy for the future of the social network, the person said.

 

Steve

Kill slow play. Allow walking. Reduce ineffective golf instruction. Use environmentally friendly course maintenance.

Awards, Achievements, and Accolades

  • 2 months later...

Sounds like the deal is off!  Now Elon is trying to figure out how to avoid paying the 1 billion termination fee:

 

bc6d9aa0102d2f6b6b0039c49ab68f57

If Elon Musk follows through on breaking his $44 billion agreement to buy Twitter, he could be setting himself up for a big legal fight — and potentially a $1 billion breakup fee.

 

Awards, Achievements, and Accolades

He might be trying to buy at a lower price.   Plenty of time to settle before this hits a court date.   Personally I hope he gets his ass handed to him 

—Adam

 

Awards, Achievements, and Accolades

  • Moderator
3 hours ago, imsys0042 said:

He might be trying to buy at a lower price.

I’m not sure he can. He negotiated the price and he waived his right to due diligence so afaik his argument that he’s backing out because Twitter is full of bots is moot.

Bill

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” - Confucius

My Swing Thread

Awards, Achievements, and Accolades

9 hours ago, billchao said:

I’m not sure he can. He negotiated the price and he waived his right to due diligence so afaik his argument that he’s backing out because Twitter is full of bots is moot.

Yea, I think he is stuck on this one. 

Hey, go in there Elon and destroy the bots 🙂

Matt Dougherty, P.E.
 fasdfa dfdsaf 

What's in My Bag
Driver; :pxg: 0311 Gen 5,  3-Wood: 
:titleist: 917h3 ,  Hybrid:  :titleist: 915 2-Hybrid,  Irons: Sub 70 TAIII Fordged
Wedges: :edel: (52, 56, 60),  Putter: :edel:,  Ball: :snell: MTB,  Shoe: :true_linkswear:,  Rangfinder: :leupold:
Bag: :ping:

Awards, Achievements, and Accolades

  • Moderator
27 minutes ago, saevel25 said:

Yea, I think he is stuck on this one.

Well he doesn’t have to buy the company, but he’s trying to get out of the termination fee.

Bill

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” - Confucius

My Swing Thread

Awards, Achievements, and Accolades

48 minutes ago, billchao said:

Well he doesn’t have to buy the company, but he’s trying to get out of the termination fee.

Actually, I read an article, because of the state that Twitter was created in, which is very business friendly, the court can force him to obey the contract and buy the company. 

Matt Dougherty, P.E.
 fasdfa dfdsaf 

What's in My Bag
Driver; :pxg: 0311 Gen 5,  3-Wood: 
:titleist: 917h3 ,  Hybrid:  :titleist: 915 2-Hybrid,  Irons: Sub 70 TAIII Fordged
Wedges: :edel: (52, 56, 60),  Putter: :edel:,  Ball: :snell: MTB,  Shoe: :true_linkswear:,  Rangfinder: :leupold:
Bag: :ping:

Awards, Achievements, and Accolades

21 minutes ago, saevel25 said:

Actually, I read an article, because of the state that Twitter was created in, which is very business friendly, the court can force him to obey the contract and buy the company. 

Delaware?

Christian

:tmade::titleist:  :leupold:  :aimpoint: :gamegolf:

Awards, Achievements, and Accolades

  • Moderator
29 minutes ago, saevel25 said:

Actually, I read an article, because of the state that Twitter was created in, which is very business friendly, the court can force him to obey the contract and buy the company. 

I have a hard time picturing how they would enforce that, though. It would be easier to force him to pay the termination fee, and even then I’m sure he could just not pay or something.

Either way this deal is going to be mired in lawsuits for a long time.

Bill

“By three methods we may learn wisdom: First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest.” - Confucius

My Swing Thread

Awards, Achievements, and Accolades

1 hour ago, RFKFREAK said:

Delaware?

Yes.   Half the corporations in the US are "headquartered" there.   If you notice during a lot of big corp on corp trials, it ends up in Delaware.

1 hour ago, billchao said:

I have a hard time picturing how they would enforce that, though. It would be easier to force him to pay the termination fee, and even then I’m sure he could just not pay or something.

Either way this deal is going to be mired in lawsuits for a long time.

They can throw out his claims and hold him to the agreement.   At that point, it becomes a question if he tries to turn around and sell it.   I wonder what the Twitter board really wants.   They have a duty to do what is best, and that is usually accepting a good offer to purchase on behalf of the shareholders, however Musk represents such a disruption that you can make the case that him purchasing hurts the company and it's share price.

It's very possible that the court would order the merger through although the sheer size might make it prohibitive.   Here's a good article that summarizes the various ways this unfolds.

107062466-16528020832022-05-17t135939z_2

Here are eight possible resolutions to the Elon Musk-Twitter saga.

 

Bottom line, I think Musk has done a lot of harm to Twitter and if the deal falls through, I hope Twitter sues the hell out of him 

—Adam

 

Awards, Achievements, and Accolades

  • 3 months later...
  • Administrator

I mean… what?

Also, no politics. Keep it about the technology.

Erik J. Barzeski —  I knock a ball. It goes in a gopher hole. 🏌🏼‍♂️
Director of Instruction Golf Evolution • Owner, The Sand Trap .com • AuthorLowest Score Wins
Golf Digest "Best Young Teachers in America" 2016-17 & "Best in State" 2017-20 • WNY Section PGA Teacher of the Year 2019 :edel: :true_linkswear:

Check Out: New Topics | TST Blog | Golf Terms | Instructional Content | Analyzr | LSW | Instructional Droplets

Awards, Achievements, and Accolades

  • Moderator

My prediction is he’s going to trash twitter. I don’t use it much, but Musk is going to do irreparable harm. 

  • Thumbs Up 1

Scott

Titleist, Edel, Scotty Cameron Putter, Snell - AimPoint - Evolvr - MirrorVision

My Swing Thread

boogielicious - Adjective describing the perfect surf wave

Awards, Achievements, and Accolades

  • Administrator
6 minutes ago, boogielicious said:

My prediction is he’s going to trash twitter. I don’t use it much, but Musk is going to do irreparable harm. 

It's not like Twitter isn't without problems now.

And I'm not saying you said that, just… I like Twitter quite a bit, but there are and have been major issues with it.

Erik J. Barzeski —  I knock a ball. It goes in a gopher hole. 🏌🏼‍♂️
Director of Instruction Golf Evolution • Owner, The Sand Trap .com • AuthorLowest Score Wins
Golf Digest "Best Young Teachers in America" 2016-17 & "Best in State" 2017-20 • WNY Section PGA Teacher of the Year 2019 :edel: :true_linkswear:

Check Out: New Topics | TST Blog | Golf Terms | Instructional Content | Analyzr | LSW | Instructional Droplets

Awards, Achievements, and Accolades

(edited)

Yea I love Twitter. I think it's an invaluable resource despite its issues. I hope he doesn't wreck it. I'm quite happy with my feed these days, so as long as no culture wars crap creeps in there I'm usually very happy with what Twitter throws my way. I guess all we can do is see what happens now. I'm definitely not throwing Elon eight bucks a month though 😄

Edited by JetFan1983

Constantine

Awards, Achievements, and Accolades

Twitter was never a profitable business.  He may damage it, but the only reason to pay 44 billion is for making a profit.  He has fired half the staff and wants to change the business model from advertising revenue to subscription revenue.  Whether it will work is debatable but from a business perspective he is better than the previous owners who only spent investor money

What's in the bag

  • Taylor Made r5 dual Draw 9.5* (stiff)
  • Cobra Baffler 4H (stiff)
  • Taylor Made RAC OS 6-9,P,S (regular)
  • Golden Bear LD5.0 60* (regular)
  • Aidia Z-009 Putter
  • Inesis Soft 500 golf ball
Awards, Achievements, and Accolades

(edited)

Elon claimed having to cut jobs as Twitter was losing 4 million a day...

 

What he forgot to mention was that while Twitter hadn't been profitable, and lost about 200m in 2021 (so about half a million per day - in 2020 net loss was still around 1.1b), his purchase was a leveraged buyout.

Basically while him and the investors did agree of a price of about 46 billion in total, around 12 to 13 billion of that debt was a loan that was put onto the balance sheet of Twitter, with an interest rate of about 1 billion per year (excluding principal payment from some sources I've heard). It's this loan that Twitter stands collateral to that increases the loss to about 1500 to 2200 million per year, making it between 4 to 6 million per day like he mentioned..

Without that loan, the loss would have been much less and layoffs could possibly have been avoided (at least at such a scale).

 

I have the feeling many users will leave when they have to pay (I have never used it extensively, so I would not be willing to pay), and once Twitter will be facing high fines in many countries as they won't be able to uphold legal requirements to moderate "fake news" away (he fired that whole team according to some articles I have read). With the fact that advertisers are now dropping off, causing a massive drop of revenue, I am afraid he will sink that ship. 

I hope I am wrong, but time will tell..

Edited by cdh79

cheers Chris

Awards, Achievements, and Accolades

3 hours ago, cdh79 said:

Elon claimed having to cut jobs as Twitter was losing 4 million a day...

The talking heads on the radio made it sound like nearly all of the folks who were let go had been given as much as a year's notice. Most were let go not only to balance the books but many of them were supporting legacy software that Twitter's no longer using. Seems like many of them either could have known or possibly should have known that their job was going to be eliminated. 

Having said that, it always sucks having your job eliminated. Even if you do know its coming. 

I guess the one silver lining is that at this moment in the US we still have tons of job openings. It's one of the rare times that I can ever remember where we have more jobs available than we have people to fill them. I also am sympathetic to the fact that the job which is available may or may not be the job you want, or are qualified for, or is available where you live, etc... 

3 hours ago, cdh79 said:

I have the feeling many users will leave when they have to pay

I am of two minds on this. Part of me thinks that this is the way everything is going now a days. Charging monthly for everything seems to be the way of the future. I mean BMW is now charging you a monthly fee to use your heated seats! Everything from streaming services to car washes to groceries to utilities to the software on your Bushnell Launch Pro can be bought on a subscription basis. It's becoming the norm. So, maybe people will just be like, "Fine, what ever". Or maybe people will be like, "Enough is enough!" ... I don't know.

I do know that when Netflix (I know is a different service) changed it's pricing structure and laid off a bunch of its employees, there were tons of people who said "This is the end of Netflix." Yet, that was more than 10 years ago and it seems to be still doing okay. 

My bag is an ever-changing combination of clubs. 

A mix I am forever tinkering with. 

Awards, Achievements, and Accolades

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


×
×
  • Create New...

Important Information

Welcome to TST! Signing up is free, and you'll see fewer ads and can talk with fellow golf enthusiasts! By using TST, you agree to our Terms of Use, our Privacy Policy, and our Guidelines.

The popup will be closed in 10 seconds...