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  • At current 6% discount from previously reported $54.20, market seems to believe more than before. But details remain pending - breakup fees, shop-around option, other terms, etc.
  • A handful of Tesla engineers (meaning under 6 individuals) could/will solve the Twitter spam bot problem in under 30 days. While the words "transparency" and "free speech" will be most talked about post sale, clarity and focus on mission will be implemented the moment there's new mgmt. Oh and addressing the less talked about massive redundancy issue.

    https://www.reuters.com/technology/exclusive-twitter-set-accept-musks-best-final-offer-sources-2022-04-25/
  • edited April 25
    The internet's biggest troll suddenly owning the internet's biggest troll platform with a view that pretty much any speech is acceptable free speech and 'moderation' of any sort is bad ... what could *possibly* go wrong?

    It's no wonder the far right snowflakes are dancing in the streets across America (and in Moscow) at the prospects of this deal getting done. Despite all their breathles bleating about how Twitter was bad [1] and so they're moving to Gab, Gettr, Parler, Truth Social, etc to protest .... they've come to realize that absent an 'enemy' (eg, 'the libs') to attack via the same platform they're on, being in an online echo chamber just isn't fun. So if a deal goes through, and certain practices/policies are changed, the worry about Twitter becoming an even more horrid cesspool of horrors akin to 8chan/4chan isn't far off.

    I'm on Twitter and am taking a wait-and-see approach if a deal gets done. I have no qualms leaving it should I decide to -- I don't *need* it to be a functioning member of society or to stay in touch with friends.

    [1] These sites, despite launching as free-speech zones as a Twitter alternative, have engaged in similar 'censorship' and moderation like Twitter, but their users don't seem to care. Sorry, you can't have it both ways .... and besides, actions without accountability isn't censorship, it's adolescence.
  • From Matt Levine's newsletter:
    Twitter’s biggest shareholders, according to Bloomberg’s holders page, are the Vanguard Group, Elon Musk, Morgan Stanley, BlackRock Inc., State Street Corp., Aristotle Capital Management, Fidelity, Jack Dorsey, ClearBridge LLC and Geode Capital Management.

    Tesla Inc.’s biggest shareholders are Elon Musk, Vanguard, BlackRock, Capital Group, State Street Corp., Larry Ellison, Geode and Fidelity. Tesla is a much bigger company than Twitter.

    Vanguard’s Tesla stake is worth about $62.5 billion, versus about $4.5 billion for its Twitter stake. Morgan Stanley’s 8.8% stake in Twitter is worth about $3.6 billion at Musk’s deal price, versus $3.7 billion for its 0.36% stake in Tesla. It seems clear that a majority of Twitter’s stock is owned by shareholders who own more Tesla stock.
  • It’s not my curmudgeonly nature at play; however, I’m starting my second 80-year stint on this plant and the second one will also be completely free of tweets. I can’t help what my PMs are doing, however.
  • I've been reading about these "tweets" for quite a while now, but I have no idea what they are, and couldn't care less.
  • edited April 25
    There are reports of a deal but no SEC/Edgar filing yet.

    Looking at the details of financing from 4/21/22 filing,
    https://www.sec.gov/Archives/edgar/data/1418091/000110465922048128/tm2213229d1_sc13da.htm

    $13 billion, commitment letter from Morgan Stanley
    $12.5 billion, margin loan from Morgan Stanley (of course from Elon Musk)
    $21 billion, personal commitment letter from Elon Musk to cover any amounts beyond the 2 sources above ($25.5 billion)

    I suppose Guinness would have to record it as the biggest transaction on margin loan.
  • Let's see now... $13 billion from Morgan Stanley-
    $12.5 billion loan from Morgan Stanley / Elon Musk-
    $21 billion from Elon Musk-

    Among Twitter’s biggest shareholders: Elon Musk & Morgan Stanley

    That all seems pretty straightforward... no funny stuff there!
  • Don't overlook that Jack Dorsey and Elon Musk are friends. How did all this start soon after Dorsey was forced to resign from Twitter. Musk has said that he will get rid of current Twitter Board, or will drop their compensation to $0. Will Jack Dorsey be back co-running Block/Square (whatever shape) and Twitter?
  • I wonder how the SEC and regulators are viewing this as Musk has gotten into heated battles with the SEC in the past with his Tweets attacking them and for his Tweets revealing too much or misleading information. What will it be like if he owns the platform he got in trouble for?
  • Amazing that no filing on the deal with SEC/Edgar YET (Monday 3:20 PM Central)! Normally, that is the first thing companies do and then let news disseminate from that. So, here may be Musk's Twitter snubbing SEC?
    https://www.sec.gov/edgar/browse/?CIK=1418091&owner=exclude
  • edited April 25
    Here it is,
    https://www.sec.gov/ix?doc=/Archives/edgar/data/0001418091/000119312522117720/d319190d8k.htm

    https://www.sec.gov/Archives/edgar/data/0001418091/000119312522117720/d319190dex991.htm

    Summary to follow - well, really not much new.

    "Transaction Terms and Financing

    The transaction, which has been unanimously approved by the Twitter Board of Directors, is expected to close in 2022, subject to the approval of Twitter stockholders, the receipt of applicable regulatory approvals and the satisfaction of other customary closing conditions.

    Mr. Musk has secured $25.5 billion of fully committed debt and margin loan financing and is providing an approximately $21.0 billion equity commitment. There are no financing conditions to the closing of the transaction.

    For further information regarding all terms and conditions contained in the definitive transaction agreement, please see Twitter’s Current Report on Form 8-K, which will be filed in connection with the transaction."
  • “ There are no financing conditions to the closing of the transaction.” important point.

    I doubt Twitter will remain a not for profit company merely serving as a town square sounding board. @jack will make over a billion from this and Elon team will fix the company. I would not be surprised to see it go public again with MS as the underwriter.

    This is a very big “tech deal”.
  • $21b equity commitment includes shares Musk already owns. He must have lined up other current / prospective large / institutional shareholders to take the company public. Normal closing conditions could include doing due diligence of technology, primarily for infringement of copy rights and patents, and of books and records. If the probability of the deal falling thru is greater than 10%, I would short the stock for a potential loss of 5% (when the deal closes) vs massive upside if the deal does not close. What am I missing?
  • @BaluBalu you are not missing much. The deal may take a while. The earnings may come in lower. Tesla shares may be impacted. Many companies took a pass on TWTR. Odds are in favor of shorting vs. “massive upside”. Don’t own the stock nor plan to purchase any before close.
  • edited April 25
    BenWP said:

    I’m starting my second 80-year stint on this plant and the second one will also be completely free of tweets.

    What “plant” might that be?

    :)
  • All plant-based diet!! @hank.
  • Uh-huh …. :)
  • New SEC/Edgar filing today - breakup fee $1 billion; no-shop provision for Twitter but Twitter has to consider a better/higher offer if it comes; other usual contingencies related to shareholder vote, anti-trust/regulatory clearances, etc.

    After-hours trading shows 9.8% discount from the cash-deal price, so there is decent skepticism on the deal.

    https://www.sec.gov/ix?doc=/Archives/edgar/data/0001418091/000119312522120461/d310843d8k.htm

    https://www.sec.gov/Archives/edgar/data/0001418091/000119312522120474/d310843ddefa14a.htm
  • uber-wealthy hobbies. feces.
  • Tesla shares sink, wipe out over $125 billion in value, as Musk scores Twitter deal

    Following are excerpts from ☞ a current NPR article:
    Taking over Twitter may be good for Elon Musk, but it hasn't been good for Tesla's shares.

    One day after Twitter announced it had accepted Musk's $44 billion takeover bid, Tesla shares sank 12.2%, wiping out more than $125 billion off the electric vehicle maker's market value.

    When Musk announced he had secured the money to finance the transaction, he said he would cover $21 billion himself, with banks helping finance the other half. What remains unclear is how he will come up with that money — whether he will sell some of the Tesla shares he owns, borrow against them, bring in additional investors, or all three.

    If Musk does offload some of those holdings, it could drive Tesla's share price down further. This is something the company warned investors about in its latest annual report, filed in February with the U.S. Securities and Exchange Commission.

    "If Elon Musk were forced to sell shares of our common stock that he has pledged to secure certain personal loan obligations, such shares could cause our stock price to decline," the company wrote.
  • In related news, Dogecoin jumped 30% and technically might/could have paid for the Twitter purchase. Why didn’t anyone see this coming? Oh, someone did: https://www.forbes.com/sites/billybambrough/2022/04/15/dogecoin-a-proxy-for-twitter-stock-doge-price-could-soar-if-elon-musk-buys-twitter-potentially-boosting-bitcoin-ethereum-and-other-cryptocurrencies/

    While Tesla stock may be impacted as I previously mentioned…it’s a short term issue and using the word issue is over exaggerating the situation as the story did. Interesting financing story to follow, nevertheless.
  • I looked at the loan agreement and think it says ( I am not an accountant or lawyer) that is TSLA drops 35% from the price at which loan starts ( I don't think they pony up money until deal closes) Musk has to put up more cash ( not more shares)

    Before market open today, TSLA is down 23% from it's high of 1145 to 876, or about 65% of the gap to the margin call ( again, I don't think the loan has been made yet).

    The margin call would be at $750 if the had borrowed the money at the peak of TSLA.

    Obviously he need this drop in TSLA to bottom out before he gets the cash, which is probably what he is counting on.

    IT is unclear where he will get the cash to pay the interest on the loan, especially if all the senior management and coders at TWTR ( who will become very rich when they cash out all their options) leave and TWTR turns into another right wing cesspool.

    How will that be good for revenues at TWTR?

    IF I were a TSLA stockholder, customer or supplier, I would be seriously worried that the company is in the control of an ideologue, not a real manager.
  • BTW it looks like BPTRX still is loaded with TSLA.

    Yesterday TSLA down 12% BPTRX down 8%

    I have whittled my daughter's position down to 3% of her account. I would sell it all but she has a 400% gain.
  • sma3 said:


    IF I were a TSLA stockholder, customer or supplier, I would be seriously worried that the company is in the control of an ideologue, not a real manager.

    Agreed. He's using TSLA as his personal piggy bank and as a result how many people/funds/pensions are getting slammed right now as TSLA tanks? (Of course, one could argue they shouldn't be holding so much TSLA, but that's why I hate institutional investment commitee/Wall Street groupthink....)
  • edited April 27
    Maybe I'm confused. I thought he was putting up his own personal shares and options of TSLA as collateral. I didn't know he was using TSLA company owned shares or funds. Why wouldn't his shares and options already be accounted for in the stock price? What if he were to use the same shares and collateral to fund a new satellite venture? Wouldn't the effect be the same?

    If TSLA shareholders are concerned about his purchase being a distraction to his CEO duties...we'll that's an entirely different matter and one that I think is way overblown.
  • Sometimes I think that he is way overblown.
  • Just In... Musk and Tesla Board win court case: https://www.barrons.com/articles/-musk-not-liable-solarcity-lawsuit-51651097697

    "If Musk had lost in court, a monetary penalty might have been levied against him or other directors. If the penalties were big enough, Tesla stock might have been sold to pay fines. That could hit shares temporarily." <--Wait... where I have heard that before?

    @Old_Joe LOL yes many of these billionaires are!
  • Maybe I'm confused. I thought he was putting up his own personal shares and options of TSLA as collateral. I didn't know he was using TSLA company owned shares or funds. Why wouldn't his shares and options already be accounted for in the stock price? What if he were to use the same shares and collateral to fund a new satellite venture? Wouldn't the effect be the same?

    If TSLA shareholders are concerned about his purchase being a distraction to his CEO duties...we'll that's an entirely different matter and one that I think is way overblown.

    He owns a ton of TSLA shares, which I think he's using a chunk of as collateral. If he or his creditors have to sell them, it's going to cause a massive drop in the share value to everyone else.
  • edited April 27
    Some analysis from Tuesday’s Wall Street Journal (4/27/22):

    “Now he faces fresh challenges. Mr. Musk has hocked roughly $60 billion of his Tesla Inc. stock—about one third of his stake—as collateral for bank loans, tying his personal fortune to Twitter’s. He must come up with $21 billion more in cash, which could mean selling additional shares in Tesla, just as the company is hitting its stride. Tesla shares have lost about 8% since Mr. Musk first disclosed a Twitter stake, suggesting investors are worried he will be distracted or financially stretched. Twitter will be saddled with hundreds of millions of dollars in annual interest payments, a risk for any company but especially in this case, as Mr. Musk has said he doesn’t care whether it makes money—it has had trouble doing so over the years.”

    I share all the concerns mentioned in this thread. But I wouldn’t want to bet against this guy. He’s usually 3 steps ahead of everybody else. That said, SpaceX and Tesla came darned close to failing before he turned them around thru grit and perseverance. Worth remembering that Musk was co-founder of what is now PayPal where he made his initial millions - a revolutionary concept at the time. I’m thinking he views Twitter as primarily a launching platform for all kinds of innovative / lucrative ventures into finance and media which we haven’t even begun to comprehend yet. Why does the already wealthiest person on the planet need even more money? Imagine the cost of establishing a permanent human colony on Mars - his ultimate goal.

    (Comments posted using Starlink internet service)
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