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BumRushDaShow

(127,251 posts)
Fri May 13, 2022, 06:36 AM May 2022

Elon Musk says his takeover of Twitter is 'on hold.'

Source: New York Times



Elon Musk said his $44 billion bid to purchase Twitter was “temporarily on hold” until he could get more details to confirm that spam and fake accounts represent less than 5 percent of the social network’s total users.

Mr. Musk, the chief executive of Tesla, made the announcement in a pre-dawn tweet on Friday. He linked to a Reuters article published on May 2 about a regulatory filing by Twitter that included an estimate of the number of spam and fake accounts. Shares in Twitter fell about 20 percent in premarket trading on Friday.




Mr. Musk has said that ridding the platform of fake accounts, bots and spam is one of his top priorities after taking over. Known for his freewheeling and sometimes impulsive business style, Mr. Musk’s comments raise questions about the future of a deal that would put one of the most influential social media platforms under the control of world’s wealthiest person.

The deal for Twitter includes a $1 billion termination fee that Mr. Musk would have to pay if he backs out of the deal, though it was unclear how such a clause would apply if Mr. Musk determined Twitter’s user figures were incorrect. Mr. Musk has pledged to use a considerable amount of his personal fortune to finance the deal for Twitter, a plan that has been impacted by a recent plunge in stock prices, including Tesla’s. Tesla’s stock has fallen nearly 30 percent in the past month. Mr. Musk is both selling Tesla shares and putting them up as collateral for personal loans to raise cash.

This is a breaking news story. Check back for updates.


Read more: https://www.nytimes.com/2022/05/13/business/elon-musk-says-his-takeover-of-twitter-is-on-hold.html?smid=tw-nytimes&smtyp=cur



OP ARTICLE TWEET TEXT

Elon Musk
@elonmusk
Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users
A 3D-printed Twitter logo on non-3D printed Twitter logos is seen in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration
reuters.com
Twitter estimates spam, fake accounts comprise less than 5% of users -filing
Twitter Incestimated in a filing on Monday that false or spam accounts represented fewer than 5% of its monetizable daily active users during the first quarter.
5:44 AM · May 13, 2022


Seems like these "utterances" have been moves to manipulate the stock price.

Original article -

Elon Musk said his $44 billion bid to purchase Twitter was "on hold" until he could get more details to confirm that spam and fake accounts represent less than 5 percent of the social network's total users.

Mr. Musk, the chief executive of Tesla, made the announcement in a pre-dawn tweet on Friday. He linked to a Reuters article published on May 2 about a regulatory filing by Twitter that included an estimate of the number of spam and fake accounts.




Mr. Musk has said that ridding the platform of fake accounts, bots and spam is one of his top priorities after taking over.

Known for his freewheeling and sometimes impulsive business style, Mr. Musk's comments raise questions about the future of a deal that would put one of the most influential social media platforms under the control of world's wealthiest person.

This is a breaking news story. Check back for updates.
57 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Elon Musk says his takeover of Twitter is 'on hold.' (Original Post) BumRushDaShow May 2022 OP
I'm shocked! Anyone else think he'll use this as an out? nt Phoenix61 May 2022 #1
Of course he will, and he is trying to avoid the one billion dollar breakup fee he would owe. JohnSJ May 2022 #2
I think they already are suing him but it's for something else. gldstwmn May 2022 #50
Yes. Some are speculating that he is trying to drive the price down, and renegotiate a lower price JohnSJ May 2022 #51
I think not just as an out of the Twitter deal - I think to purposely ruin Twitter Pachamama May 2022 #52
I had not considered that possibility but it certainly Phoenix61 May 2022 #56
You mean the First Amendment isn't really writing its own tweets? mahatmakanejeeves May 2022 #3
Fox News "only 5% could be fake. It's not like it's 65%" underpants May 2022 #4
This coming from an organization that lies about most everything SouthernDem4ever May 2022 #55
His actions disrupted capital markets bucolic_frolic May 2022 #5
"Musk knows as well as anyone Twitter is also a great tool for market manipulation and securities sop May 2022 #30
Oh seriously, fuck this guy and everybody who cares what he says. At some point his $ doesn't matter FreepFryer May 2022 #6
He and Trump are just alike, neither knows when to STFU 2Gingersnaps May 2022 #42
He was hoping for more fake accounts? C_U_L8R May 2022 #7
Hmmm... BumRushDaShow May 2022 #9
"Master of Coin" 2Gingersnaps May 2022 #27
Thanks, BumRushDaShow. That was a joy to read. crickets May 2022 #39
Thanks for the alternate link BumRushDaShow May 2022 #41
Oh look! Oligarch haggling for a better price! bucolic_frolic May 2022 #8
...and he wants to let TFG back on? Biggest spammer of all! NewHendoLib May 2022 #10
Musk's ego and hubris are crashing Tesla dlk May 2022 #11
Ha, ha, ha!!! PatSeg May 2022 #12
Is he a human-alien hybrid? milestogo May 2022 #13
I think he's using Delphinus May 2022 #14
"a way to get the stocks to fall to where his Tesla holdings will be enough to purchase it." BumRushDaShow May 2022 #17
Thank you Delphinus May 2022 #18
You're welcome BumRushDaShow May 2022 #19
The people who own crypto don't know anything about crypto either jmowreader May 2022 #47
Spam and fake accounts less than 5% of Twitter ?! DemocraticPatriot May 2022 #15
Does he really want to get rid of fake accounts or just certain fake accounts? tanyev May 2022 #16
This deal could be undone... Achilles Skye May 2022 #20
This dude is weird. Just saying. Joinfortmill May 2022 #21
Genius is always a bit weird, ask Einstein. Alexander Of Assyria May 2022 #25
einstein was a caring human being. mopinko May 2022 #29
Einstein left plenty of evidence of genius. dchill May 2022 #35
Just yesterday, that news that the Milky Way's black hole is precisely the size he predicted! JudyM May 2022 #46
You throw that word around way too easy friend. nt BootinUp May 2022 #48
I hope he's backing out of the deal Progressive dog May 2022 #22
Elon Musk tweeted that Twitter deal is temporarily on hold LetMyPeopleVote May 2022 #23
His Tesla stock took a hit on the bitcoin market collapse BumRushDaShow May 2022 #26
Playing the media world like a drum...he sure know how, no one can argue that. Alexander Of Assyria May 2022 #24
So did Trump, that guy is a repulsive meglomaniac too, 2Gingersnaps May 2022 #28
And everyone thought he was so rich, he is cash poor, Historic NY May 2022 #31
PPS down 4.50 so he can buy millions of shares and POOF tomorrow the deal in back on Bengus81 May 2022 #32
Supporting calculation usonian May 2022 #33
That creep looks like the Joker in original Batman series... Justice matters. May 2022 #34
Just checked the clip and that is who I was thinking BumRushDaShow May 2022 #36
Elon Musk Shows Some Buyer's Remorse With Twitter LetMyPeopleVote May 2022 #37
Some of the "trial balloons" might also be a fundraising scheme BumRushDaShow May 2022 #38
Did we learn nothing from the orange blob? crickets May 2022 #40
Trumpers scammed once again Catherine Vincent May 2022 #43
I would have kicked the tires before I got ready to spend 44 billion dollars Marthe48 May 2022 #44
Cryto Ponzi artist godfree2 May 2022 #45
This should be its own OP. nt Carlitos Brigante May 2022 #49
Kick BlueWavePsych May 2022 #53
... BumRushDaShow May 2022 #54
Never mind the political rhetoric, he's in business for money. Norton Nork May 2022 #57

JohnSJ

(91,937 posts)
2. Of course he will, and he is trying to avoid the one billion dollar breakup fee he would owe.
Fri May 13, 2022, 06:42 AM
May 2022

I hope the shareholders sue the hell out him, along with the breakup fee.




gldstwmn

(4,575 posts)
50. I think they already are suing him but it's for something else.
Fri May 13, 2022, 11:31 PM
May 2022

It almost looks like he is manipulating the stock with this BS.

JohnSJ

(91,937 posts)
51. Yes. Some are speculating that he is trying to drive the price down, and renegotiate a lower price
Fri May 13, 2022, 11:36 PM
May 2022

At the minimum it looks like stock manipulation to me

Pachamama

(16,873 posts)
52. I think not just as an out of the Twitter deal - I think to purposely ruin Twitter
Sat May 14, 2022, 08:47 AM
May 2022

I honestly think this was part of his plan all along. I think it’s his revenge on Twitter and a big giant fuck you. He will pay any fines and laugh the whole way on to his next thing he does.

I never took his intention to buy Twitter seriously.

I am seriously hoping for some karmic retribution amd consequences to hit Musk. He epitomizes the arrogance and hubris of so many of the über wealthy who think they have a license to do whatever they wish.

Phoenix61

(16,949 posts)
56. I had not considered that possibility but it certainly
Sat May 14, 2022, 10:17 AM
May 2022

mask sense. I’m reminded of a quote from The Great Gatsby:
“They were careless people, Tom and Daisy – they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together, and let other people clean up the mess they had made.”

underpants

(182,270 posts)
4. Fox News "only 5% could be fake. It's not like it's 65%"
Fri May 13, 2022, 06:53 AM
May 2022

I flip over to Fox in the morning from time to time. The three stooges on the couch explaining away lies was something to behold.

bucolic_frolic

(42,651 posts)
5. His actions disrupted capital markets
Fri May 13, 2022, 07:08 AM
May 2022

Hopefully class action lawyers will go after it. Shorts got burned, options volatility exploded, all for doofus ego. He didn't even abide by the SEC reporting rules which is to notify when a 5% stake is taken.

sop

(9,943 posts)
30. "Musk knows as well as anyone Twitter is also a great tool for market manipulation and securities
Fri May 13, 2022, 09:36 AM
May 2022

fraud." - Josh Marshall

That's likely the reason he wants to buy Twitter.

FreepFryer

(7,077 posts)
6. Oh seriously, fuck this guy and everybody who cares what he says. At some point his $ doesn't matter
Fri May 13, 2022, 07:10 AM
May 2022

What a shitty manipulative snake oil shilling moral shitsplat.

That our societies can be manipulated and exploited by the likes of Musk and Trump is one of our shittiest failings as a planet.

2Gingersnaps

(1,000 posts)
42. He and Trump are just alike, neither knows when to STFU
Fri May 13, 2022, 02:49 PM
May 2022

One will run his mouth into a prison cell, and hopefully the other will run his mouth into a Chinese factory floor-since he has so much respect for factory workers. /S

C_U_L8R

(44,889 posts)
7. He was hoping for more fake accounts?
Fri May 13, 2022, 07:16 AM
May 2022

Seems more likely the crypto crash has left him a bit short on cash.

Time for someone like Microsoft to swoop in and grab a bargain.
Boy, does Twitter's board of directors look like fools.
Now they have to sell before shareholder lawsuits take them out.

BumRushDaShow

(127,251 posts)
9. Hmmm...
Fri May 13, 2022, 07:33 AM
May 2022


Bitcoin’s 50% crash erases all of Elon Musk’s gains on Tesla balance sheet

By Shawn Tully

May 11, 2022 8:00 PM EDT


In early 2021, Elon Musk bestowed the landmark endorsement that, more than any other high-profile purchase, sent Bitcoin on a moonshot and clinched its status as a mainstream investment. Musk famously purchased $1.5 billion in the king of cryptocurrencies using spare cash on the EV maker’s balance sheet, a highly unorthodox move since most companies abhor putting their war chests at risk. In public statements, Musk and CFO Zach Kirkhorn expressed great pride in pioneering a new practice of wagering to make big money on dollars virtually every other enterprise just wants to keep safe. Kirkhorn declared on last year’s Q1 conference call that the purpose was to “get some return” on cash “not immediately being used for operations.” In a SEC filing weeks earlier, Kirkhorn went so far as adding a second title to his rank as CFO: “Master of Coin.”

But so far, the grand experiment’s proved a bust. On the morning of May 11, Bitcoin dropped below $29,400, erasing all of Musk’s once-sumptuous gains, and though it rebounded later in the day, it’s now hovering near the break-even point.

(snip)

https://fortune.com/2022/05/11/bitcoin-crash-elon-musk-holdings-tesla-balance-sheet/


2Gingersnaps

(1,000 posts)
27. "Master of Coin"
Fri May 13, 2022, 09:27 AM
May 2022

Do these grown ass adults think they are starring in Game of Thrones? Seems the type of emotional maturity one would expect from this bunch.

BumRushDaShow

(127,251 posts)
41. Thanks for the alternate link
Fri May 13, 2022, 01:04 PM
May 2022

I could only get partially through it before it started blocking the rest although at least that partial excerpt basically summed it up.

dlk

(11,425 posts)
11. Musk's ego and hubris are crashing Tesla
Fri May 13, 2022, 07:58 AM
May 2022

He may be brilliant in some areas but his Twitter takeover efforts are a clear blind spot.

Delphinus

(11,808 posts)
14. I think he's using
Fri May 13, 2022, 08:16 AM
May 2022

this as a way to get the stocks to fall to where his Tesla holdings will be enough to purchase it.

What an ass this person is.

BumRushDaShow

(127,251 posts)
17. "a way to get the stocks to fall to where his Tesla holdings will be enough to purchase it."
Fri May 13, 2022, 08:26 AM
May 2022

But the bitcoin market says, not so fast!

Elon Musk's Tesla Loses Money in Bitcoin Rout

The manufacturer of high-end electric vehicles had invested in bitcoin in February 2021.

Luc Olinga
May 10, 2022 3:05 PM EDT

The few established companies that have added bitcoin to their balance sheets are now beginning to see this investment go awry. Tesla invested $1.5 billion in virtual currency on Feb. 8, 2021, and said it was beginning to accept it as payment for buying Tesla cars.

The move came days after Chief Executive Elon Musk temporarily changed his Twitter mini-description to simply #bitcoin. The announcement was a mark of confidence in cryptocurrency. Bitcoin prices then jumped past $42,000.

Tesla claimed that this investment in bitcoin was aimed at diversifying its sources of liquidity and gaining flexibility in order to be able to largely remunerate its shareholders. But a few months later, in May 2021, Tesla indicated that it no longer accepted bitcoin as a means of payment. It cited as a reason that it wanted to preserve the environment since minting of bitcoins consumes enormous amounts of electricity.

(snip)

Tesla's Investment Is in the Red

For several months, Tesla's bitcoin gamble paid off, especially when the price hit an all-time high of $69,044.77 on Nov. 10. But since then prices have plummeted and are currently hovering around $31,000. The bitcoin-price slump puts Tesla's initial investment in the red. Indeed, the Austin company seems to have lost money. According to Bitcoin Treasuries, Tesla's 43,200 bitcoins purchased for $1.5 billion are currently valued at $1.35 billion, down $150 million, or about 15%.

(snip)

https://www.thestreet.com/investing/cryptocurrency/tesla-loses-money-on-bitcoin-bet

BumRushDaShow

(127,251 posts)
19. You're welcome
Fri May 13, 2022, 08:38 AM
May 2022

and I know DU has a bunch of crypto-currency-knowledgeable (and I am not one of them but do remember back when it was first being introduced and the concept behind it, etc).

tanyev

(42,354 posts)
16. Does he really want to get rid of fake accounts or just certain fake accounts?
Fri May 13, 2022, 08:19 AM
May 2022

Because if you got rid of all the fake accounts that followed TFG, for example, his number of followers would go way down. And then he would throw a non-stop persecution tantrum.

LetMyPeopleVote

(143,998 posts)
23. Elon Musk tweeted that Twitter deal is temporarily on hold
Fri May 13, 2022, 09:05 AM
May 2022

It is clear that the margin loan structure would not work. This structure exposed both Twitter and Tesla. The new financing is not cheap https://www.bloomberg.com/news/articles/2022-05-12/musk-seeks-to-scrap-tesla-margin-loan-with-new-twitter-funding

The preferred equity may have a 20-year maturity and include a feature allowing interest to be paid in kind at a rate of 14%, the people said. That interest rate would be increased by 75 basis points in the seventh, eight and ninth year, they added. The financing may alternatively be structured with a 10% interest rate and warrants, one of the people said.


See also https://www.zerohedge.com/political/musk-looking-scrap-tesla-margin-loan-secure-new-twitter-funding

According to the report, the preferred equity may have a 20 year maturity, as well as a feature which would allow interest to be paid in kind at 14%. The rate would be raised by 75 basis points in the 7th, 8th and 9th year. Alternatively, the financing may be structured with a 10% interest rate plus warrants.

Musk has announced that this deal is on hold.



https://www.washingtonpost.com/technology/2022/05/13/musk-twitter-bid/

Tesla has lost $400 billion in market value since Musk’s interest in Twitter became public in early April, driving a wedge in his acquisition plans at a time when he has committed $21 billion of his wealth to finance the purchase. Musk had planned to buy Twitter with a combination of loans and equity commitments, leveraging into the deal much of his stake in the world’s most valuable automaker — from which he derives most of his wealth.


Musk’s net worth, which makes him the world’s richest man, has fallen by around $50 billion in recent weeks, according to Forbes’ real-time wealth index. And Tesla stock has shed nearly 30 percent of its value in just the past month.,,,,

Musk has leveraged much of his Tesla stock as collateral for his loans, making the recent economic downturn a particular issue for his bid. Tesla has warned of the risks it faces because of the amount of Tesla stock Musk has put down as collateral. Tesla stocks were trading at under $730 on Thursday, well below the more than $1,100 mark from early April. A drop by several hundred more dollars could trigger requirements that would force Musk to sell some shares, analysts said.

At one point last year, he had put down more than half of his shares as collateral, according to financial filings. Because the Twitter bid would only add to that percentage, Musk has faced pressure to reduce his equity commitment, according to people with knowledge of the matter who spoke on the condition of anonymity to discuss sensitive matters.

It will be interesting to see of Musk can pull off this deal. It is clear that this deal will not be financed based on margin loans using Tesla stock

BumRushDaShow

(127,251 posts)
26. His Tesla stock took a hit on the bitcoin market collapse
Fri May 13, 2022, 09:16 AM
May 2022



Josh Marshall
@joshtpm
·
May 13, 2022
Hadn’t Tesla parked a few billion of reserve cash in crypto?
Dr. MadScientistPhD
@MadScientistPhD
cnbc.com
Tesla says it held nearly $2 billion worth of bitcoin at the end of 2021
By Dec. 31, the fair market value of its bitcoin holdings came in at $1.99 billion.
7:54 AM · May 13, 2022


I suppose some of this is going to hinge on where that market is headed.

https://www.barrons.com/articles/bitcoin-ether-terra-luna-tether-crypto-prices-today-51652342984?tesla=y

2Gingersnaps

(1,000 posts)
28. So did Trump, that guy is a repulsive meglomaniac too,
Fri May 13, 2022, 09:32 AM
May 2022

special emphasis on "maniac." Tripping and falling on those egos is gonna hurt bigly.

Historic NY

(37,449 posts)
31. And everyone thought he was so rich, he is cash poor,
Fri May 13, 2022, 09:43 AM
May 2022

now maybe he can fix his self-immolating cars. Speed might kill, burning in a car that catches fire in an accident is more than just a problem. Fire Depts. struggle to put out the fire.

Bengus81

(6,907 posts)
32. PPS down 4.50 so he can buy millions of shares and POOF tomorrow the deal in back on
Fri May 13, 2022, 10:22 AM
May 2022

And...the lemmings send it back up 10.00 per share.

usonian

(9,413 posts)
33. Supporting calculation
Fri May 13, 2022, 10:32 AM
May 2022

that spam/fake accounts do indeed represent less than 5% of users

The "board" found 6.

but gave Musk a 15% discount.

Justice matters.

(6,873 posts)
34. That creep looks like the Joker in original Batman series...
Fri May 13, 2022, 11:20 AM
May 2022


And he admires the orange "everything-he-touches-dies" Pingouin.

BumRushDaShow

(127,251 posts)
36. Just checked the clip and that is who I was thinking
Fri May 13, 2022, 11:58 AM
May 2022

Burgess Meredeth's "Penguin" (not Cesar Romero's "Joker" )





LetMyPeopleVote

(143,998 posts)
37. Elon Musk Shows Some Buyer's Remorse With Twitter
Fri May 13, 2022, 12:30 PM
May 2022

Musk will have to pay Twitter a breakup fee of $1 billion if calls off the deal. This was always a sketchy deal with suspect financing. The use of a margin loan never made sense, Musk likes the attention but making this transaction work in the real world may not be n the cards.




https://www.bloomberg.com/opinion/articles/2022-05-13/elon-musk-shows-some-buyer-s-remorse-with-twitter

Elon Musk took to Twitter early Friday to say that his takeover of the company was “temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”....

I suspect Musk’s jitters about buying Twitter are all about the money and has nothing to do with how many bots are zooming around the platform. He just doesn’t want to say that. If the richest guy in the world wanted to be more honest about what’s going on, he might have to acknowledge that his primary credit card — his shares in Tesla Inc. — doesn’t have the buying power it once did.

Musk said last month that he wanted to buy Twitter for $43 billion — when he only had about $3 billion in cash on hand. Most of the fortune of the world’s richest man, which added up to some $259 billion at the time, was tied up in his Tesla shares. Since then, Tesla’s shares have lost about 36% of their value, and Musk’s net worth has fallen to about $215 billion......

After all, Musk’s tweet about how many fake accounts there are on Twitter linked to a Reuters news article that is 11 days old. If this was a possible deal-breaker for him, he could have said so then. But the stock market wasn’t unwinding as rapidly at the time, either.

Musk has been able to use his Twitter bid to secure more attention for all of the things he doesn’t like about it. He tweeted yesterday that although he would prefer “a less divisive candidate” for president in 2024, he thinks that Twitter should end its ban on former President Donald Trump. In that context, “less divisive” appears to be a polite way of saying “someone who hadn’t torched the Constitution and tried staging a coup.” But Musk doesn’t appear to be bothered by those nuances – which, of course, makes him a questionable steward of Twitter’s future.

BumRushDaShow

(127,251 posts)
38. Some of the "trial balloons" might also be a fundraising scheme
Fri May 13, 2022, 12:42 PM
May 2022

and quid pro quo offer to RW billionaires to maybe "bail him out" by buying some Tesla shares in exchange for...

crickets

(25,896 posts)
40. Did we learn nothing from the orange blob?
Fri May 13, 2022, 12:51 PM
May 2022
Known for his freewheeling and sometimes impulsive business style


Gee, the description sounds so familiar. Phrases like this are just the polite code for 'jackass.'

Marthe48

(16,688 posts)
44. I would have kicked the tires before I got ready to spend 44 billion dollars
Fri May 13, 2022, 05:32 PM
May 2022

Did he just wake up one day and say, "I reckon I'll spend $44 billion on something.

God.

 

Norton Nork

(33 posts)
57. Never mind the political rhetoric, he's in business for money.
Sat May 14, 2022, 10:32 AM
May 2022

The company was losing money and he thought a bit of populism would turn it around.
And he certainly made the stock go up. Perhaps now he will take his profit and bug off, leaving a stink behind him.

Full disclosure: I have never been on Twitter and don't plan to start.

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