by Historical_Job_8609
Its is ironic, that not long ago Musk was taking over Twitter to rid it of “spam bots”, and now has the takeover on hold because they might exceed 5%!!
The media is obsessed with Musk. If the guy is so technically advanced to everyone else on earth, was he really unaware that half of his Twitter followers were “spam bots”:
time.com/6171726/elon-musk-fake-followers/
Of course not. Elon’s latest twitter is an aboslute red herring. Debt covenants and the 25% debt to equity holdings value threshold Elon has to comply by, made the Twitter takeover dead in the water at $700.
Go read the SEC filings. Even a 12 year old child could work out Musk massively over-leveraged himself and below $800 he has to start selling Tesla shares or pull the deal – unfortunately he didn’t read the fine print on the latter.
Reports that Musk just bails and pays out $1 billion are false. Not that simple. Twitter can easily show Musk well aware of fake accounts – even a simple search through Musk’s past public comments show as much:
www.cnbc.com/2022/05/13/elon-musk-cant-just-walk-away-from-twitter-deal-by-paying-1-billion.html
Tesla shareholders have bought back in on a Twitter rebound relief rally. That’s misguided. Musk has committed himself to a massively over-leveraged deal that he cannot simply pull out of. Be it Musk selling to pay growing lawsuits including a large Twitter one, or funds selling out on a leveraged equity deal for Twitter that places too much burden on Tesla stock, Tesla shares will be getting sold down again:
www.thestreet.com/technology/elon-musk-takes-a-resounding-blow
Unless they have been asleep, shareholders cannot of missed the new SEC breaches are mounting with Twitter purchases disclosure issues too:
mashable.com/article/elon-musk-sec-twitter-investigation
Musk is not a brilliant maverick. He is increasingly a careless meglomaniac and Tesla shareholders are tied to his alarmingly over leveraged antics and wanton disregard for basic securities and disclosure laws. Many questioned the wisdom of Morgan Stanley in the Twitter takeover, without looking at the covenants and caveats. The only winner from the Twitter deal will be the investment banks offering the deal – why they all lined up in droves.
The lack of due dilligence on Twitter financing may finally topple Musk from his perch as media darling and Tesla shareholders with it.