It was always dangerous to talk completely about Musk. He is said to be smart at the level of genius, but he has done some really stupid things (strange tweets almost blocking him for defamation and causing him problems with the Hellenic Capital Market Commission). His baby, the electric car giant Tesla, was sadly mismanaged, plagued by production problems and almost declared bankrupt. He miraculously survived and came back stronger, making him the richest man in the world. Most recently, it famously submitted a “better and final” offer for the financially volatile but ubiquitous Twitter social media company. Price: $ 44 billion or $ 54.20 per share (which included a reference to the container; “4:20” is the “time to give” to the weed smoking culture). It was a big premium for its share price then and even heavier now after the market sells out. Twitter’s board finally realized that Crazy Elon offered a one-time payment day for its besieged investors and got the deal. Musk was on the verge of buying what he called the World Public Square. He would be the king of all media, taking Twitter privately and fixing his multiple business flaws (despite his influence, he has no cash flow or profits). Until suddenly it was not. Somewhere in the line, it occurred to him that he was paying too much for a flea dog. He put the agreement on hold indefinitely. The hard-to-believe reason he’s threatening to walk: There are too many fake Twitter accounts that can not monetize him or anyone else. He also said that Twitter was hiding this problem with the bot, which is tantamount to fraud. He wants to take a deeper look at the books. Elon Musk said he was concerned about the large number of fake Twitter accounts. JOSH EDELSON / AFP via Getty Images If he was really worried about the bots, he would not have given up due diligence before signing the deal bureaucracy. What happens next? The business community has always been skeptical of Musk’s intentions, as much of Wall Street has been skeptical. That is why the share was never traded close to its offer price. For what it’s worth it, here’s the view of two bankers, one who has worked with Tesla’s board and another at a company involved in Twitter’s financing machinations.
Only on its terms
They say almost the same thing. Musk tells people he still wants Twitter. He believes he can make it work as a private company, clean up the bot problem and sell it at a profit sometime within the next five years. But Musk wants the company (like everyone else) on his terms, which are always in flux. He does not read balance sheets, but goes with his bowels and has no problem breaking the conventional banking rules (i.e. your reason is your bond) to get his reward. His instinct told him to give up due diligence. Now he tells him that even though he signed a deal leaving him on the hook for $ 1 billion in demolition fees and maybe more compensation, he can put Twitter on the table and agree to his terms, also known as a much lower purchase price. He may be right. Twitter initially said it would impose the initial terms of the deal, maybe even go to court, but now seems to be playing ball with Musk. He recently said he would release more data on the bot issue – a move that means the talks are resuming. Bankers tell me that Twitter’s board knows that finding another fiancé will be difficult even with about $ 40 per share now being traded. The board can not just accept anything, nor can it tell Musk to just hit the sand. Elon Musk could lose $ 1 billion if his Twitter deal fails. Patrick Pleul / Pool Photo via AP, Archive So the thought between my two kids is that Twitter agrees on a lower price, probably significantly lower, and Crazy Elon gets his public square, albeit much cheaper. That means the deal is done, right? This is how it looks. But no one really knows Crazy Elon.
Gensler goes crazy
SEC left-wing leader Gary Gensler finally announced his intentions last week to review the stock market. Forget the great deal small investors are now getting: zero-commission trading and mobile apps that make stock trading seamless and cheap for beginners. Gary Commission Gary Gensler is pursuing private equity investors. Samuel Corum – CNP / MEGA Gensler told attendees at an investor conference that bad things happen where no one can see them. too many trades do not go to public stock exchanges. They lead to private trading venues known as dark pools. Investors believe they are trading for free at Robinhood, but they could be deceived without knowing it. Gensler did not provide evidence that markets are hurting small investors through its current structure. It is his premonition. Reversing markets is quite a dangerous thing. Especially when you are just trying to fill your credentials in the class war, as most observers suspect. The good news (and the bad news for Gensler): His proposed changes will likely take years to implement as Congress – which is likely to be in the hands of the GOP after November – discusses their benefits. By that time, everything will be over. His current boss, the sleepy Joe Biden, is likely to be out of office, replacing a Republican president or a sober Democrat who will resist “fixing” something that does not need to be fixed.
