Elon & Twitter Part III— The Gift that Keeps on Giving

  1. Is Elon really serious? Even the price must be a joke, given the 420 reference.
  2. Is he going to be able to line up the financing? He would have to sell a lot of TSLA stock to finance it, and who else would go in with him on this?
  3. Can’t the TWTR board find a more “normal” acquirer, surely as an Internet treasure, a bigger company could swoop in to buy TWTR and do it right.
  4. Aren’t current shareholders going to sue the board, Elon, and their dogs, to stop this deal since it “obviously” undervalues TWTR at 54.20?
  1. Elon was serious. And given my read on his personality and his previous actions, the 420 suffix to the price was both an FU to the world and that he would do it anyway. It’s just a price — Wall Street has to get over that. You have to understand there exists a lot of animus towards him from traditional finance folks. Why? Because he is unpredictable and it makes it hard for them to understand how to predict outcomes and make money.
  2. He did line up the financing, with people like Larry Ellison and Sequoia coming in. These are good names, and it would be a mistake to think he didn’t think through these avenues before announcing the bid. And yes, he did sell billions of dollars of TSLA stock, personally.
  3. Nobody showed up. Not a single one. Twitter is not a good business, and they couldn’t even find someone to match Elon’s price let alone beat it.
  4. They did.

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