Reply to Elon Musk buys $3 billion stake (9.2%) in Twitter and is now the platform's largest shareholder

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Reply to "Elon Musk buys $3 billion stake (9.2%) in Twitter and is now the platform's largest shareholder"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Twitter can really put the screws to Musk, if they try to force him to buy at the price he promised. If markets continue to decline, Twitter could force him to liquidate his collateral to finance and complete the transaction. Banks would issue margin calls on his other pledged shares if prices continue marching down. Some members of the bank syndicate in the Twitter deal could pull out and Musk would forced to arrange other financial partners or liquidate more TSLA shares to complete the Twitter transaction.

He has really backed himself into a corner, especially if Twitter goes to court to attempt to force him to complete the transaction.

A $1B break up fee will be cheap compared to the alternative.[/quote]

It probably ends up being a significantly higher cost to Musk if he backs out for something not covered by the break fee provision. [/quote]

There is a liquidated damages clause - he's on the hook for 1B because that's what the twitter board agreed to [/quote]

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