Presumably he will have to pay the $1 billion walkaway penalty. But the complete collapse of his trustability among potential business partners will cost him a lot more.
The $1b isn't a walkaway fee, it's a penalty if a 3rd party kills the deal
They have a binding contract, there is no walking away without spending years in court
In that contract, Musk even agrees he cannot contest Twitter forcing him to complete the purchase
> it is hereby acknowledged and agreed that the Company shall be entitled to specific performance or other equitable remedy to enforce Parent and Acquisition Sub’s obligations to cause the Equity Investor to fund the Equity Financing, or to enforce the Equity Investor’s obligation to fund the Equity Financing directly, and to consummate the Closing
"(If) the Parent (Elon Musk) fails to consummate the Merger as required pursuant to the Merger Agreement, including because the equity, debt and/or margin loan financing is not funded, Parent will be required to pay Twitter a termination fee of $1.0 billion"
Yes, basically no matter what, if for some reason the deal cannot close (eg the government blocks it) he has to pay $1b. He still must try to close the deal.
Musk's behavior increasingly suggests he has psychiatric problems. Even if there is someone around him with the guts to suggest he seek help, he probably wouldn't listen.
It would be callous of me explicitly to spell it out, but, going forward, his reputation may be the least of his worries.
Fair enough: psychiatry is not a field in which I am an expert. To the extent that I have a diagnosis, it's nothing more specific than 'this behavior is starting to remind me of Elvis or Michael Jackson'
As another commenter said, its not a get-out-of-jail-for-1b option. Thats a contingent on factors outside of Musks/Twitters control. Once you walk away and get into the realm of negligence it opens it up to a lot more in terms of damages.
Maybe (probably) I'm missing stuff, but it looks to me like Musk announced the deal, but either never had any intention of completing it, or almost immediately lost interest in completing it.
Not only was it blatantly obvious from the start, but it wasn’t the first time Elon liquidated Tesla shares while misdirecting. Both his fans and the media continue to fall for his distractions to this day.
He has been trying to produce excuses to justify this for weeks so he wouldn't have to pay the cancellation price that he agreed to. It should have been clear to everyone by now he had no attention of actually doing anything beyond getting attention.
So is this securities fraud? Also, I’m guessing if he sold any stock he’ll go down for insider trading since he knew he was going to bail right? So either he’s in for a huge loss as the sale falls through or if he sold he’s in for a huge fine right?
I mean outside of the 1b penalty of cause.
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[ 3.1 ms ] story [ 83.1 ms ] threadThey have a binding contract, there is no walking away without spending years in court
In that contract, Musk even agrees he cannot contest Twitter forcing him to complete the purchase
> it is hereby acknowledged and agreed that the Company shall be entitled to specific performance or other equitable remedy to enforce Parent and Acquisition Sub’s obligations to cause the Equity Investor to fund the Equity Financing, or to enforce the Equity Investor’s obligation to fund the Equity Financing directly, and to consummate the Closing
https://www.sec.gov/Archives/edgar/data/1418091/000119312522...
I mean, notwithstanding the fairly arcane language - 'ouch'.
It would be callous of me explicitly to spell it out, but, going forward, his reputation may be the least of his worries.
Even psychologists say you shouldn't do that. Psychology is the contemporary inquisitor, let it go.
https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
So... what exactly was that all about?
https://www.wsj.com/articles/twitter-voters-back-idea-of-elo...
https://www.autonews.com/executives/elon-musks-tweet-about-t...