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Twitter on Track To Reach Deal With Elon Musk as Soon as Today (bloomberg.com) 201

Twitter is in the final stretch of negotiations about a sale to Elon Musk, a person with knowledge of knowledge of the matter said, Bloomberg News reports. From the report: The social media company is working to hammer out terms of a transaction and could reach an agreement as soon as Monday if negotiations go smoothly, according to the person.
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Twitter on Track To Reach Deal With Elon Musk as Soon as Today

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  • by thegarbz ( 1787294 ) on Monday April 25, 2022 @06:44AM (#62476006)

    Reaching a deal isn't the last step(s), shareholder and regulatory approval are.

    • by DeathToBill ( 601486 ) on Monday April 25, 2022 @07:20AM (#62476100) Journal

      No, but it might be the "last stretch of negotiations" which is what was claimed.

    • Musk's real end game (Score:4, Interesting)

      by Comboman ( 895500 ) on Monday April 25, 2022 @07:39AM (#62476162)

      Let's see, Musk makes a Twitter announcement about taking a company private (that he owns a lot of shares in). Share price goes up. Then he rug-pulls. It has happened before [sec.gov], it will happen again.

      • Let's see, Musk makes a Twitter announcement about taking a company private (that he owns a lot of shares in). Share price goes up. Then he rug-pulls. It has happened before [sec.gov], it will happen again.

        I've heard that last part from Charlton Heston [youtube.com]. The parallel sounds about right... :-)

    • Regulatory shouldn't be a problem. There are a bunch of social media companies, and Musk doesn't own any others. Unless the SEC pulls something crazy over Musk's paperwork issues (what I've heard from financial podcasts, that's, at the very worst, a medium-sized fine) I don't see why it wouldn't clear approval.

      As for shareholder approval, the three largest shareholders are Musk, Morgan Stanley whom is backing musk, and Jack Dorsey whom also approves the purchase.

      So it's possible that the majority of the rem

  • by Sebby ( 238625 ) on Monday April 25, 2022 @06:45AM (#62476008)

    Have to wonder if Musk’s bluster is all ego/hubris and if it’ll all end up ruining Twitter rather than improve it. Time will tell I guess.

    • Re: (Score:2, Insightful)

      by beepsky ( 6008348 )
      Nothing could be worse than the shithole that Twitter is now.
      "Ruin it"? Lmao, impossible.
    • It's a valid question, but I'm not sure if many people care if Twitter survives or fails.
    • I'm having a really hard time thinking of any realistic measure that would make it either better or worse. It's innately shitty, by design, and people use it because they like shit.

      It's no less shitty than it can be, but it can't get much shittier either.

      Death might be the best outcome here. If that is Musk's plan, I'm all for it. Somehow I doubt it though.

    • Musk is an odd fellow. He is difficult to predict, jumping from practical and genius, to crazy and idiotic. The Musk Fans love him, because they focus on what he says that they believe in, and place all their hopes and dreams within him. While the haters focus on his nonsense and stuff he says that they hate.

      He does seem to keep his ego in check, with the attempt of his intellect realizing that someone else may have a better idea. I expect a future Twitter isn't going to be like what Musk thinks a future

    • Being his career has been one of the King Midas touch with every company he's been a part of, seems odds are against you that he'll ruin it.

    • I'll be deleting my account.

  • Shit's got real (Score:5, Insightful)

    by mrsam ( 12205 ) on Monday April 25, 2022 @07:05AM (#62476056) Homepage

    The reason that the board is now talking to Elon Musk is because, finally, they're afraid of their own hides.

    They have no choice. Directors have a fiduciary obligation to their shareholders. It's tough to argue that when someone who walks in and offers far more cash to their shareholders that they hope to ever see, in any foreseeable future, it's not in the best fiduciary interests of their shareholders.

    The directors tried to handwaive away Elon Musk's initial offer, citing the fact that his sources of funding were uncertain. Well, they don't have that excuse any more. He showed them the money.

    They simply can't come up with a valid excuse for turning him away, any more. They ran out of hands to waive. Otherwise their asses will be class-actioned all the way to the moon, not to mention any possible involvement from the feds, for breaching their fiduciary duties. They can't expect that their political alignment with the ruling class will let them skate.

    So, with the directors' own hides on the line, they really have no choice but to sell to Musk. All they can do is haggle about the price. But they don't really have a good position to negotiate. Twitter is as good as sold.

    • by mrsam ( 12205 )

      P.S.: TWTR's annual meeting is on May 25th. Bring popcorn.

    • > they're afraid of their own hides

      Which means they've found a patsy to pin the NY Post problem on, among others.

      Notice how Dorsey has been trying to distance himself from the board?

    • Re: (Score:2, Informative)

      Comment removed based on user account deletion
      • But if the Twitter board believes the share price will ultimately go substantially above that,

        Future growth is already factored into the current price. The board is delusional.

      • The thing is their user share is close to, or has peaked. It will only decline from there regardless of if Musk buys it or not.

        I'm assuming if Musk buys it there will be a similar exodus to what happened to MySpace once News Corp bought it but that depends on how both political sides perceive how the company is run. Twitter needs to be perceived at neutral to survive, but I don't think Musk, or anyone for that matter, can accomplish this when the right thinks it's a left echo chamber and the left thinks its

  • as Twitter becomes more useless than it was before under an Olgarch's control

    • by ThomasBHardy ( 827616 ) on Monday April 25, 2022 @07:44AM (#62476184)

      Define "useless".

      Once under an American oligarch, it'll be more useful for the oligarchs certainly.

      The illusion that Musk is somehow a virtuous pillar that only wants to do good for mankind is surprisingly well received. He claims that Twitter is the digital vision of free speech, and we cheer as he takes that power under his personal control.

  • Here's a question... (Score:3, Informative)

    by ttspttsp ( 7600944 ) on Monday April 25, 2022 @07:43AM (#62476174)
    If the deal goes through, what do you think the chances are that MSM outlets like CNN continue to put their guests' Twitter handle on the screen while being interviewed?
    • CNN isn't even close to being "MSM" as you call it. Fox has been beating them for 81 quarters now https://www.forbes.com/sites/m... [forbes.com]

      Guess what that makes Fox?

      • My question is, will we now stop seeing reporters' and analysts' Twitter handle on the TV screen while they are speaking if Musk successfully buys Twitter. I didn't mean to trigger you by calling CNN MSM.
    • CNN is freaking out too much over their own ownership changes right now to be worried about Twitter's. Their streaming dud flamed out spectacularly and the remaining "journalists" on board that have nothing in their bag of tricks except "Trump sucks" know that their future at CNN is less than assured.
      • shoot, it was a mistake to mention CNN. CNN can live or die, I don't care. If they live I wonder if they (and other MSM) will continue to promote Twitter on their broadcasts and by doing so infer that Twitter is a town square, if Elon Musk buys the company.
    • Why isn't FOX ever mentioned as MSN. Curious how Rupert Murdoch's media empire is never the target. The Oligarchs really know how to mind control the sheep.
  • I hope this purchase of Twitter is as financially successful for Musk as MySpace was for News Corps.

    Because I don't care that it's Twitter, and I don't care that it's Elon Musk. I just care that it's being ridiculously overvalued.

  • Does anyone else find it a little unnerving that there are people on this planet that can just up and casually buy a company worth tens of billions of dollars like it was a cheap car?

  • Short sellers are calling out DWAC, the SPAC trying to reverse merger with Trump's Truth social shit. [twitter.com]

    I wonder what a Twitter sale will mean for them ... i.e. If Trump is allowed back, then what?

    • It means it's dead in the water and some people are probably out a bucket of cash.

      To his credit it doesn't seem like Trump put much of his own money behind Truth. I think he was waiting to see if it caught traction but if you put Devin Nunes in charge of something it's basically destined to fail.

  • Anyone with access beyond the paywall seeing info?
    I'm curious as to the list of big names that are helping fund his alliance to buy out Twitter.
    Seems like that's info people should be asking.

  • Given the statements from Musk about "best and final offer", it is unclear what is there to negotiate. On the hand hand, given the other statement about not paying board members, I assume this is actually about getting money for the board members.
  • ...a person with knowledge of knowledge of the matter said...

    I know it was probably an honest typo, but I still couldn't help but be reminder of Ferris Bueller's Day Off:

    "My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with a girl who saw Ferris pass out at 31-Flavors last night."

  • by mveloso ( 325617 ) on Monday April 25, 2022 @10:09AM (#62476738)

    Really, twitter has the potential to be a real forum.

    They need Twitter spaces - make areas where certain speech isn't allowed. People can add and remove themselves as desired.

  • by Alascom ( 95042 ) on Monday April 25, 2022 @11:06AM (#62477036)

    He is paying about $20 billion in cash from his recent stock sale for which he paid $8 billion in U.S. income taxes. The rest is coming from pledged asset lines (PAL) secured by Morgan Stanley. A PAL is a loan that is guaranteed by assets (highly appreciated Telsa stock). The loan to asset ratio quoted by Morgan Stanley for Tesla is 20%. The interest rate on the PAL will likely be about 1%.

    Anyone with stock can get similar PALs through Charles Schwab, JP Morgan, Morgan Stanley, or others. To get a rate similar to Musks, you'll need about $8 million. For stable companies, like Google, they will loan up to 80% of the stock value. For volatile companies like Telsa only about 20-30%. The lenders have a nearly guaranteed payback so the 1% interest is practically free money.

    Hope that helps.

  • It is illegal to manipulate prices, either in pump & dump scheme or in a short & distort scheme. Coordinating buy/sell order etc are illegal. Leaking non public information is illegal.

    But all these things happen, and they wrong doers have developed methods to elude detection and conviction. Given the free of all nature of Twitter, many of them might have let their guard down. Or mistakenly believed using burner phone or something can keep law enforcement away and Twitter to says it will protect pr

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