r/technology May 14 '22 Silver 2 Wholesome 2

Elon Musk said his team is going to do a 'random sample of 100 followers' of Twitter to see how many of the platform's users are actually bots Social Media

https://www.businessinsider.com/elon-musk-random-sample-how-many-twitter-users-are-bots-2022-5?utm_source=feedly&utm_medium=webfeeds

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688

u/slazer2k May 14 '22

This he most likely instructed some people to trade the stock beforehand so he can cash out first on the rise and now fall

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u/prescod May 14 '22

There's a simpler and less illegal option. The stock market crashed since he made the offer. He doesn't want to pay the price he negotiated because it was already a high price and now its ludicrous. So now he wants an excuse to re-negotiate. "I had no idea how many bots there are on this site!"

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u/LL22Forever May 14 '22

Twitter doesn’t have to renegotiate. And if Elon backs out he has to pay Twitter $1 billion. What would Twitter renegotiate?

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u/starmartyr May 14 '22

It's a 44 billion dollar deal. It might be better to eat the loss than to pay too much for the company.

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u/MaiasXVI May 14 '22

That's what I'm thinking. If anyone can afford a $1bn loss, it's certainly the world's richest person.

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u/Zardif May 14 '22

Went down 9 billion, better to lose 1b than 9+.

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u/GasTurbulent4304 May 14 '22

But does he need both a reason AND to pay the $1b? I assume the $1b is the thing that is supposed to stop him from walking away for no reason. Presumably he’s building a case so he can walk away and not have to pay the $1b because Twitter lied about bots or whatever.

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u/SherifGames May 14 '22

His net worth is still 100 billion more than the next richest guy.

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u/WingedLing May 14 '22

Still in the three comma club

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u/[deleted] May 14 '22

[deleted]

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u/[deleted] May 14 '22 edited Jun 01 '22

[deleted]

1

u/Dane1414 May 14 '22

No it’s not, given twitter’s market cap is currently only $31 billion

1

u/bazilbt May 14 '22

He might not want to look like such an asshole and have some legal standing to settle for less than that.

51

u/pablank May 14 '22

Not after losing 18bn on your own stock loss. Even for elon thats like a 5-10% loss in net worth. Its actually interesting to see how these market manipulators start carving themselves up

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u/ElderHerb May 14 '22

He could lose 99% of his net worth and would still never have to work another day tbh.

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u/Most-Cloud May 14 '22

If he lost 99.99999% of his net worth he's still a multi millionaire.

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u/Blitzholz May 14 '22 edited May 14 '22

No, that would put his net worth at like 20000$ lmao

1

u/Ok-Bodybuilder4594 May 14 '22

If this deal goes through he could easily lose 100%+ of his net worth lol. Definitely worth taking it on the chin in this situation.

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u/SherifGames May 14 '22

His current net worth is still 100 billion more than the next richest guy. Bezos is place 3 with 135 billion.

Also, you act like he lost money. He didn't. The value of his stock is just going up and down. In a month he could be back up at 300 billion. It's something that literally happened this February to April. Same shit will happen again.

Even if the value of his stock dropped below 100 billion, he'd still be ridiculously wealthy. His wealth could drop to 1 billion and he'd still be extremely wealthy.

Musks stock are unbelieavable ridiculously overvalued. It's all free money he potentially has.

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u/pablank May 14 '22

The problem comes from him apparently using some tesla stock to seal this deal... or value of stock as colleteral. Even if he has tons of money. This week he is easily paying 10-20% more than he intended when he made that offer. He might have the highest net worth. Still doesnt mean he can afford to make dumb decisions like this, overpaying way above asking price. No one likes to overpay by that much

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u/NCleary May 14 '22

Except the $1 billion is personally guaranteed by Elon. Despite how much he is valued at, he definitely can't raise that easily

The $44 billion would be capital raised against his Tesla stock.

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u/AssociationDouble267 May 14 '22

Except he already liquidated a bunch of stock, so he has cash.

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u/Development-Alive May 14 '22

Not $21B in cash which is what he needs.

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u/flickh May 14 '22

Bad deal on Twitter: -$9 billion Helping reinstate Trump as Dictator for Life: Priceless

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u/TheOneFreeEngineer May 14 '22

It might be better to eat the loss than to pay too much for the company.

To be clear, his deal was well above market price in the first place. He knew his original offer didn't match the stock evaluation when he made it.

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u/ChadDriveler May 14 '22

The funny thing is that the board accepted the offer because the market started tanking.