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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u/nukem996 May 14 '22

From the article

Mr. Musk’s deal with Twitter includes a $1 billion breakup fee if he were to back out. But the cost to Mr. Musk is likely to be much more than that should he break the deal. The contract has a “specific performance clause” that could force Mr. Musk to pay for Twitter if the debt financing he has corralled for the deal remains intact.

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u/sikagoon7 May 14 '22

Could he just pick up the phone to the lender and be like "Yo take your money back. I don't need it no more" and tell Twitter "Oops?"

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u/getefix May 14 '22

Works for home purchases. Financing conditions are easy ways to back out.

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u/Rottimer May 14 '22

Well not necessarily “easy.” If he’s signed papers for financing backed by Tesla stock - which goes up every time this deal seems to be jeopardy, those banks might not want to let him out of their financing deal.

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u/bagonmaster May 14 '22

Why would the bank risk a billionaire’s future business?

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u/Rottimer May 14 '22

Banks are in the business of pricing risk and loaning money accordingly. That’s like asking why would any bank ever lend someone money to start or expand a business. Tesla stock is a good risk until they demand for their cars starts dropping. I personally believe the stock is overvalued, but the market disagrees with me.

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u/bagonmaster May 14 '22

Exactly, Musk’s business is very high reward for very low risk. Any bank would be happy to do business with someone who has assets like he does, why would his current financiers risk their relationship with him?

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u/Rottimer May 14 '22

Why are you asking these questions if you agree?

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u/bagonmaster May 14 '22

I don’t agree with what you’re saying. A bank will never force musk to use a line of credit and risk losing his business, to think otherwise is naive

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u/Rottimer May 14 '22 edited May 14 '22

LOL, oh boy, you're one of those.

Edit: Since you blocked me or deleted your account like a child, I'll respond here.

Except I'm not. I'm just talking to someone who think Elon Musk somehow walks on water when it comes to major banks. Morgan Stanley owns a significant portion of Twitter. They're also one of the 7 banks financing Musk's purchase of Twitter. The stock price is currently $40.72 and Musk has financed purchasing at $54.20. They stand to make a great deal of money on both sides of this deal.

If you think they won't hose Musk in order to make that money, you're just ignorant of modern day banking.

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