Posted on 07/08/2022 11:14:09 PM PDT by conservative98
OutKick founder Clay Travis predicted how billionaire Elon Musk's deal to buy Twitter will play out Friday on "Jesse Watters Primetime."
CLAY TRAVIS: What's going to end up happening — I'm looking right now, the stock price is down around $2 in the after-hours trading, which suggests what I think is the most likely outcome here. Which is Elon Musk and Twitter are going to engage in a protracted legal battle before they end up coming to an agreement on — if I were predicting a purchase price — somewhere less than $44 billion. Musk can argue that he's getting some sort of compensation for what he believes are misattributed numbers of users on the Twitter platform.
Twitter can still get a better value than they would if Musk were allowed to completely walk away and their stock was returned to the open market. It likely would fall into the 20s — near around half of what Elon Musk is willing to purchase for. So based on the way the stock market is reacting here in the after-hours to this news, I think there's going to be some sort of negotiated settlement.
WATCH THE FULL INTERVIEW BELOW:
(Excerpt) Read more at foxnews.com ...
This is what I’ve been saying every since Musk announced that there was an issue with the number of bots on Twitter vs. the number of actual users. There’s a good chance that he’ll end up buying Twitter, but at a substantially lower price.
I agree. Musk might have had it planned from the beginning.
Duh Twitter has not wanted to give up the except number of users, no soup for you twitter
What I could see Musk doing, because this seems to be how he operates, is paying the billion to pull out. Then, when the stock crashes, buy it up at the depressed price.
it’s silly to use after hours trading on a summer Friday afternoon as a good indicator of what stock price will be on Monday - when the market is informed, at full speed. if Musk doesn’t engage at a lower price, he has seen enough to know that the internals are a disaster.
Presently, the stock price is $36.81 (down from a peak of $77 in early 2021). Down from $51 back in April.
I’d take a guess another $5 drop by the end of the month....maybe leveling at $28. The $44-B offer is crap at this point. Probably gets closer to $30-B, and a lot of stock-holders pumped-up angry about the screw-job. The board/CEO? Wouldn’t shock me if a couple of the board folks exit shortly.
The entire Board has demonstrated remarkable mismanagement. Good chance the entire Board will be forced off by stockholders.
Normal SEC would have stepped in by this point, but they’ve been dismantled to the degree by the Biden team....that it’s just a bunch of 5th grade kids running it.
Clay Travis
GOPe rah rah
No thanks
And if he gets this settlement because Twitter vastly overstated its real number of users?
Then Musk owns a company that’s going to get sued by every advertiser on its platform.
Wardaddy
Low IQ gibberish
No thanks
He is a crazy, genius with more money than anyone on earth, so how can a semi-normal human predict this man's moves?
It looks like he has run a bluff in order to get a better deal on the price, but maybe that's not his real end game...dunno.
I don’t think he had any intention of buying Twitter. All these tech companies are making obscene amounts of money by inflating their numbers. He knows this, they know this, and he is calling them out. Not sure how it will all play out, but Twitter is being circled by Hyenas getting ready to eat, stock holders and advertisers. I wonder if Facebook is watching. Netflix would be doing a lot better if they could make money based on fictitious numbers.
Did Clay Travis acknowledge that his prediction eerily matches that of Trump and Bannon, set forth weeks ago??
On whose behalf though? The SEC hates Elon Musk and the feeling is mutual.
Musk is an engineer not a lawyer. He signed a bad contract to buy Twitter and may be required to honor it.
Yes…. If he wanted to get the price reduced, this is exactly how he would go about doing it.
bad contract to buy Twitter and may be required to honor it.
Musk has the obvious signs of Damaged Goods for his side to reject the offer. Like A Lemon Law of huge company.
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