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Twitter's stock falls after Musk calls refusal to provide spam/fake account info a 'material breach' of the buyout deal
MarketWatch ^ | 06/06/2022 | Tomi Kilgore

Posted on 06/06/2022 7:17:56 AM PDT by Eccl 10:2

Shares of Twitter Inc. TWTR, -3.91% sank 5.0% in premarket trading Monday, after Elon Musk disclosed that he reiterated his request for information has he evaluates the number of spam and fake accounts on the social media company's platform. In a letter to Twitter via Skadden, Arps, Slate, Meagher & Flom LLP, Musk, the Tesla Inc. TSLA, 1.82% chief executive who has agreed to buy Twitter for $54.20 a share, said the refusal to provide the information is a "clear material breach" of Twitter's obligations under the merger deal, and Musk therefore reserves the right to terminate the deal if he chooses. Tesla's stock rallied 3.5% in premarket trading. "As Twitter's prospective owner, Mr. Musk is clearly entitled to the requested data to enable him to prepare for transitioning Twitter's business to his ownership and to facilitate his transaction financing," the letter stated. "To do both, he must have a complete and accurate understanding of the very core of Twitter's business model-its active user base." Musk said Twitter's refusal to provide the information makes him suspicious, and raises concerns over what he might uncover from the requested information. Twitter's stock has shed 7.1% year to date through Friday, while the S&P 500 SPX, 1.31% has lost 13.8%.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: duediligence; elon; elonmusk; ghislainemaxwell; internet; jeffreyepstein; musk; socialmedia; truthsocial; twitter
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To: JudyinCanada

We were BRUTAL Cribbage players at our house when I was a kid. Take. No. Prisoners! Been playing since I was about 4 years old. I’m getting to the point where I just might go hang out with the old duffers at the VFW on Tuesdays to get my fix. ;)

I beat ‘The Old Man’ with a 29 hand once and ONLY that one time in my entire life. It was glorious! A Jack up and all fives. And he could SEE it coming too, LOL! We were playing with my lucky ‘Snoopy’ deck of cards. Pretty sure that was the reason. :)


21 posted on 06/06/2022 8:49:31 AM PDT by Diana in Wisconsin (I don't have, 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set. )
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To: Eccl 10:2

Good for Elon for exposing these pinko frauds.
Twit-face has almost always been a degenerate leftist dumpster fire.
SEC should investigate, advertisers should sue. But they won’t. They are all in collusion and delusional.


22 posted on 06/06/2022 9:04:03 AM PDT by vpintheak (Live free, or die!)
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To: Armando Guerra

The SEC should be investigating Twitter for falsely claiming the inflated numbers of followers.


Good one.You know better than that though, the swamp doesn’t investigate it’s own propaganda mouthpiece.


23 posted on 06/06/2022 9:33:12 AM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: vpintheak
It's sad to say this but I'm thinking the Twitter advertisers won't care that they have been getting ripped off and probably realized it all along. They will consider their losses as a contribution to "get Drumpf" at any cost.

The real challenge here is to get people to switch from Twitter to Truth.

Truth is up to over 3.2 million active users but they have a long, long way to go to reach the Twitter numbers.

24 posted on 06/06/2022 9:36:05 AM PDT by SamAdams76 (3,201,662 active users on Truth Social)
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To: Eccl 10:2

The management problem at Twitter is that they have been selling advertising on Twitter for years with doctored subscriber and following numbers. If they turn over the true information as to the incredible number of bot accounts they have rather than the unrealistically low 5% they have been claiming to have, their fraud will have been exposed and individual and class action law suits will ruin their day. They want Musk’s money, but they don’t want to go broke getting it. Sec will be on them also as well as Republican majority Congress next term holding hearings on their fraud.


25 posted on 06/06/2022 9:36:24 AM PDT by chuckee
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To: chuckee

Twit is in a real pickle because, IMO, THEY will owe the $1B if he pulls out due to them breaching the contract. They are truly stuck between a rock and a hard place. If they reveal how bad the fake accts are, they get sued and lose billions from advertisers. If they don’t release it they lose a billion to EM. Maybe the latter is the cheaper way to go.


26 posted on 06/06/2022 9:46:31 AM PDT by spacejunkie2001
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To: Diana in Wisconsin

Ha! Good for you!

I didn’t know a Jack up and four 5’s in the hand was 29 as well. I thought it was three 5’s in the hand along with the off-suit Jack.

15 - 2,4,6,8,10,12,14,16
Four 5’s is another 12 which brings us to 28
Jack in the hand worth another point - 29.


27 posted on 06/06/2022 9:46:59 AM PDT by JudyinCanada (Maranatha)
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To: dgbrown

“Don’t forget all the advertisers that have been lied to. Will they get a refund?”

Every payout must include a lawsuit as that provides a tax-free exchange in most cases. I would expect an advertiser class action to do just that.


28 posted on 06/06/2022 10:12:36 AM PDT by CodeToad (Arm up! They Have!)
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To: Eccl 10:2

I’d say that elon is now remarking to himself, “My work here is done now.”

I don’t think he ever did intend to buy titter. It is all about entertainment for musk.


29 posted on 06/06/2022 10:21:14 AM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.)
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To: Eccl 10:2

They already are. That hippie guy testified to congress that only 5% of the Twitter accounts were fake. He lied. But it’s not like he will get into “trouble” for lying! He’s a hippie! They don’t smell bad to the deep state!


30 posted on 06/06/2022 10:32:35 AM PDT by gr8eman (Qui non laborat, non manducet)
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To: JudyinCanada

A jack up instead of off-suit in the hand IS 28…the 29 is as you stated, the final 5 needs to be pulled up from the deck.

However, if you are the dealer, you might prefer the four fives in your hand and having any jack pulled up on the deck. You get the two pegging points plus a 28 hand…it’s kind of like a 30…and hopefully your opponent will lead a face card…


31 posted on 06/06/2022 10:43:57 AM PDT by Scott from the Left Coast (Make Orwell Fiction Again)
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To: tennmountainman

Life time accounting person here:

THEY DO NOT HAVE ACCURATE NUMBERS-—Musk caught them out.


32 posted on 06/06/2022 10:54:38 AM PDT by ridesthemiles
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To: SamAdams76

I’m on Truth. It’s OK, but I’m not super into social media. Prefer reporting and reading in context on my own time.


33 posted on 06/06/2022 10:57:30 AM PDT by vpintheak (Live free, or die!)
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To: Diana in Wisconsin

A neighbor was complaining some years ago about how poorly their kids did with math-—

I told her to get a cribbage board & cards & teach that game to the kids. IT would teach them to count quickly.

She thought I was a heathen for even suggesting such.


34 posted on 06/06/2022 10:58:42 AM PDT by ridesthemiles
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To: VTenigma

Musk still owns 9%.

I think he can force the hand of the SEC to investigate.


35 posted on 06/06/2022 10:59:30 AM PDT by ridesthemiles
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To: SamAdams76

IMO, the Twitter numbers are like the 81 MILLION votes Biden got.


36 posted on 06/06/2022 11:00:20 AM PDT by ridesthemiles
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To: Scott from the Left Coast

What? The turned up Jack is worth two points lol? We’ve only been scoring one!


37 posted on 06/06/2022 11:09:26 AM PDT by JudyinCanada (Maranatha)
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To: JudyinCanada

Always take that extra TRUMP point, and hurry up with that Crib, LOL!


38 posted on 06/06/2022 11:32:15 AM PDT by Diana in Wisconsin (I don't have, 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set. )
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To: JudyinCanada

It’s been two as long as I’ve been playing…perhaps a regional rule difference.


39 posted on 06/06/2022 11:46:01 AM PDT by Scott from the Left Coast (Make Orwell Fiction Again)
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To: Bruce Campbells Chin

[Musk is completely correct on this legally. He has the right to due diligence prior to finalizing the purchase, and that would include verifying the validity of the number of customers.

Twitter management has a real problem here. If they refuse to comply with due diligence requests, they could be sued by shareholders for derailing a profitable deal. ]


If Reuters is to be believed, Musk waived due diligence:

https://cyprus-mail.com/2022/05/18/why-twitter-has-ignored-elon-musks-trolling/
[Musk, the world’s richest person, waived due diligence when he agreed to buy Twitter on April 25, in an effort to get the San Francisco-based company to accept his “best and final offer.”]


40 posted on 06/06/2022 2:06:41 PM PDT by Zhang Fei (My dad had a Delta 88. That was a car. It was like driving your living room.)
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