“ The fact that Musk is working in such bad faith here — that he seems so unconcerned with law and the contract he signed — cuts both ways. On the one hand, it will certainly annoy a Delaware chancellor; Delaware likes to think of itself as a stable place for corporate deals, with predictable law and binding contracts, and Musk’s antics undermine that. On the other hand it might intimidate a Delaware chancellor: What if the court orders Musk to close the deal and he says no? They’re not gonna put him in Chancery jail. 6 The guy is pretty contemptuous of legal authority; he thinks he is above the law and he might be right. A showdown between Musk and a judge might undermine Delaware corporate law more than letting him weasel out of the deal would.”
While I would want the court to order specific performance as you would... Elon's Trumpian shamelessness seems so depressingly effective (with sec, courts, etc) where his stature, followers, unlimited money and lack of shame just steamroll people like these court judges who don't want to become public figures and get humiliated etc. I mean I hope not, if Delaware court can't resist this then who would but it seems so plausible they will just let him get away with the $1B as they will think "I've done my job is a lot of money " but really feel"i don't want to be harassed and humiliated and become a public figure "
I agree that the risk/reward is favorable, but my question is whether MS can pull out of the debt commitment? What happens if Musk pressures MS to pull out and then who would be responsible for part of the funding? Also, could Musk get a change of venue out of Deleware?
I respect your work, but $20B is so excessive and you are clearly very biased as a shareholder.
The share price was ~ $38 before the rumors. It's now $35 and a $27B market cap company.
So he thinks a settlement check should be for 70% of the size of the total market cap...
Also the entire market is down since the announcement so it's not like Elon is responsible for the ~10% loss since the rumors. If anything, he held the stock price up because of the potential buyout.
I don’t know. First the left screams bloody murder that’s he’s buying it now they want to force him to buy it. He was never going to buy it - he needed an excuse to sell Tesla stock. Mission accomplished. He will continue to sell.
In the meantime, the most damning thing to Twitter will be the bots AND when Elon does discovery on communications with the US Government which will no doubt show they were being directed and therefore violated the 1st amendment making everyone in the platform a plaintiff.
I don’t think it’s cut and dried at all. But - that’s the beautiful thing about the courts.
Company can ask and Court theoretically could force him to close, he doesn’t have a clean option to pay and walk. Matt Levine Bloomberg article on this from a couple days ago was excellent
I thought this article on the legal was excellent
https://www.bloomberg.com/opinion/articles/2022-07-09/elon-s-out
Here without paywall
https://archive.ph/KpcbZ
This was insightful for me
“ The fact that Musk is working in such bad faith here — that he seems so unconcerned with law and the contract he signed — cuts both ways. On the one hand, it will certainly annoy a Delaware chancellor; Delaware likes to think of itself as a stable place for corporate deals, with predictable law and binding contracts, and Musk’s antics undermine that. On the other hand it might intimidate a Delaware chancellor: What if the court orders Musk to close the deal and he says no? They’re not gonna put him in Chancery jail. 6 The guy is pretty contemptuous of legal authority; he thinks he is above the law and he might be right. A showdown between Musk and a judge might undermine Delaware corporate law more than letting him weasel out of the deal would.”
While I would want the court to order specific performance as you would... Elon's Trumpian shamelessness seems so depressingly effective (with sec, courts, etc) where his stature, followers, unlimited money and lack of shame just steamroll people like these court judges who don't want to become public figures and get humiliated etc. I mean I hope not, if Delaware court can't resist this then who would but it seems so plausible they will just let him get away with the $1B as they will think "I've done my job is a lot of money " but really feel"i don't want to be harassed and humiliated and become a public figure "
Thank you!
You said the same thing $20 higher, guess the market completely disagrees
I agree that the risk/reward is favorable, but my question is whether MS can pull out of the debt commitment? What happens if Musk pressures MS to pull out and then who would be responsible for part of the funding? Also, could Musk get a change of venue out of Deleware?
I respect your work, but $20B is so excessive and you are clearly very biased as a shareholder.
The share price was ~ $38 before the rumors. It's now $35 and a $27B market cap company.
So he thinks a settlement check should be for 70% of the size of the total market cap...
Also the entire market is down since the announcement so it's not like Elon is responsible for the ~10% loss since the rumors. If anything, he held the stock price up because of the potential buyout.
No chance.
agreed, author is 100% biased and said the same thing when Twtr was $50 a share
I don’t know. First the left screams bloody murder that’s he’s buying it now they want to force him to buy it. He was never going to buy it - he needed an excuse to sell Tesla stock. Mission accomplished. He will continue to sell.
In the meantime, the most damning thing to Twitter will be the bots AND when Elon does discovery on communications with the US Government which will no doubt show they were being directed and therefore violated the 1st amendment making everyone in the platform a plaintiff.
I don’t think it’s cut and dried at all. But - that’s the beautiful thing about the courts.
This is my concern too. Twitter quickly settled the suit with Alex Berenson once their motion to dismiss was tossed and the case moved onto discovery.
I suspect Elon knows this as well.
Very interesting thoughts - but couldn't Musk simply pay the 1 billion termination fee?
The fee is only if he can’t get financing … but he won’t be able to now (wink wink) so I tend to agree with you that’s the path.
Company can ask and Court theoretically could force him to close, he doesn’t have a clean option to pay and walk. Matt Levine Bloomberg article on this from a couple days ago was excellent