No Due Diligence in Twitter Deal

Wow. Just wow.

Twitter shares details of Elon Musk deal
https://www.dw.com/en/twitter-shares-details-of-elon-musk-de…

Instead of due diligence prior to inking the deal, Musk has instead taken feverishly to Twitter after signing the deal on April 25 to complain about fake users of the social media service and a lack of SEC oversight.

“Mr. Musk did not ask to enter into a confidentiality agreement or seek from Twitter any non-public info regarding Twitter,” Twitter said in its statement.


Musk did not seek due diligence and the $44b deal will be completed: Twitter
https://www.zdnet.com/article/musk-did-not-seek-due-diligenc…

Meanwhile, Twitter released its account of negotiations with Musk on Tuesday, revealing that the billionaire did not raise questions regarding non-public issues pertaining to the social media company – issues that he cited in declaring the acquisition on hold.

Twitter’s proxy statement claimed that the Tesla CEO negotiated the $44 billion deal without carrying out any due diligence.


How do you agree to spend $44 billion without first taking a look at the internal books? If Twitter used a shoddy method to count those 5% fake accounts, then there is nothing Musk can say or do about it. They are not required to tell him. He did not make it part of the deal. Dude doesn’t even know what he is buying…

22 Likes

https://youtu.be/tshDMTRZBFU

If you listen to the beginning of this Twitter was geared up to do extremely well business wise without Musk. The reasons are laid out. Then the video gets into chit no one needs to hear on how to use Twitter.

How do you agree to spend $44 billion without first taking a look at the internal books? If Twitter used a shoddy method to count those 5% fake accounts, then there is nothing Musk can say or do about it. They are not required to tell him. He did not make it part of the deal. Dude doesn’t even know what he is buying…

I’ve been burned before when buying a stock that revolves around a good idea, great even, but not necessarily a good business. And this is what gives me pause in investing in Musk’s excellent ideas. One can be a genius wrt invention, and absolutely insane wrt business.

IP,
still mourning KERA, which though better than Lasik, could not survive the deep pockets of their competition

1 Like

How much “due diligence” did Elon do when he said he was going to Mars?

Musk is obviously operating on an elevated plane not understandable to the average investor.

All the drama is Musk’s attempt to buy twitter at a lower price.

intercst

1 Like

And this is what gives me pause in investing in Musk’s excellent ideas. One can be a genius wrt invention, and absolutely insane wrt business.

I’m also reminded of Henry Ford who was one of the greatest industrialists of all time, and was also borderline insane.

1 Like

This is not in praise of Musk…

He starts something and then develops it. He believes he can walk in and develop Twitter.

I doubt that is the case.