Musk resigns as Twitter CEO, Linda Yaccarino takes over

[American Legionaries]

If that’s true then Twitter is going to be in major hot water with the SEC. They reported to the SEC that bots where less than 5%, if that’s not the case that’s misrepresentation of their financials and fraud case.

Why? It’s already a open secret that Twitter has shit tons of bots and they represent a sizable percentage of total users.

Because "everyone knows XYZ" isn't evidence. But if they can actually prove that bot accounts make up a larger share than Twitter told the FEC, and that Twitter knew this, then that's a crime.

[Prima Scriptura]

Why? It’s already a open secret that Twitter has shit tons of bots and they represent a sizable percentage of total users.

Because "everyone knows XYZ" isn't evidence. But if they can actually prove that bot accounts make up a larger share than Twitter told the FEC, and that Twitter knew this, then that's a crime.

Well, that makes a difference. IMHO, it’s either Twitter doesn’t care about bots making a significant amount of the user base, or they actually want the bots. I see a lot of high profile, politically natured accounts of high profile figures having higher amounts of bot followers than regular accounts. This may also play a role in this situation

[Ethel mermania]

If that’s true then Twitter is going to be in major hot water with the SEC. They reported to the SEC that bots where less than 5%, if that’s not the case that’s misrepresentation of their financials and fraud case.

Why? It’s already a open secret that Twitter has shit tons of bots and they represent a sizable percentage of total users.

Misrepresents the financials. Open secrets dont count. The quarterly 10k's do.

[Bear Stearns]

If that’s true then Twitter is going to be in major hot water with the SEC. They reported to the SEC that bots where less than 5%, if that’s not the case that’s misrepresentation of their financials and fraud case.

Why? It’s already a open secret that Twitter has shit tons of bots and they represent a sizable percentage of total users.

that's not how it works. 10ks are full of qualifiers and disclosures for a reason.

[Free Algerstonia]

If that’s true then Twitter is going to be in major hot water with the SEC. They reported to the SEC that bots where less than 5%, if that’s not the case that’s misrepresentation of their financials and fraud case.

I would leave that to the SEC's audit.

Who the fuck is SparkToro?

the stock exchange commission is corrupt and regularly sides with money, you know that right?

[The Black Forrest]

I would leave that to the SEC's audit.

Who the fuck is SparkToro?

the stock exchange commission is corrupt and regularly sides with money, you know that right?

Oh don’t be coy. Let the last veil drop.

[Ethel mermania]

I would leave that to the SEC's audit.

Who the fuck is SparkToro?

the stock exchange commission is corrupt and regularly sides with money, you know that right?

Which side doesn't have money?

Besides the SEC hates Musk, they will do him no favors unless they are required to by law.

[Prima Scriptura]

the stock exchange commission is corrupt and regularly sides with money, you know that right?

Which side doesn't have money?

Besides the SEC hates Musk, they will do him no favors unless they are required to by law.

What makes you say the SEC hates Musk?

[Ethel mermania]

Which side doesn't have money?

Besides the SEC hates Musk, they will do him no favors unless they are required to by law.

What makes you say the SEC hates Musk?

We will start here

https://www.sec.gov/news/press-release/2018-226

Just Google. SEC Musk. Its pages of stuff for years and years.

[Archinstinct]

Elon's concern over the number of bots on twitter is justified. After all, according to twitter audit about 15% of his followers are considered bots. twitteraudit.com/elonmusk

[The Black Forrest]

Elon's concern over the number of bots on twitter is justified. After all, according to twitter audit about 15% of his followers are considered bots. twitteraudit.com/elonmusk

No not really. His concern is he over paid and didn’t do his research. He is that way. Sees something shiny and runs with it until he sees another shiny.

[The Black Forrest]

the stock exchange commission is corrupt and regularly sides with money, you know that right?

Which side doesn't have money?

Besides the SEC hates Musk, they will do him no favors unless they are required to by law.

Where is the hate? He was naughty and was punished.

[Forsher]

Elon's concern over the number of bots on twitter is justified. After all, according to twitter audit about 15% of his followers are considered bots. twitteraudit.com/elonmusk

No not really. His concern is he over paid and didn’t do his research. He is that way. Sees something shiny and runs with it until he sees another shiny.

Again, he already knew he was massively overpaying. The price he offered was just divorced entirely from the market price at the time:



And the price spike just before it starts cratering at the end of the graph is presumably due to Musk's own purchasing activities to get to the 9% stake.

Mind you, Elon Musk is legitimately a fucking idiot that doesn't have a clue how economics works.

[Archinstinct]

Elon's concern over the number of bots on twitter is justified. After all, according to twitter audit about 15% of his followers are considered bots. twitteraudit.com/elonmusk

No not really. His concern is he over paid and didn’t do his research. He is that way. Sees something shiny and runs with it until he sees another shiny.

The thing about more than 5% of twitter's user base being bots is still true though. I was just using that guy as an example.

[Kerwa]

Elon's concern over the number of bots on twitter is justified. After all, according to twitter audit about 15% of his followers are considered bots. twitteraudit.com/elonmusk

No not really. His concern is he over paid and didn’t do his research. He is that way. Sees something shiny and runs with it until he sees another shiny.

When they are giving false numbers for mDAU etc. in their financials it’s hard to lay blame at his door. He though he was getting one thing and he’s getting another because corporate fraud (if the bot thing is true),

I think the penalties for this can be quite severe. Sarbox stuff.

[Kerwa]

No not really. His concern is he over paid and didn’t do his research. He is that way. Sees something shiny and runs with it until he sees another shiny.

Again, he already knew he was massively overpaying. The price he offered was just divorced entirely from the market price at the time:



And the price spike just before it starts cratering at the end of the graph is presumably due to Musk's own purchasing activities to get to the 9% stake.

Mind you, Elon Musk is legitimately a fucking idiot that doesn't have a clue how economics works.

You are always going to “overpay” taking a company private because of control premium.

[Forsher]

Again, he already knew he was massively overpaying. The price he offered was just divorced entirely from the market price at the time:



And the price spike just before it starts cratering at the end of the graph is presumably due to Musk's own purchasing activities to get to the 9% stake.

Mind you, Elon Musk is legitimately a fucking idiot that doesn't have a clue how economics works.

You are always going to “overpay” taking a company private because of control premium.

Even if this is true, that doesn't establish whether the price he offered is consistent with what you'd expect the control premium to be. Wikipedia suggests a common lower bound is 20%, which implies that Musk's offer was based on a "true" value of $45.17. Twitter hasn't traded at that level since late 2021, which may have been when he started buying shares.

Wikipedia's upper bound for control premiums in practice is 40%. That implies Musk would be pricing Twitter at more like $38.71. This is a January this year price, so also kind of makes sense as an anchor from when Musk was acquiring his stake. However, I do think it's more important to note that even this is much higher than what Twitter's historically performed at (as you can see). Of course, I don't know how inflation really comes into it with shares.

But as I said when I originally posted that graph, I'm not an astrologer so I don't truck with the stock market. The reason I didn't mention control premiums or anything specific like that earlier is I haven't seen it come up. Rather, if you go back to the more original articles about this scheme, what you get is stuff like:

Twitter shares on Monday closed more than 5% higher after the deal was announced.

But the price remained lower than Mr Musk's $54.20 per share offer, a sign that Wall Street believes he is overpaying for the firm.

The whole thing looks so much more like Elon Musk fucking with share prices using Twitter just because he thinks he can than an earnest attempt to buy Twitter. Hell, I'd believe the argument that he thought he could do a run around that Tweet restriction he's on by buying Twitter and now his legal team has said owning it would change nothing before I believe he's actually interested.

[The Alma Mater]

I wonder if Elon would allow all those tweets about how he was having sex with Amber Heard while she was still married to Depp ..

[Kerwa]

You are always going to “overpay” taking a company private because of control premium.

Even if this is true, that doesn't establish whether the price he offered is consistent with what you'd expect the control premium to be. Wikipedia suggests a common lower bound is 20%, which implies that Musk's offer was based on a "true" value of $45.17. Twitter hasn't traded at that level since late 2021, which may have been when he started buying shares.

Wikipedia's upper bound for control premiums in practice is 40%. That implies Musk would be pricing Twitter at more like $38.71. This is a January this year price, so also kind of makes sense as an anchor from when Musk was acquiring his stake. However, I do think it's more important to note that even this is much higher than what Twitter's historically performed at (as you can see). Of course, I don't know how inflation really comes into it with shares.

But as I said when I originally posted that graph, I'm not an astrologer so I don't truck with the stock market. The reason I didn't mention control premiums or anything specific like that earlier is I haven't seen it come up. Rather, if you go back to the more original articles about this scheme, what you get is stuff like:

Twitter shares on Monday closed more than 5% higher after the deal was announced.

But the price remained lower than Mr Musk's $54.20 per share offer, a sign that Wall Street believes he is overpaying for the firm.

The whole thing looks so much more like Elon Musk fucking with share prices using Twitter just because he thinks he can than an earnest attempt to buy Twitter. Hell, I'd believe the argument that he thought he could do a run around that Tweet restriction he's on by buying Twitter and now his legal team has said owning it would change nothing before I believe he's actually interested.

The price was negotiated directly with the board though, so what the market quoted isn’t relevant. It just explains why it is higher. He’s only overpaid if he can’t turn Twitter around like he plans and make money off the deal (bots issue aside).

You wouldn’t expect Twitter to instantly trade at Elon’s take out price either as the deal isn’t done. There’s the risk it falls through and so the discount. As the final date approaches - assuming it goes through - it will converge.

There’s also the aspect that he’s very wealthy and maybe he just wants to burn Twitter to the ground. Who knows what that is worth to him.

[The Rich Port]

I would leave that to the SEC's audit.

Who the fuck is SparkToro?

the stock exchange commission is corrupt and regularly sides with money, you know that right?

Ah yes, the underfunded underdog... Elon Musk.

[Ifreann]

Business Insider: "A SpaceX flight attendant said Elon Musk exposed himself and propositioned her for sex, documents show. The company paid $250,000 for her silence."

So this is why Elon said that he'd be voting Republican. He was asked to comment and tried to get out ahead of the story.

[Mettaton-EX]

So this is why Elon said that he'd be voting Republican.

tbh i think the main reason is because he's scared of unions. not a coincidence, i think, that this came so soon after biden meeting christian smalls - if even bezos/amazon can't suppress the current wave of unionisation, then he has to see that as a bellwether for his own exploitative businesses

[Ifreann]

So this is why Elon said that he'd be voting Republican.

tbh i think the main reason is because he's scared of unions. not a coincidence, i think, that this came so soon after biden meeting christian smalls - if even bezos/amazon can't suppress the current wave of unionisation, then he has to see that as a bellwether for his own exploitative businesses

The public records of his donations show he's been supporting Republicans for years. Plenty of Democrats too, to be sure. Both parties have plenty to offer the mega rich. But the timeline, to be the best of my understanding, goes thus: Insider contacts Elon for comment on this story before their publishing deadline. He claims there's more to the story than what they know. Insider pushes the publishing deadline. Elon tweets that he'll be voting Republican and says "Now, watch [the Democrats'] dirty tricks campaign against me unfold... [popcorn emoji]". Insider publishes that he pulled his dick out and offered to buy a flight attendant a horse if she'd fuck him. He knew there was a story coming about how he propositioned an employee for sex, so he posts that the Democrats are about to start a dirty tricks campaign against him just because he's voting red.

[Ifreann]

Also, apparently SpaceX's flight crew get pushed into getting qualified, on their own dime, as masseurs. Because Elon likes getting massaged on company flights.

[Hamidiye]

Don't tell me you're surprised that he's a scumbag...