Reading Special Draft | Suddenly terminating the acquisition of Twitter, what is Musk?

The process of Musk's acquisition of Twitter can be described as twists and turns.

On July 8th, Musk announced a plan to terminate $ 44 billion to acquire Twitter. He believes that the number of robot accounts on Twitter is more than the company claims. Twitter has made false and misleading statements, which violates multiple terms in the agreement. At the same time, Musk also said that Twitter fired some senior managers and one -third of talent recruitment teams, which violated Twitter's obligation to "basically maintain its current business organization". Twitter was unwilling to show his weakness, and directly sued Musk to court, expressing his confidence to win the lawsuit in court. Affected by this, Twitter's stock price fell sharply.

So the question is, why did Musk destroy the contract? Does this rare huge transaction mean this end?

For the above issues, I give two observations.

No.1

Musk attempts to "bargain"

First of all, Musk's suspension of acquisitions with the argument of many robot accounts with a Twitter platform is only a appearance. His actions are mostly to fight for re -negotiation and try to "bargain".

You know, Musk's privatization of Twitter will cost $ 44 billion. Judging from the current news, this money will be cash payment. Although Musk is now the richest man in the world, after all, wealth stock and cash cannot be equivalent. If Musk sells Tesla's shares, it is likely to cause Tesla's stock price to fluctuate.

It is playful that a screenshot of Musk's SMS interaction with Bill Gates has flowed on the Internet a few months ago. It can be read from the figure that Musk had a lot of heart to Gates ’s previous time, and now Gates still holds a lot of empty Tesla. If Gates can be short Tesla, then other wealthy U.S. wealthy may also do so. In fact, the rich people such as Bezos not only have a direct competition with Musk, but also disagree with each other in political opinions. If these rich people take advantage of Musk's cash out of stocks, it is likely to cause Musk to be unable to fight.

A netizen exposed the text message between Musk and Bill Gates

Therefore, the purchase price is too high, which obviously has become one of Musk's concerns. From this perspective, Musk is likely not to change the hexagram, but to bargain. Re -negotiation is not without precedent. Previously, the Jewelry brand Tiffany's prosecution in 2020 The practice of the Louis Vuitton Group (LVMH) tried to withdraw from the acquisition agreement was a similar situation. At that time, after a long tug -of -tug war, LVMH finally acquired Tiffany at the original agreed price, a decrease of 400 million US dollars than the original amount.

No.2

A decrease in U.S. economic expectations

On the other hand, Musk suddenly stopped the acquisition plan, which was closely related to his expected judgment in the future. With many uncertain factors such as turbulent international situation, rising interest rates, and potential decline, Musk began to shrink his expectations.

According to reports, Musk said in an internal email in June this year, saying "super bad premonition" of the US economy; in early July, Musk once again stated on a international economic forum that "the next wave of economic recession in the United States may be very very declined in the United States. It will come soon. Although it will not be 100 % determined, I think the possibility of happening in the short term is very high. "At the same time, Tesla suspended the recruitment worldwide and plans to Denuction of 10%of official employees.

Tesla lay off nearly 10,000 people and stopped global recruitment at the same time.

In addition, there are also analysis that in the past few months, there have been many fierce conflicts in Musk and Twitter's boards. Many employees who Twitter were dissatisfied with Musk, and even some employees said they would resign. Before Musk had "settled the bag", he explained the existing mechanism of Twitter through multiple occasions, such as completely canceling the salary of the board of directors and the cancellation of the network audit. Some remarks are likely to intensify the contradiction between Musk and Twitter. If this contradiction is difficult to bridge, the sudden variables before Musk's official acquisition of Twitter are also expected.

Of course, Musk wants to say "breakup" with Twitter.As early as the end of April, Musk reached an agreement with Twitter. In some cases, any party interrupted the transaction, and the other party had to pay the opponent's US $ 1 billion in reverse termination fee.Compensation.In short, Musk's cancellation of the acquisition is indeed a bad news for Twitter shareholders.However, this drama is destined to become a serial. How to perform the follow -up plot may continue to wait and see.

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