in Uncategorized

A material adverse effect

Matt Levine brings us up to speed on Elon Musk’s attempt to get out of the deal he signed to acquire Twitter for $54.20 per share. Musk is obligated to the deal unless he can establish that Twitter isn’t providing important business fundamentals, including the methodology that they used in determining the percentage of bots among the user base. But Twitter can’t open their kimono on that without revealing sensitive private user data to Musk.

Musk’s lawyers say he’d be happy to sign an NDA. Although, as Levine points out, based on Musk’s history it’s not that simple.

If you give him sensitive user data he is just absolutely going to tweet about it, and trusting his promises not to would be dumb. And if he does break his promises, what can Twitter do? Sue him to call off the deal? Twitter doesn’t want to call off the deal. Musk does!

So he wins and the shareholders lose? Maybe, maybe not. But who knows? With Musk nothing is ever a sure bet. In any case, watching this deal evolve is like having a bonus extra season of Silicon Valley to watch.

Write a Comment

Comment