2022-05-13 15:20:51
Elon Musk potentially backing out of the Twitter buyout proves rules are only for the poor.
I don't understand why Conservatives couldn't see this was never about "free speech" this was 100% a market manipulation play from day 1, and it was obvious.
Elon Musk announces he's buying out Twitter, the stock price skyrockets, after he already owned a 9.2% stake in the company. Obviously he bought his shares before announcing his stake, because the price of shares would have shot up before hand.
Now he puts in his offer of buying out the company at $54.20 per share, much higher than he got his 9.2% stake for. This essentially locks the value of the shares at that price, because share holders won't sell for less than that if they know Elon is buying them all out. Essentially as long as you held until the official buyout you were pretty much guaranteed $54.20 a share.
Now Elon can offload his shares at a huge profit. Once the value of the shares starts dropping, buying out the company at $54.20 a share no longer makes sense. Plus general poor market performance drives prices even lower.
Now he can renegotiate the deal because the companies valuation has dropped. But he will mask it by saying some stupid shit like it's on hold because of "fake user account details". Which will drive share prices even lower due to investors realizing the deal might not go through at the agreed price of $54.20 or at all.
https://www.bbc.com/news/business-61433724.amp
The outcomes are one of two scenarios:
- Elon buys out Twitter way cheaper than the original deal
- Elon backs out, and makes tons of profit off his original 9.2% investment.
Either way he wins, and likely gets away with it.
Why is he allowed to just freely manipulate markets? Probably pays a tiny fine to the SEC and goes about his day, will never see the inside of a jail cell.
https://redd.it/uopuhu
@r_latestagecapitalism
364 views12:20
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