Bravado and a lack of business acumen leave Musk facing a $1B penalty for his Twitter fiasco

Getting waived the suitable to due diligence in his initial supply, Elon Musk now faces the stark fact of possessing uncovered out that his fucking around was a bad strategy. Musk is throwing close to the weakest of excuses, bot counting, in an try to also stroll absent from the $1B separation fee he agreed to.

Gizmondo:

Elon Musk, present-day Tesla CEO and maybe not Twitter’s long term operator, has a concept for the social media network he as soon as coveted but now remarks on with a poop emoji: Show to me that spam bots and faux accounts are much less than 5% of Twitter buyers or watch me blow this entire offer up.

“Yesterday, Twitter’s CEO publicly refused to display proof of <5%. This deal cannot move forward until he does," Musk tweeted early Tuesday morning. The day prior, the richest man in the world had sparred with Twitter CEO Parag Agrawal, tweeting the poop emoji at the executive's explanation of the prevalence of automated accounts on the social network.

Musk has said that advertising won’t be his path forward, so bots shouldn’t matter. Having waived the right to due diligence, the count of bots shouldn’t matter. Bots is the least important number in Twitters SEC filings to point at as inaccurate, as they disclose it as inaccurate.

The poop emoji he responded to Twitter’s CEO with demonstrates his deep understanding of his situation. Having derailed Twitter’s business with about as much planning as my last trip to McDonald’s, Musk has done a lot of damage.

GO Banking:

Uncertainty over the deal has led some to speculate that Musk either wants to back out of the deal or renegotiate the price. But backing out isn’t so simple because he might face a breach-of-contract lawsuit from Twitter that could cost him billions of dollars, CNBC reported.

Musk and Twitter reportedly agreed to a $1 billion “reverse termination fee” when they reached their deal, but that doesn’t mean Musk can just pay the fee and walk away. As CNBC noted, a reverse breakup fee typically applies when a deal can’t close for some outside reason, such as a regulatory intermediation or third-party financing problems. Buyers can also walk away from deals if fraud is exposed, assuming it has a material adverse effect.

However, the reverse termination fee wouldn’t apply simply because Musk thinks he offered too much money for Twitter. Walking away for that reason means Musk would not only have to pay the $1 billion fee, but also risk being sued for billions of dollars in damages.

Elon Musk appears a very wealthy child who wants us all to hear what he has to say.