Is Elon Musk a fake buyer?

What is a fake buyer?

I wrote about fake buyers in another post. In summary, they typically exhibit these traits, or behave in these ways:

• They make hasty decisions
• They gloss over contracts
• They tell you about their morality
• They suggest money is not a problem
• They have scant regard for norms, rules, and even laws
• They have no shame in walking back their previous positions
• They are selfish

The typical fake buyer cuts swiftly through all the roadblocks which would stall or slow down another buyer. They cut through red tape with disdain and cut straight to the deal. Their strategy is decisive and clear, and pitched with conviction. That may sound ideal to any seller who has been interrogated by an endless queue of tyre-kickers. But beware.

Once they have their seat at the table and everyone’s attention, they will control the narrative. They can slow it down by obfuscation and deflection. They may sign an agreement which will be ignored where it requires their action. They may achieve similar delays through drip requests – one item at a time.

Elon Musk is not an amateur buyer

Elon Musk has sold and purchased numerous companies in the last 25 years. He has pulled some clever moves in the past to gain or regain control of the boardroom.

He is no fool. He cannot be accused of being unaware of the M&A process. But even if he is, he pays a lot of money to attorneys who know exactly what the rules are.

The Musk – Twitter deal as it now stands

Musk managed to raise the funding required before he made a formal offer through a filing to the SEC on 21 April 2022. The funding letters had all been signed on 20 April or as the Americans would say “April 20” (4/20). He has a thing about 42, 420, 69, and their derivatives.

The Twitter Board accepted the offer at his proposed price of $54.20 per share for the balance of the shares he did not already own on 25 April. There is the original 420 again.

Is Elon Musk a fake buyer?

Time will tell, but let’s look at the evidence as we have it now.

Does Elon Musk have scant regard for rules?

In the agreement signed on 25 April he agreed not to impugn the company or its employees. He broke that undertaking in short order, publicly, and several times.

On several occasions he said that the economics of the deal are not important to him. Like, he’s so rich that it really doesn’t matter if he makes or loses money out of the company he is currently turning inside out.

Much as Trump told Ted Cruz on the campaign stage that his wife was ugly, Musk has publicly called out members of the Board, saying he had no confidence in them.

Most tellingly of all, he summarily dismissed the agreement he is subject to and announced that the deal is on hold.

On July 8 he announced he was terminating the agreement and alleged Twitter was in material breach of the agreement by not supplying him with what appears to be a moving target of data.

Other Elon Musk and Twitter content