After the suspension of the sale of Twitter, the billionaire develops this “Machiavellian” plan

The Twitter takeover case by eccentric billionaire Elon Musk is full of twists and turns. After announcing the suspension of the sale due to doubts about the number of fake accounts on the social network, Musk seems to have developed a plan with a very specific goal: to acquire Twitter much cheaper. Explanations.

Famous 5%

What is Elon Musk playing with Twitter? The billionaire uses a tweet as a weapon. By announcing his $44 billion acquisition, he took two steps back on the networks. He was the first to announce that the sale was “suspended” due to doubts about the number of fake accounts present on the social network. The second, more troubling, stipulated that the transaction could be aborted if there were no guarantees since then.

As a reminder, the boss of Tesla, or even Space X, pressed the pause button to make sure that fake accounts make up far less than 5% of the social network’s 229 million active users. A figure that is actually much lower, according to The newspaper “New York Times. Twitter personally tweeted having ” significant judgment applied ” set the number of fake accounts on your platform to 5% and announce that they “the actual number may be higher than its estimate“.

Either way, the tech giant’s tweets set off an earthquake in the stock market as Twitter’s share price plummeted. The title traded on Monday at $37.4, a far cry from the $54.2 per share that Elon Musk offered in his takeover bid. But really, the whole story could actually be a billionaire ploy to acquire a cheaper social network. How ?

skillful maneuver

Indeed, 2 specific points call into question the billionaire’s maneuver. Primarily, diversity note that 5% of fake accounts have already been listed in Twitter filings with the SEC (Securities and Exchange Commission) since the company went public nine years ago. Thus, Musk should have known about this in advance and asked for confirmation before issuing his purchase offer.

Also, the requested validation method is based on random sample of just 100 accounts, strange.

But in reality this maneuver would consist, firstly, in to derail the sale and then prove that the number of actual “monetizable” users is lower than what Twitter officially says. So the tech mogul could pay less than the original $43 billion to acquire the social network.

From my side, ” Now Wall Street will assume that the deal is about to collapse, or Musk’s attempt to negotiate a lower purchase price. “, – the analyst of investment company Wedbush Securities informs.

3 attachment points

At the top of this maneuver Musk worked out a whole financial package that was profitable for him to secure the sale. Indeed, the billionaire was based on ordinary borrowings from banks and investors, loans secured by Tesla shares, and direct sales of Tesla shares worth up to $21 billion.

Montage created from scratch for Tesla and SpaceX boss by partner banks would create a debt for Twitter that would be very difficult for the company to extricate itself from.

It’s just a poor capital structure for a business like Twitter that has never proven profitable, explains John McClain, portfolio manager at Brandywine Global Investment Management. It was a registered company for a while, and it doesn’t seem to have figured out how to monetize its audience.”

Has the case been installed for the last time?

However, not all so simple. And Musk takes certain risks in the development of this assembly. Indeed, the agreement made between him and Twitter provides for $1 billion fee in case of withdrawal. In addition, the agreement includesspecific performance clause” which would imply that the billionaire is obligated to complete his obligation if his funding plan remained viable, indicates The newspaper “New York Times.

So here’s a deal that looks set to last for a while. We expect more twists and turns as well as more tweets from the billionaire to try and tip the scales in his favor. Stay with us, close. Less subtle, this recent poop emoji addressed the current Twitter boss.