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0 pointsTillE3y ago0 comments

It's not like there's another buyer out there offering $44 billion. Twitter has no reason to settle, unless maybe the stock price goes way up.

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refurb3y ago

It’s like a divorce. You can either reach a settlement or spend a ton of money fighting for years.

You imagine how distracting it would be for Twitter to have this in their quarterly updates? They certainly aren’t selling the company until it’s resolved.

My prediction - lots of public tough talk, then a quiet resolution.

jogjayr3y ago

> spend a ton of money fighting for years

Twitter is worth $28b and Musk's offer was $44b - a $16bn delta. The most annual revenue that a single law firm in the US has made is about $4bn.[1]

Any amount Twitter could spend on lawyers is nothing compared to what they stand to make by winning.

If you're accounting for whatever "toll" it takes on the company's leadership and employee morale, $16bn is about 2.75 years of operating expenses. Even if you assume every employee is operating at 50% mental capacity the entire time, it still makes sense to fight as long as it's over in <= 5 years.

1. https://en.wikipedia.org/wiki/List_of_largest_law_firms_by_r...

CogitoCogito3y ago

> It’s like a divorce. You can either reach a settlement or spend a ton of money fighting for years.

There's basically no way they could possibly spend even a tiny fraction of the overall deal's worth fighting this even if it went on for years. Not spending that money to fight this would really be stupid.

jacquesm3y ago

And would open up many other lawsuits from minority shareholders that would love to see this deal go through at the price that Musk offered. They're between a rock and a hard place and I think that that is the thing that pretty much guarantees that they will take it all the way to the last appeal to get it enforced. They can't afford not to.

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