re: Twitter is pursuing legal action to enforce Elon’s merger agreement. LOL

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I’m sure the banks did their due diligence that he had not pledged that Tesla stock elsewhere, but I’m curious to know just how much Tesla Stock he’s pledged.

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While, as cwill points out, he waived due diligence, we all know the banks wouldn’t agree to lend without some assurances.

I really think this whole thing comes down to what they told him (and the banks) in negotiations. I could be wrong, but if I am that means not only Musks attorneys, but the banks attorneys committed malpractice.

I have no clue who fricked up here. Musk and the bank and their attorneys or Twitter and their attorneys. But someone fricked up…allegedly.

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I know you have read the contract. Was getting financing part of it?

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The deal was not contingent on financing, but Twitter was obligated to assist with financing. I think financing was secure and was mostly being covered by a bank loan with musks Tesla atock as collateral.

I’m on my phone…just google it, it’s public as is the proxy statement.

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In what way?

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Financial data.

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Since you are privy to the actual contract; please post a screen shot of it. It will help resolve some of the arguments in this thread. Thank you.

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Dude. Im team Musk and trying to drill down on details, but the contract has been made public. I don’t know if cwill is an attorney, but I suspect he is, because his reading of the contract is pretty strong.

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Why risk it unless you know you’re legit?

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Cause they think they are F’d; and hoping for the right judge?

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He waived due diligence via a vis twitter, but he went and secured outside financing from the too big to fail guys.

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I understand he waived due diligence. That doesn’t mean Twitter isn’t obligated to the bank for whatever they wanted to see. It also doesn’t waive what they represented in negotiations

It’s like when I sign a waiver to go on some bunjee shite at the fair. You can’t waive their negligence. That’s a crude example, but the point remains. Waiving due diligence does some things but it does not waive everything. You know this.

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Financial data.

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Does this include projected revenues from users?

With financing it’s going to probably be 12 to 24 mos trailing and a pro forma but not much more…he’s pledging his rmtesla shares…that’s the collateral that matters to the bank.

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With financing it’s going to probably be 12 to 24 mos trailing and a pro forma but not much more…he’s pledging his rmtesla shares…that’s the collateral that matters to the bank.

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Understood. But you said that Twitter was obligated for certain things to the bank. What were those things? If I misunderstood I apologize.

This Twitter deal is clearly much larger than anything I have ever worked on. But even in a 200MM dollar deal, usually a bank doesn’t allow a single stock to be the collateral for a loan. I know Musk is likely different, but it seems strange to me both Musks attorneys and the banks attorneys would abandon industry norms.