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Culture War Roundup for the week of November 14, 2022

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At the time of the original offer I remember there being lots of thinking that this is a brilliant masterplan on the part of Musk on /r/themotte (for the record I was skeptical). That we're into what very much looks like an implosion of Twitter's operations and people are still convinced this is some 1000 iq maneuvering makes me think Musk's cult of personality has a stronger grip around here than I figured. Previously I figured from experience that the typical "Musk-bro" was more a finance type.

Of course there remains an outside shot it gets all turned around, and that the problems with Twitter here are very minor and being blown out of proportion by people who are hostile to Musk and the takeover. But I think there's a good amount of fire behind this smoke.

The man waived his right to due diligence, then started publicly griping about stuff a prospective buy-side would review… during due diligence. Dog that caught the car, on this one.

and then fired the c-suite on the first day for cause

these sorts of things are common in acquisitions

this is all part of the dance, just like his bucking in the chancery court to get Twitter to make statements in response

I used to work M&A. No, waiving due diligence is the opposite of common. There are multiple SaaS providers that offer VDRs for due diligence because exceedingly rare is the transaction that exempts it.

Waiving due diligence then stating conditions within a target company pose enough of a concern you might not want to complete your transaction doesn’t work. The target can hammer you in court. Musk completed the purchase, predictably, just before the judge’s imposed deadline of heading to trial.

Twitter’s board had a responsibility to maximize shareholder value, not make blue checks happy after the sale. Musk was on the hook to (1) pay over the market share price to take Twitter private, or (2) pay Twitter a huge sum in penalties for not completing the deal. At that point, Musk had no leverage over Twitter’s board because either outcome was a win for shareholders.

Yeah, which firm?

I didn't write waiving due diligence is common, I wrote "these sorts of things," i.e., publicly whining, threatening to go to court, going to court, and all other such things because each of them can have a benefit/cost to either party.

edit: wow you made a bunch of edits after I responded

which actions?

public comments? legal threats? court?

we're not talking about post acquisition, but the process of acquisition