What Happens to Twitter if Elon Musk Walks Away?

admin July 12, 2022

0 6 minutes read

The turmoil left

Twitter’s share plummeted by more than 11% yesterday, making it one of the lowest since 2020. Investors worried whether Elon Musk could successfully withdraw from the $ 44 billion acquisition of social media company.Wakutel’s Twitter lawyer Mask’s lawyer His efforts to withdraw the contract were “invalid,” and he described the contract as “intentionally, intentionally, and substantially in breach.” Whether that is the case is likely to be resolved in Delaware, where Twitter is expected to file a proceeding soon this week.

But there is one thing for sure. Musk wrote to Times Kate Conger and Mike Isaac that he was in a worse state than when he said he would buy Twitter. The reasons are as follows:

Musk has revealed the company’s declining financial and business outlook. Twitter has been in the red for seven of its nine years as a publicly traded company. It didn’t accept a rival’s offer while Musk was trying to buy it. The board decided that the $ 54.20 per share offer for Mask was the best available and suggested that there was no way to reach that price on its own.

And since Twitter accepted Mask’s offer, the stock has lost more than one-third of its value. In contrast, the tech-intensive Nasdaq index fell about 12.5% over the same period.

The situation on Twitter got worse after Musk signed the deal. Twitter CEO Parag Agrawal told employees in May that the company was unable to meet its business and financial goals. He pushed the head of products and profits and began to slow down employment. As long as transaction uncertainty offends Twitter’s main source of revenue, advertisers, it’s unlikely that the company’s trajectory will change. According to the company and six former employees, employee morale has declined within the company, leading to disagreements and turnover.

“His involvement with Twitter has hit the company seriously,” said Jason Goldman, a member of Twitter’s founding team and board of directors.

Musk offended his 100 million followers against the company. While his meme was targeting Twitter, he made a fuss about the product, saying it wasn’t as attractive as other apps. His thorns about fake accounts are weakening confidence in the company, as well as preparing to soften the heated debate about the upcoming elections in Brazil and the US midterm elections this fall. In May, Musk said on Twitter that he would “withdraw the permanent ban” from former President Donald J. Trump and invigorate right-wing users who have long accused the company of terminating.

What’s happening

The Justice Department is investigating whether the PGA Tour violates antitrust laws When it fought against its new rival, LIV Golf. Player agent received an inquiry about Actions on the PGA Tour over the last few weeks.. Greg Norman, CEO of LIV Golf, whose largest shareholder is Saudi Arabia’s sovereign wealth fund, said the PGA Tour is trying to maintain an “illegal monopoly.” The PGA Tour denies cheating.

Heathrow Airport in London is asking airlines to stop selling summer tickets. of Open letter to passengersHeathrow Airport CEO John Holland Kay said the airport will introduce capacity caps from today to September 11. Due to a shortage of staff, the ability to handle airport vacationers has declined.

Gap CEO Sonia Syngal has left the struggling retailer. Former Wal-Mart executive Bob Martin served as interim CEO and Increase sales in the gap and turn the problem around in Old Navy.. Gap is one of the chains that has been plagued by overstock as consumer spending has shifted to leisure activities such as restaurants and travel over the past year.

Bill Ackman’s SPAC will return $ 4 billion to investors after failing to complete a transaction. Two years after establishing the largest special acquisition company (SPAC) in history, Acman concluded that he could not make a deal. In a letter to shareholders yesterday, Acman said that given the recent market conditions, many “high quality and profitable” companies are no longer interested in going public.

Peloton will stop producing its bicycles. The company that was once a darling of training in a pandemic home today I was working with Taiwanese manufacturer Lexon As part of a bid to reduce costs and simplify operations. This move will make it easier for companies to increase or decrease according to demand.

Is the Fed pushing up rent?

The Federal Reserve’s efforts to curb inflation by raising interest rates significantly are changing housing calculations rapidly. As the cost of borrowing for homebuyers rises, more and more people are forgetting their dream of owning a home, further pushing up rental prices that have risen since the beginning of the pandemic. As a result, residential real estate companies are struggling.Online real estate service Redfin has a home purchase transaction Fall fastAnd an analyst downgraded his valuation of the company’s stock.

Rent may continue to rise for some time. New lease price increased by 14.1% According to the listing service apartment list, one year until June. This is slightly less than the overall 17.5% increase in 2021, but is still an unusually fast pace compared to the usual 2-3% increase per year before the pandemic, Times Jeanna Smialek and Conor Dougherty report. doing. Nicole Bachaud, an economist at the housing website Zillow, said: “Rent pressure continues to be seen. How much should it be?”

The pandemic has accelerated the housing trend for a long time in development. Over the years, the United States has failed to build apartments at a pace that meets growing demand, while large millennial generations are aging. And while affordable housing is really lacking, supply in current work may not meet your needs as new developments are biased towards luxury buildings. As borrowing costs rise, Construction of a new house It fell sharply. It fell 14.4% in May, the lowest level in over a year. Data suggests The construction of the apartment has also been hit.

The person who becomes the buyer thinks twice. According to Redfin, about 60,000 home purchase contracts were signed nationwide in June, the highest rate since the pandemic began in March and April 2020, accounting for nearly 15% of contracted homes. Redfin economist Taylor Marr said the slowdown in competition has increased buyers’ tendency to act in response to contingencies that they may have previously abandoned in a hurry. .. “It gives them the flexibility to stop trading.”

“There is no excuse for how the company played people’s lives.”

— — Former Uber top lobbyist Mark McGann Became a whistleblowerHelped the company win over government officials in Europe, Africa and the Middle East, and Now the company says it deliberately ignored the law And it misleads drivers and others about the benefits of the company’s gig economy model. Uber says MacGann, who left the company in 2016, doesn’t know exactly how the company is behaving today.

Is there a crypto ethics issue in Washington?

Washington lawmakers are competing to write new rules to regulate cryptography. Missing one: rules to cover their own actions. The Recent Office of Government Ethics Cryptographic regulators and other government officials have issued new guidance that they should not be involved in policymaking with respect to their digital assets, even if they have minimal holdings. However, questions about legislators’ conflicts of interest regarding cryptocurrencies are unlikely to be resolved immediately.

Parliamentarians, unlike other lawmakers in the government, do not face the restrictions of crypto trading..And it includes some of those proposing cryptography — like Patrick Toomy of Pennsylvania, a top Republican member of the Senate Banking Commission, reported. Cryptographic possession.. OGE’s guidance reflects the understanding that there should be some distance between the personal property of civil servants and the policies they form. That same instinct is intensifying the move to limit the stock trading capacity of lawmakers.

There is increasing pressure to ban lawmakers from trading individual stocks. Thanks to the 2012 STOCK Act, they already have to disclose their transactions, but there is growing support for suspension of transactions during their tenure.Speaker of the House Nancy Pelosi initially resisted trading restrictions, and her husband Paul Pelosi Active traderHas entrusted Zoe Lofgren, California, chairman of the House Administration Committee, to create new rules. Lofgren held a hearing in April, with bills sponsored by both Democrats and Republicans in circulation. However, there is no deadline for action and no clear solution is visible.

Progress in a broader trade review seems to be at a standstill. A spokesman for Georgia’s Democratic senator John Osov, who proposed a total ban on equity trading, just said, “the debate continues,” including what types of investment could be restricted. This suggests that holding cryptocurrencies could get a pass, even if Congress’s trading ban progresses.

Regarding Toomey, a senator spokeswoman added to the DealBook that he opposed a complete ban on the senator’s investment and that there were no disputes arising from crypto investment. “Should a member’s spouse be barred from buying green bonds if a husband or wife votes to fight climate change?” A spokeswoman asked. “Should veterans serving in Congress be prohibited from speaking under the policy of the Department of Veterans Affairs?”