Oh, hey, patrick, i didn't see you, how are you doing so? Why do you hate elon so much? You know people got so angry about that video and, in all honesty i just thought it was funny. You know the thing i get all of these like a few weeks ago. I did a video. What was it about again? It was, it was something to do with um.

Oh it was that other one about the taxes. You know, i said to you, like you, can't do something on taxes, yeah, and so i had a video where i kind of said you know elon musk, he found he starts up all of these companies. You know so you get ten thousand emails, that people say and you know elon didn't found anything. You know he he turned up afterwards.

You know so that i thought it was funny. I was like you know what i'll do is i'll make the founder of the shampoo, the inventor of the autonomous vacuum cleaner. You know some of the really funny ones um, which i wish i could think of. Like some there's, like the comment section on that video, it's just filled with kind of hilarious um.

You know sort of riffs on that team cedric. I think your software glitched. Oh no, your brain, i mean you just stop mid-sentence, okay, so hold on a second uh. So you know how i titled this video.

I i'm sure you haven't seen it yet. No! No interviewing tesla and elon musk hater, patrick boyle. I thought you get a kick out of the title if there's one take away from it, it's like you know when people say that twitter is a cesspool, you know you say something negative about elon. You suddenly see the cesspool.

You know you've got like ten thousand people tweeting at you, you know wow. So if someone says tom tom looks faded, my guy, you spent three days with kids in the trailer. Let's see how you do so, i went look so here's the crazy part. So we went on a two-day uh, camper kind of uh thing just for the for the experience it was us and another couple, and both of us and our kids have never done this trailer thing ever ever ever yeah and uh.

It's not what we thought it would be. Whenever i see people they're like. Oh, it's amazing going camping, i'm like i just like having a toilet in the shower on holidays. All i'm gon na say is that there's imagine i mean i didn't consider the fact that there's no sewage and uh yeah - i just told him, that's all i'm gon na say about it.

I'm not gon na i'm, not gon na elaborate any further. So, yes, i look faded, probably the reason i spent two days trying to shower standing on the toilet seat for something that dribbles over my head. Is it like a little a little gnome inside with this straw? Trying to shower me yeah, i mean, if you think about it. Our whole human history has been trying to get away from that and it's not a holiday to return to yeah.

So i think it's safe to say we will not be um. Returning to this experience, i said to my buddy, the one we were doing the vacation with. I was like this feels a lot like the dentist. I pay a lot of money to suffer.

Did the kids have fun or not yeah, they loved it? They absolutely loved it. So when we were there, so the the lady who rented out the campers to us she's like do you want to you, want, like a last minute, deal just get it for another day and like we bought. We were also like. No, no! No, we didn't even ask the price like extra if we can check out right now, so my youngest son who's kind of more entrepreneurial in his four while we were driving home, he was like how much money did we make of this i mean, i said what Do you mean how much did they pay us, so he thought we were getting paid to be there? Well now, did you i i think i saw some of your holiday photos online.

Like was that you, you brought your pickup truck with your your grandfather in the cage in the back right. You saw the cage right, yeah, it's it's court-ordered. He cannot be outside without the cage he has to be muzzled inside a cage. Otherwise, it's it's basically breach of fiduciary duty.

Yeah, you've moved towards plastic vodka bottles as well. I say anyways, so, let's, let's get it serious a little bit here. I want to give a few shout outs before we go through. Why you're such a hater and you know a piece of um, i'm just kidding we have daniel here he wants to pay you to hang out with you on your only fans and he's actually one of my members uh he's a smart guy.

What do you have and he's here tom? What do you have to do rich is here as well. We have the guy from uh the backstreet boys nick carter is here. Is that grandpa no luluminator is here. So all the ogs are here.

Let's get this started. So um, while i have you here and now we're done with the - why why i look so the way i look so basically um, okay, i'll tell you one more story before i go so when, when you're, no i'm not gon na. Do this? No! Maybe later, though, okay, okay, so we went on this uh part of our experience, was we went on this uh? We rented these uh four by fours, the crazy ones you know with the ones that look like uh, the razer ones. You know what i'm talking about.

Oh, the tesla truck thing: yeah i've seen it the cyber truck, it's anyways, so you a lot of people, don't know this, but elon musk actually invaded those things, the razors and the among other things and the flywheel fishing so anyways. So that was a lot of fun eh but hey. Let's, let's go back on subject so you made a hilarious video. I absolutely loved it uh! I i don't.

I don't think that a lot of people understand that there was a certain element of humorism to this, because whenever you, whenever you tackle these topics, you're bound to i mean how many, how much hate did you get for this video? Oh, it's hilarious like it's um, but it's always the same comments. You know it's like you should take this video down unsubscribed. You know it's like. Oh no, it's kind of i i don't know like it's.

It's very interesting, like you know, if you made like a video about jeff bezos or something like that and poked a bit of fun at him, like which i have every time i i talk about jeff bezos, i put that photo of him up eating a lizard. You know because to me that's the only photo like that should ever be used of jeff bezos, but no one gets upset, but there's kind of it seems the eevee people they don't like, because the the only other time i got in trouble like that was i Don't even remember the name of the company, but it was one of those ev companies um. I i can't even remember the name of it. So again i mean i love elon musk, you.

You obviously hate him because he has hair and you don't. I think we can settle this in all honesty, i'm trying to get elon to tell me where he bought that wig. You know, because it's a very good one, so andre is saying two two funniest people on finance youtube. So i got ta be honest with you.

Whenever i what i watch this video and people watch it for finance, and i was like i was. I was just basically saying. Oh this is such a good joke. Why didn't i think about it? Why didn't like the whole, like ellen the inventor kind of gag that you kept on running with it? I look at it like an animator, looks at the animation.

You know what i mean. I look the brilliance of the of the joke. So let's talk serious here for a second, so the premise of your video when you, when you get to the serious part of it um and i understand the jokes - was a brilliant way to segue into the actual boring stuff. So you think so before i ask so you think he cannot afford it's, not that.

I think i think it's just a bad deal. You know. Firstly, i think the whole thing is goofy, like i think in all you know, i mean, let me rephrase the field. You think he cannot afford it without selling significant amount of tesla stock.

Well, if you look at you know, the financing package came out the other day uh. What was it yes yesterday, right yesterday and in the financing package, i think there can you explain what the financing package for the 600? Oh okay, so one of the things and and one of the main reasons that, if you think about it normally when a merger or a buyout is announced the price of the stock pops to pretty close to the price of the deal and a lot of that. It doesn't go we'll say if we'll we'll go with round numbers, we'll say if the deal was offered a hundred dollars. A share you'd expect the shares to jump to maybe like 98.99 a share now the reason they don't go to a hundred dollars.

A share is there's kind of two reasons. One is just the time value of money that you know a dollar in six months. Time isn't the same as a dollar today. The other reason is deal break risk right like because there's always a chance that the deal doesn't go through, and so, when you see it's kind of a funny thing when this deal was announced like when he bought his 10, the shares popped.

Then, when he said he was gon na buy the whole company, it fell about two percent, you know which never happens, and it's just that the market kind of views. This is a bit of a prank, you know, and why does the market view it that way? Well, the the thing is actually: if we just get to the finance package, it kind of tells you a lot um, so there's sort of three parts to the financing package that he submitted yesterday. The first part is um is, i think, a 13 billion dollar loan from a whole bunch of banks, and basically that comes through at i think it's like sofa, plus four percent, so far is kind of the new libor right, it's a floating rate um. So so that's 13 billion at that price, uh and that would be lent to twitter, okay, um.

The second part is 12 and a half being lent directly to elon and it's a margin loan. Basically, where he puts up, i think it's 62 and a half billion dollars worth of tesla stock in order to borrow 12 and a half billion dollars in cash right to do this deal, and then we finally got that he basically, the third part of the package Is that elon wrote a letter to elon saying that he would put up? I think 21 billion, okay and, and that part is sort of a part. That's maybe the loosest part, because in truth he would probably get like uh kind of he'd, probably find a private equity fund, or something like that to at least put up part of that. But it should he make another silver lake might do it.

They said silverlake. Might do it or thomas yeah there's a few, but you know these guys also they they well, let's think through it a bit more so so, when we've got this right like last year, i think ebitda from uh from twitter was around 620 million or something like That, like i'm kind of remembering these numbers, i'm not sure the carry on the first loan. The loan to twitter itself is about a billion dollars a year. Okay, now that's pretty tight! Now, if you look at analyst analyst expectations, they're sort of putting forth that twitter might make a billion and a half next year, and maybe two billion a year afterwards, so in a way twitter could sustain that uh.

You know that level of leverage, but it is tight. Okay and it gets tighter when you look at what elon is saying where he wants to reduce advertising on twitter and things like that. So if at the moment, they're making 620 million and he reduces advertising - and it has a billion of carry it's getting a bit tight - then he's got this margin loan and if you think about like a lot of people, kind of go, oh well he's worth. What's he worth uh 260 billion or something like that? They go.

Oh, he can float this, but the thing is that no one will um no one's gon na lend you like a dollar for a dollar's worth of stock and, in particular, a very volatile holiday like tesla right so they're gon na he has to put up. I think 62 and a half in order to get 12 and a half right now. The problem with that is that, if the price of uh, if the price of tesla falls by much - and i forget - i did i kind of have an audio podcast that i put this up on yesterday, i had the exact calculation, but i forget somewhere we'll say, Like 55, wait what what is tesla trading at right now, sorry, a thousand okay. So if it falls too sorry, i have to look up the price actually in in my uh video comments.

Yesterday, all of these people go he's, definitely short tesla and it's like. Don't even know the stock price, but anyhow, let's look at this, so i believe they don't know you have an advocacy against shorting stock as rule no, i it makes no sense but um yeah. I think if it falls, i forget i put the number in my podcast, but it's like 530 a share or something like that um. He would get a margin call and at that point either the banks would start dumping his tesla stock or he would have to come up with cash and he'd be having to come up with cash.

At a time that you know his uh, his assets are falling in value, which is a bit tough, and so the real question is like. Why would he want to do this deal because everyone, if you look at a lot of uh like people talking about this deal, they're like well, he definitely wants to do it so he'll get it done and it's like. Firstly, does he really want to get it done, or is this a bit of an elaborate prank? You know, because what do you get out of this you get like uh, you know the truth is like the the overall cost of twitter. He could build his own social media company.

You know for significantly less it's a website right it. It makes no sense if you think about he owns 10 percent already they'd give him a seat on the board, they'd, listen to what he has to say. If he wants them to put all of his tweets in a bold printer to make the home page of tesla the elon musk tweet feed, he could talk them into it at this point right. He doesn't need to buy it, but do you think that i mean i think, like i can push back here a little bit in the sense that building a brand new platform would have to you'd have to create network effects of massive scale.

It's going to be yeah years a year. The thing is you still you're, really paying up for this and you're, putting your other core businesses at risk, and even you know like if you're a tesla stockholder. You don't want this right, because if he pledges a bunch of his stock right and it falls to the kind of level that it was at a year ago, suddenly he is possibly dumping stock. In order to, in order to to be able to stay in this position, it puts tesla at risk and it doesn't make sense like why would you want to put your position in tesla at risk to own a website like that? That makes 600 and something million a year.

Somebody is giving an example here of true social, which is a very good. I mean another very strong case. Like look he's, i think his logic is patrick he's saying i can build something like this with my own clout. I think that's going to be by the way it might be.

I have a different theory. What plan b is i'll? Tell you in a second but um, so i can't build something like this: it's probably going to cost somewhere in the realm of a couple. Tens of billions of dollars to get it done, it's gon na take years, probably five years of work and he's like he's like a kid. I want it now, but the change is he wants it now, like he's not really going to sit there and sort of write the code on twitter right, he doesn't need to do what he wants.

He could get just through negotiation like they were listening. No, but clearly no look, look at what happened with the board seat. No, i think he was offered a board seat and he walked away under which conditions like look. You know this for a fact like when you get an offer, it doesn't always like depends on.

Like sometimes you offer somebody something like look this, the strings that came with that offer was really strange to be honest, like they i'm not even talking about the background check but like the fact like they said okay, so you will give you a seat on the Board, but you can't go above 15, it means like, if you they fear him in a sense. Yes, and no like even you know the the other thing that's worth saying, because everyone there's, i don't know, there's uh a few people kind of saying that uh that it's in breach of their fiduciary duty to shareholders. That's just not true. Like that's that's inaccurate.

You know they're not breaching their fiduciary duty and in fact they could make a decent argument that they're defending shareholders, because the way he bought his 10 stake. You know he was supposed to disclose at five percent and he basically waited an extra day or ten days more more than we talked about this offline. You gave me the idea saved himself about a hundred and fifty hundred seventy costly shareholders, 150 million. So to say to a guy who's done that like which is against the law um, that we're gon na kind of ask you to slow down on on your purchases or whatever.

It's not so mad because if, if you look at even why, like a lot of this takeover law exists, you know a lot of it is that you know this stuff all came in in the 1980s, due to kind of corporate raider type stuff, and the kind Of thing that, because poison pills, firstly, are largely considered bad corporate governance right, no one really likes them, and when you look at it it seems unfair and you might ask well how did this get through the courts, because it's of course been litigated. You know 30. 40 years ago, how did it get through? Well, there was sort of a history of corporate raiders, basically people who would come in and buy a big enough stake right. If you, if you can get 51 of the shares of a company back in the 1980s, you could then basically replace the board of directors with your own board of directors.

And then you could negotiate a merger at like 20 bucks a share, and once the directors approve it, it goes through right, and so all of those share shareholders gets stuffed with you know they call it a two-tier tender offer and the reason poison pills are allowed By the law is to prevent things like that, and so it's not crazy for the board of directors to kind of say you need to be a bit more clear about what you're up to, because in truth, if, if you do want to buy all of the Shares, there's kind of a correct way of doing that. You know where you, where you make an offer uh you know to all of the shareholders that all of them can accept or decline. You know but, but you know, if you, if you, if you kind of just grow your position and that then have control and can do what you want, that doesn't sort of guarantee safety to the minority shareholders that are left well. I don't think that by definition i mean i, i don't think anybody argued well.

Of course they will i'll change the way i phrase it. There will be some people who would argue that the board should automatically accept an offer. That's significantly higher than the current trading price of the stock, which is obviously i think, most intelligent people. Don't say that yeah! That's not the definition of fiduciary duty fiduciary has to look at the in what's in the best interest of the company right yeah and that's a very fluid definition.

I mean it's a very fluid definition and well, it's even reasonable, like the fact that they sort of hit a pause button by putting this poison pill in it might give them a week or two to try and scare up an additional uh bidder. You know, and - and that's reasonable to do like i'll - tell you in a second, why i think, there's not going to be any more bitters. That's the other thing is um. Is that basically the fact that the price hasn't popped? It really means people don't believe this deal will be done.

I think the problem isn't the deal patrick, so the problem is the company is, and nobody in his right mind would want to buy it. Well, that that's the whole issue and actually it's worth pointing out that just in general, like i did a study years ago on m a, i wrote, a book on m a and had to do a bunch of analysis on it, and one of the things is Um, i love how you say it. I think so i wrote a book so i had to like do a bunch of analysis. They make you work yeah, they make you do it if you write a book so um, but you know when you uh.

What was i talking about there uh? Well, you think i'll just say thank you for john sullivan for the 10 vodka donation. I really appreciate it and patrick will get that's 30 seconds of grandpa's. We'll do five dollars me five dollars for patrick for a for com, which is which was by the way, incidentally, invented by elon musk elon musk invented the comb, and someone pointed out in the comment section of my video - and i didn't even know this. He was the first man to drink, cow's milk, which i didn't know: okay, so let's, let's so, okay, so uh.

So i'll tell you what i think. So when i obviously you know, i have a. I have a legal background. I also was a veterinarian.

A bus driver, a electric operator and a paratrooper, so in my many many backgrounds i'm just kidding, but i do have legal the background so understand fiduciary duty. Well, i look at this from and i think that they are in breach of their fiduciary duty, but not because of objectively just the price. So i i would say at least that there's a case to be made that they should take the offer and i'll explain why so the basically, if you look at this and jack dorsey, agrees with this position as well, and he's been publicly open about this, he Tweeted, i don't know if you know this, i'm sure you've seen it. He tweeted, basically that the board was essentially dysfunctional throughout his tenure before he decided to leave so anyways.

So i look at one thing: i look at the board and the board is uh. Basically, the guys who are running the company now with jack leaving and for the for a while he's, basically been you know in absentee. Well, the boards don't really run a company. The board represents shareholders, but management run a company right.

That's true, but the in this situation, when you have a a very uh absent like jax tenure, was very um. I guess he he grew tired of it and he basically didn't give a for a while, and now they have a new ceo which, when you have a new ceo there's, always this power struggle between who who calls the real shots. Is this the chairman or the ceo, and in the sense you have this very institutionally dominated stock, where a lot of them kind of defer to the board? So i think in twitter's case, the board of directors has to do more with how the company is being managed in the company like like tesla, for example, where there's like higher retail participation and and more um dominant ceo. So but that's just my my kind of two sense about it, but i look at it from one perspective.

I look at it and i say: okay, so um twitter has been around for eight years right. So it's longer than that 2013. They went public, oh public, but they've been around since what like, probably 08, 009 okay, so since they went public they they did based on this chart like what sixteen percent in eight years. So, in the same eight years that they've been public uh, you can pull up the chart for facebook, which has very similar date when they, i think they went public one year before yeah and you go max, they did 382 and facebook is trash.

The way they facebook is kind of everybody jokes about how facebook is flat for this, like they can, i'm not even talking about companies that google and, like the so 16 in in eight years, seems to me like this. They haven't figured it out. So this is a company that has a lot of reach. They don't have any competitors their like.

I guess social presence is uh, is kind of uh unrivaled as far as short form text, and yet they can't monetize. They can't make any money off it. For various reasons, and here's a guy who's kind of is is even though he is acting like a 15 year old, and i love that about him. You hate it, and it's fine, but, like he's been he's been very good at monetizing that people would in suits in banks would tell them it's not monetizable like a space rocket company like or an electric vehicle company.

Let's say when he started it. It's really stupid investments, if you think about it. If i give you 200 million or whatever he got out of paypal right, i mean putting it in the space company as a rocket company and and then borrowing some more to invest in an electric company which you then claim you're founder of i'm just kidding. I don't don't hate me elon fans, but i mean uh he's tom hayes, keyland secretly.

I don't hate zlatan yeah. Well, he had a long round. All i'm saying is like he has. He has a track record of being able to monetize the are the things that people thought are not monetizable and he and i think what he sees here is basically hey.

If, if i basically and i i'm not going to repeat your joke, because i can't do it, i can't get away with it like you, but all i'm saying i think he says hey if we let this thing loose and let the platform basically run itself like A reddit style where everybody just say whatever the they want. I think we can make money of it because i think we're gon na have much more ability to bring people on and monetize. I don't know how, but i think he has you know it's an interesting thing because on you know largely i i don't really think much of twitter as a you know, it's interesting actually, a few. Are you active on twitter with a friend pardon? Are you active on twitter, i'm on twitter yeah, but i i don't really like it as a thing like i kind of tweet when i have a new video or something like that or retweet sort of funny things, but i i don't really do much on it, But um the you know it's it's interesting.

A few weeks ago i was talking with a friend of mine who owns uh a business that does a lot of online advertising, like i think he told me spends like a million a year on advertising right. This is like retail, like it's, it's a big store that he owns and um. He told me that, basically, he just sends it all to google. Like he's tried, twitter he's tried.

Facebook, they don't work like google is. The is the platform, if you, if you want to actually sell stuff, um google ads work, and he said - and you know he kind of said actually twitter was the worst and it's funny because when i'm even on twitter, like all well, a bad thing is all Of the sort of advertising that reaches me, i find annoying, so i blocked them all. I just kind of like nah. Don't don't advertise that to me and so now, like the only things i get are those sort of clickbait adverts.

You know where it's like. You won't believe what britney spears just did and it's like yeah. No, i i i can't tell you how one is done. You click on that, but you know it's kind of they have like the lowest quality advertising like those sort of gadgets like this is a flashlight that will uh.

You know that will light up the entire moon. You know okay yeah, i believe, but you think it's. It's a good bet to to say he's not going to be able to make money off of this. I think well he's hard to bet against him.

He even doesn't view it as a financial thing like he. He said that that's the key to making money financial goals, you think he invested in spacex and tesla because they thought it's a financial business. I think i think tesla, i don't know you, you don't make. You don't.

Invest. Spacex possibly looks like a bit of a hobby business uh, the boring company. I don't know what to tell you about that and then um you know tesla is i mean you wouldn't start building and selling cars without the idea that you could sell them for more than it costs to build them right, like he wasn't doing it as a You know a charitable uh thing, but i just think that he well. He sees that there's a there's something lacking and i feel it as well.

I mean i think, you'd agree that there's a corporate censorship has gotten worse. We've always had corporate citizenship. You know, but it's a very interesting thing, though, because why does that happen? And the answer is, quite simply, it's kind of, like i don't know, like kind of, was it five or ten years ago with youtube they had did they call like ad mcgregor? Basically, i think people were putting up videos of beheadings and then it would skip. No.

It was the i remember what happened apocalypse, that's what they call it yeah and they would they had the robert craft, commercial on some nazi video and he went berserk and then, like everybody, pulled their money out of youtube, yeah, yeah and - and so when you think About it, like almost free speech, combined with um, you know, advertising content is always a struggle right like because even on youtube like if you they'll, let you put up controversial stuff, but you will be demonetized, you know and that, of course, that disincentivizes you to put Up uh, you know this content, you know so it's kind, it's it's. Basically, i i'm not sure that social media even can be like there's this sort of concept of the town square, i'm not sure that it can be like unless it becomes like a charitable organization. Like a wikipedia type thing like where it's just sort of there to be used and not being monetized, but as soon as you charge for advertising, the advertisers get to say what their ad gets placed next to right. So you think that his offer to buy twitter is just out of boredom and he doesn't really want to do it.

I i don't, i think, if he did it, it would be a mistake like i think he would just be burning his money. I think he would probably be wasting his time. You know he's also like, even if you, even if we skip by the fact that he has ten percent of the company, which is very meaningful not into not in the company where you have like 80 institutions. People on the platform, like you know why, like if he stepped away from from even tweeting like not not stepped away from his investment, but if he stopped tweeting it would be destructive to the company.

You know like it's uh. They have to listen to him. You know like they can't not, it wouldn't make sense. But if that's the case, look i here's my problem in any.

I made a video about this and i said in any other company. A 20 stake is basically all you own it. You get to call all the shots: the public company yeah, not in a company like twitter, so and jack dorsey - alluded to it in the streets everybody's being held hostage by this board, because the pension funds and the mutual funds they don't give a and they just Defer to the board, and then they we're they're in this prison people who own no shares of the company are basically uh making the decisions for the ones that actually have a financial interest in it. I i still think they could do that because if you look at many companies like well actually there's even a few interesting things like.

If many companies have boards who are just paid to be board members and they do their job, which is to represent the shareholders and make sure that management are not abusing their position like that's the job of the board, they don't run the company. They basically management have to answer to them and they they represent the shareholders. That's what they do now wait is this. Is this how you define the board just as a supervisor? Yes, that's all they do like.

You would not agree with me that the board is responsible for for determining the strategy on behalf of the shareholders. No, no, they have to consider it right. So, for example, when an offer like this comes in the board will have to listen to what elon musk has to say and by the way, until he sort of um really firms up the deal which he might do in the next few weeks. I think he shouldn't, but he might um, then they have to seriously consider that, but they also have to seriously consider what management say and if management say look, we've got this amazing turnaround strategy.

It's going to be great, this will happen, that'll happen and they they essentially have to say which of these things will be best for the shareholders. Like does uh 54.20 work or does a really good turnaround plan turn it into a hundred dollar stock, and if they think that the turnaround plan is good enough, they are required to go with that and if they think it's not good enough, they have to pick The buyout offer, but but that's kind of their role - is just to represent the interests of all shareholders, but isn't the interest of the shareholder for the management to do their job and find a way to monetize the platform. Well, you know yes, but but if i'm a shareholder of twitter from 2013, i'm pissed, but there's a lot of companies that are sideways since then you know, if you look at you know it's with this amount of presence, with this amount of pr like they're, a Staple when you say facebook, instagram, uh, twitter, like they're, a staple they're, so heavy like and yet they're so underperformed like it's, not a platform, you know what i mean. It's very you know it's a very interesting thing, though, because it's not even obvious to me.

I find it funny because i know why you'd be on twitter if you had like a thing to promote or whatever, but it's not really that obvious to me like why a regular person would want to be on twitter like why. Why do you want to? You know you look at the average twitter account and it's sort of someone with you know i i bet the average twitter account probably is less than 25 followers right. What you're shouting into the void? There's no point to this like it's most, people are not really tweeting they're. Just reading like you get on twitter, you see what's going on it's like reddit, but with like shorter content, you get on there in five minutes.

You know exactly if something happened, if will smith slap somebody if donald trump said something like so within five minutes, you see the trending tab, you see exactly what's going on blah blah blah boom boom boom. Ten minutes you're out, you know exactly what's going on right now in your sphere of interest, so that kind of so they don't really tweet. But here's. My problem, patrick and i've, said this to justin when we had our debate on our show uh.

Basically, when youtube censors uh creators because of financial reasons such as demonetizing or even big platforming, because they're fearful from an apocalypse, nobody says nothing about it. You notice how this hasn't been like a social movement against youtube, censoring, because they're saying hey it's advertisers. We can't afford you guys to say stupid, so that's it when twitter does it it's like you guys, are not making money anyways. Well, that's the thing is that is that youtube pay people to be on the platform while you're not paid to be on twitter.

So you could be like the biggest person on the platform. You don't make any money. Why do you even care like it's just so? No, but this is not the question. The question is, why are they so you have to so? The the question for me is like: why is twitter, so proactive or paternalistic or or activist, in the way they moderate content, if they don't have like nobody advertises on twitter bro, you can see by the financials.

So so why then? Well, it's interesting, though, because the it becomes you've got to imagine that if you're sitting in that seat, you're getting sort of heat from both sides like a good example, actually would be the spotify thing with um joe rogan and and neil young right and you're kind Of getting hit from both sides, you know where you kind of say: look. We agreed to put joe rogan up, he can say what he wants and then people notice that there's a few of the controversial ones that have gone missing and then then other people start saying like. Oh you, you need to get rid of him or you are. I'm coming down, and it's you know i don't know like running one of those websites must be like being a babysitter.

You know what i mean like it's just constantly like, like you're, you're kind of not doing enough or you're doing too much like, even if you think about um. You know they're now in europe, passing a bunch of laws that will make it the whole beauty of these digital businesses and the reason they do so well in a way is that you can hire like 100 people and put out this scalable thing. Where you know, someone else makes the content and it you know you, you monetize it and it seems great, but it becomes a disaster. If you have to moderate it like the reason facebook is sort of such a you know, dumpster fire is that they don't want to moderate this stuff, because it's expensive and and frankly, just there's a fire hose of data coming on to the website daily.

And so it's close to impossible, but on top of that um you know every decision, you i'll give you a good example. Actually, because there's a a little while ago, you know in the comments section of uh of your videos here on youtube right. I imagine the miniature video was released about an hour later. It's filled with fake tom nash is saying contact me on whatsapp right.

Oh yeah, i've eliminated it by the way i hired somebody. I hired a company that gives like uh that hasn't the ai that deletes them yeah. Well, i was about to say this: i have a piece of software they'll pull all of that stuff down and it's great. I love it.

Firstly, uh youtube should provide that themselves, but they don't agree, but anyhow, piece of software, and i love it. You just hit the button and they're all gone, but the problem is that: how does that software work? It's it's an ai. It looks for things like phone numbers, unusual characters. You know those sort of fingers pointing up at a whatsapp number and whatever right.

When i look at the the deleted comments, it does pull all of those ones, but it also pulls anyone with sort of russian or chinese characters in their name or little accents and french names, and so on, because this is what it goes after right. It's like unusual, looking things and so once again, like you're you're, trying to moderate just to get the spam out of your comments because it you know the other solution is almost just to shut off comments on your videos. You don't want to do that because you want engagement with your audience, but then, when you come up with a reasonably automated version, the problem is, you know, there's a bunch of people who probably go tom nash is censoring me and it's like no, it's uh. You know you, you got pulled because you're a spam filter, your name or you know i have those at least every at least twice three times a day.

Yeah and so moderation is a is a disaster. And so, once again you look at twitter and you say you want to make it a profitable company and it needs better money. It either needs no moderation or better moderation. Maybe maybe it's like george and science, it's difficult.

It doesn't look like an easy route to profit. I have an idea for you, patrick look. Do you remember in seinfeld, i don't know if you used to watch scifi or not. I used to be attracted to sanford.

Let me lower myself, because i it looks like i'm so much higher than you on the on the screen: um so literally higher, not figuratively um, 420, 69. um. So so i'll give you i'll give you a challenge, and i want to stay on this topic. So look, there was a seinfeld episode where george for those of you are not familiar, george was a character on seinfeld who was bald and overweight.

No job, no career very stupid lived with his dysfunctional parents. Basically, like the quintessential loser and one day he decides, i'm just gon na. Do things opposite instead of lying that i'm a marine biologist or wearing like he was also short, so he used to wear like shoes that make him a little bit taller. So i'm just going to the opposite: i'm just going to go up to the next girl and then she's going to be completely honest and he walks up to this gorgeous girl and he's like hi.

My name is george, i'm 41. I'm i live with my parents and i don't have a job and she's like smiles at him and like she. She wants him, so it worked for him. That's how the episode ends and it's a very heartwarming, uh scene.

For me, i loved it. So maybe look twitter had eight freaking years. You know this okay and in those eight years, they've basically moderated the out of content. They haven't done this.

Maybe now it's time to say: hey, here's, a guy who's, an expert at monetizing, crazy that nobody thinks could ever be monetized. He has massive clout which will be beneficial for the platform once he owns. It he's willing to pay us a 20 premium in this market, which is bad and getting worse with inflation, geopolitics, supply chain shortages, commodities, crisis, uh. Basically, the u.s economy is going to the toilet interest rates.

Credit crunch, so he's willing to give us the premium in this market and um he's also basically committing a 20 of roughly under 20 of his entire net worth for this company, which means he really gives a about it. So i don't think and necessarily - and the only rebuttal you have this - is a board member. It's like well, he tweeted a few things about the funding, secured and he's a bad actor, and we don't want this culture. I mean your culture is basically in the company.

If he firms up that offer, they will take it because they should take it's an interesting thing, because it's not really a huge premium, like usually like a 20 premium. Usually, if you look at at m a deals you're looking at it used to be kind of 20 years ago, you see 30 premiums. The average premium now is around 38, so it's not a great premium, but nowhere for a company in a market, patrick no. No.

I just to be clear - i don't think like so normally if someone came in and made an offer with a bad premium like if, if you take a reasonably hot stock right and someone comes in and says, we'll pay a 20 premium, usually the stock would pop To above that price right, so he was 50 420 you'd maybe expect the stock to pop to 55 56 bucks a share and that's because maybe even like uh 60, because a lot of people would think that someone else will come in and offer six. It's gon na be a bidding war. Basically, it's a share. You expected when you expect the bidding war yeah, and you see this all the time right where an offer comes in and the price pops to above it.

So the reason that the price did not pop - and in fact it dipped when he made the offer, is that people don't think he will or should pay this, and even now, with the funding kind of secured, like the truth is he can do this deal if He wants to people, think it's a dumb deal, it's a dumb deal. It doesn't make sense, he shouldn't want it, it's a it's a bad deal for him. Actually i remember when i was talking about this study. I did when i look at a lot of m.

A i looked at a lot of m a deals, and you see who does well companies that acquire a lot are companies that grow organically, or you know, companies that sell companies that that grow through m a tend to underperform and the reason they underperform is they're. Buying companies that are already out there at a 30 to 40 premium right, so in a way they're, always you know you look at g ge and companies like that that just grew grew grew through acquisition. If everything you buy is 40 more than what it was trading at the market before tends not to always work out that well, unless you can really turn it around, there's real synergies, and so the real reason like it's a dumb deal, because he he shouldn't do It it doesn't make sense, i think you lack vision, did not want that stock. I think you're looking at it like a banker like a like a financier, and i look at it like imagine, it's a real estate deal and we're looking at this house and it's a it's a it's.

The house is run down. Uh it's completely like the plumbing. Is uh, it's an old house beaten up and everything, but it's a don't find location. It's in prime location, all you got, ta do is fix it up and it's it's a gorgeous house.

So basically he's saying to himself look: there's not a lot of household names on social media network effects on social media are very, very hard to get over. Ask clubhouse it's the hardest yeah. So it's hard! That's why we don't have a competitor, unfortunately, for youtube! That's why we don't have a competitor for nobody, because once these network effects are yeah, it's like trying to climb a mount everest naked with a broomstick up your ass. It's it's! It's very! It's technically possible that very unlikely that you succeeded.

You showed me the photos of when you tried, and it was it was very hard. The rescue mission was uh was that it was a dumpster fire. They haven't had months of therapy after they've never dealt with the with the because the broomstick it stays in because of the freezing temperature. So they have to take you with the broomstick.

So it's not every helicop. They have to have a chinook up there, horrible um, but all i'm saying is like look there's very few hops. Twitter is a household name, massive presence, they're in everyday life of people, and yet these clowns and jack by the way cannot escape the responsibility for not getting the done. These clowns have not found a way to make money of this and the excuse by saying.

Well, it's a town square, it's hard to monet! Well, if it was easy, everybody could do it. I mean you have to. This is even the problem with a lot of social media like if you look at what um facebook paid for whatsapp and whatsapp is unmonetizable. You know and then then they try to force through that change.

You know where, where people had to accept a new version of what's happened, everyone's like no we're not taking it like it's ad ad-free and you're, not looking at my messages, and it's like you know, that is worth zero. In fact, it's got. It should have a negative price because you have to pay to maintain it like, but you know people seem to. I don't know, there's a lot of the silicon valley stuff.

That makes no sense. You know, but look traffic makes sense. Whatsapp is a peer-to-peer software. I don't i never understood how it would be like, but twitter is a public massive public exposed platform, so i would argue that look.

Every huge business came from solving a problem, solving a need, so we are going as a society towards a more constrictive and again as a russian. I still can tell you we're 100 million thousand gazillion times better than russia before the invasion. I'm not even talking about now, so just russia pre-ukraine forget about it, so we're still better off but we're slowly. The cone is closing and it's getting more and more restrictive.

What you can say how you can say it and people have kind of lost track of the fact that you know freedom of speech is designed to allow people to say things that annoy you. It's not freedom of speech. If they say things you agree with. So he's basically saying hey if i solve this problem, if i create a counter trend to counter the existing trend of all social media, this is worth money now, i'm sure he doesn't even know exactly how, but it's like we'll figure it out.

Once we give people a solution and i think he has interesting problems like one of the things i've always thought is deeply flawed with twitter and i don't think you could necessarily fix. It is just the fact that it's sort of anonymous names and anonymous photographs right and if ever someone is like really rude to you on twitter, it's never a person, who's put up their name and their photo and their linkedin page. You know it's always like uh. You know some some uh, you know crappy photo and and uh.

You know a rude name like it. By the way he alluded to this, what you're saying he said we're going to verify everybody. He said: that's going to be actually a funny thing like twitter. Many years ago i remember twitter, it used to be the only sort of journalist or whatever were verified and back, i feel in around 2012, or so they opened it up that everyone could be verified, and i remember at the time, like you look at it, you Know i had like my own photo and my own name up on twitter and i thought well, i can be verified and then it's sort of like so all you have to do is take a photo of your driver's license and send it in to us, and I was like, i don't trust these guys, like it's kind of like mark zuckerberg or whatever, like i'm, not sending you my my driver's license.

You know so i i i think that i have less of a financial financial view of this. So i'll tell you something frederick, so in any other big company you would. If, if, as you mentioned, you have a 20 premium offer for like a blue chip, massive blue chip company, you would seem increased at least interest, not saying that you see others. They are just to be clear tom.

I think that, with the financing security, if like at the end of my video, i think the people who didn't like the video stopped out early right at the end of my video, i explained that if he send like a tender offer in basically saying to all Shareholders i'll buy at this price and here's my financing, the shareholders can either agree or disagree. If a majority of them agree, then, basically he he still can't buy because of the poison pill, but it would go to the board of directors and they'd say: look 75 percent of shareholders said they want this deal. What are you gon na do and they'd say we'll take down the poison pill? You can get this deal done, but you know so i think they would let the deal be done. The the block is basically just to make sure that it's done in an orderly manner and that's very reasonable, like it, it wouldn't make sense.

So why is it like if this is your theory, what, if elon so in based on your logic? Why is he waiting if he has funding secured? Why would he wait with the tender offered and by and why would he not just bypass and just um straight up? Oh no! Well you! You can't plow through the poison pill right. So so, basically you said earlier: if i understand you correctly, so he can go, he can he can create a tender. If he gets votes, then the board will have to uh raise the and cancel shareholders rights, uh resolutions, that's the whole purpose of it right. So so, basically he's able to make an offer and get the shareholders to vote on it.

That sort of a hostile takeover offer works. That way, and if a majority of the shareholders said yes now, he still couldn't buy, but the board of directors would have to then decide based upon that and odds are. If, if there was a majority that said we want to sell at uh 5420, they would go ahead with it, but it would be done in an orderly manner. It wouldn't so.

Can you speculate why he has invested him up like share by share? He would have to make an offer that gets either accepted by most shareholders or declined by most shareholders. So i'll ask you a question and i'll tell you my theory yeah. So the question is: if everything points to the answer that a direct tender would alleviate. All of this and would allow him to put more pressure and leverage on the board to get this deal done at 54 bucks.

Why is he not doing that so? Well, he might do there's a few reasons. One is my theory that he probably is sort of still questioning this. Another thing i'll point out that i i didn't sort of uh emphasize enough - is that when we've got those those two loans, uh both the margin loan for elon and the loan uh that goes to twitter itself, they're both floating rate loans at about four or five. Above uh, so i think his one might be three over sulfur and the other one is four over sulfur.

So for the floating rate in a rising interest rate environment, the cost of that debt could explode upwards right, and so once again he does have financing. But it's not the kind of financing that i would want to use like. I i wouldn't be excited. If i was him by this now, why might he be waiting?.