Specific that i do want to talk about what i do want to talk about is elon musk acquiring twitter, which is a story that is developing right now, um. It is breaking several different outlets. I didn't have enough time to go, make a proper video about it and there isn't enough information. Yet, however, we do want to go and talk about james and say how can one might remain? Who can remain constipated right so um we uh.

We want to talk about something: that's just broken, which is the twitter board has now gone, and this has been leaking throughout the different media and accepted elon musk's offer or apparently about to accept illegal muscle for dubai twitter. What does this mean so uh? The twitter board is going to turn around from what they said before. I'm going to go through the details of exactly what transpired and how it played out in just a second and they're, going to go and accept elon, musk's, full and final 54.20 offer for twitter, and, if you have not been following cluster, has been happening. Let me just stick this on the screen over here um we have uh the releases and a bunch of other people uh breaking this news story.

Uh twitter shares are up at the moment they are trading at very close to well just a small discount, and there is still a chance that this does not go through for two several for two main reasons: one is: we have a 12 hour 20 24th hour. Last minute, whatever bid by a white knight who turns up and tries to disrupt and tries to muscle in and get twitter for themselves, this is probably somewhat unlikely because the types of entities that would be able to do this are probably not going to be nimble Enough to go and move unless they have pre-planned a move of this magnitude. But i imagine that many of the companies just the amount of cash they have to fork out and the decision-making process would probably be a bit too tough because uh, because it would take a very large entity or uh, one of maybe a as a very tiny Handful of people who could theoretically finance such a deal so um that is going to be happening. Um, like the buyout, is not going to be happening pretty much for sure, although the other reason other than the white knight turning up is if something falls flat through the financing.

However, and if you've been following uh twitter, you will see here in the amended 13d filing that elon musk did a few days back, which is what triggered this whole thing in the first place. So, on thursday elon went and submitted an update to the original filing that he put through to buy twitter and in this yet another. I think the third amendment that he filed he put together a whole bunch of proposals, uh of how exactly he's gon na be financing the deal, and you cannot, you can see it all here. You can read it, but it's a combination of three different things.

So he's putting up his own cash, the vast bulk of the money that he's putting up his own cash, then there's a margin loan and the margin loan um is a whole bunch of different people. So you see here's like a whole bunch of banks, morgan stanley, bank of america, providing uh barclays, providing the big money and we have g credit, suisse b, p power. You can see there's a huge number of people who, for some reason, believe that elon musk is good for the money and think that he is going to be able to deliver on twitter and that their investment there on the margin loan is secure. Enough against title shares, but um uh.

Somehow a lot of people said that he didn't have enough equity available in tesla in order to be able to go and do this financing deal um. I'm sorry! I'm sorry! If you guys can't hear me, i don't know, what's happening here, but um, it's it's it's uh! I it i i jumped in with that. Without doing it doing enough turning the volume uh. I'm sorry all right so um if you, if, if you go and read the the remainder, i'm low, i'm sorry, i'm sorry, i'm doing my best and uh i just jumped in, and i probably should have sorted out a few of my tech commitments earlier anyway.

All right so there's a commitment letter here from uh from the people who are giving in the loans as well, and you can see there's a bunch of uh notes that they get that they're getting in exchange and then elon musk uh himself got an equity financing Letter here as well, so once this happened on thursday, let me just switch to me talking once this happened on thursday, the twitter board seems to have suddenly taken elon musk a little bit more seriously. I don't really know what they were thinking beforehand. I don't know if they were thinking. Oh, this is just a dumb play that elon musk decided to do to take the mickey out of the sec to try to get.

You know, uh people to hate him for whatever reason, i'm not really sure what they were. Thinking but once this transpired suddenly things turned very very quickly. I think the stuff that i was talking about in the videos last week. If you watch those videos, i explained that i think this deal is a done deal and explained why some of the defense mechanisms are absolutely not going to work, and i think the primary thing is that the twitter board realized that spending time in jail is probably Not what they want to be doing, for you know, um after this deal does not complete if they choose to sabotage it, for no reason, if you go and look at twitter share price.

This is what the twitter share. Price has been doing. Um, since the company went public, doing absolutely nothing, and so the company went public almost 10 years ago and the share price being yo-yoing sort of within a range. You know like going up over here, 70 dollars doing down over here, 16 15, but largely speaking for a period of 10 years for a tech company for a growth stock like twitter is.

This is not very much and we're still, you know, looking at a loss-making company, there's no p ratio etc. However um, when the board went and looked at it, they kind of sat there and thought okay, so we have several different ways out of this right. One way we're going to defend and we stop elon musk taking so the poison pill. Com method can be enacted, they can go and push, they can go and make lose a public statement saying they really don't want elon musk to take over.

They can make up some corporate mumbai jumbo reasons as to why that is the case other than we don't like elon, and we don't want him to take over the company. They could make up a whole load of reasons which aren't well elon might come in and actually dig up. The reasons why we have been running the show in the way that we've been running potentially things that maybe about the decision making that don't necessarily want to come out into the public, because there's been some very high profile, spats very high profile people being banned. Exactly the reasoning and potential accusations of collusion, et cetera, et cetera, however, if they go down that route and then elon musk pulls out, there would be a very serious uh likelihood that the share price would then tank because we've just seen a few days ago, the Launch of true social - and i am not convinced that that has any legs - maybe it will - maybe it won't, but some potential theoretical, maybe competition.

If elon musk went and decided to start up his own platform and maybe collaborated with some other people, maybe collaborated with jack. Maybe corrupt collaborated with, i don't know some other people that have the wheels a lot of influence that he has close connections to and went to start a platform and began smashing it relatively quickly in terms of user growth. The problem we are going to be having potentially in that scenario is that the twitter share price would potentially tank and twitter board would just be sitting there going. Oh, my god, what do we just do, because the everyone who owns twitter shares at that point would be suing the heck out of them for turning down a deal that was placing a very high premium on the share price at the time when the bid was Made and if the share price was to go and dump as a direct result of this and the valuation the twitter board were going to put together was nowhere near reality.

There would potentially be in some serious hot water because there was rumors just two days ago that twitter board is going to sit down and actually come up with their own valuation, which is going to be something like 90 or more over 100. But i tweeted about this uh, i think yesterday, whenever it was or maybe this morning i was saying it's funny how the twitter board - and somebody just posted comments, remind me funny how the twitter board suddenly had a change of uh thinking once they realized that the Earnings season is on and they're about to have to tell everybody how well or perhaps not quite so well, twitter is doing and what they think the rationale behind that is so, i think the kind of proximity to that date and the potential reaction from the investors Did not necessarily make uh twit uh the twitter board any more amenable to going and trying to fight the fight, because if, if they were to win the fight, they would be shooting themselves in the foot and so they're kind of sitting there. For a couple of more days waiting can somebody come and make a an authentic bit and there's a lot of noise on that front. There's a lot of people saying that, yes, somebody is definitely going to be coming along and buying twitter.

Instead, maybe google, maybe microsoft - maybe somebody else i mentioned earlier. I think the the pace at which this is developing is a bit too fast and for those guys, the commercial reality is perhaps not there in the same way that it is for elon in terms of what he's looking from the company and i think for him, It is not a purely commercial player which would be for those other entities and google's not going to go and buy twitter just for fun uh, where, whereas twitter, whereas elon, i'm not saying he's buying for fun. But i think there are maybe alternative, not just purely commercial reasons why he is doing it, and i talked about that in previous in previous videos as well, so uh they are a little bit more structured, go and check them out if you're. If you're interested.

However, uh one thing that i think is is kind of overlooked in all of this is on sunday sunday the twitter board went and got together, uh yesterday and apparently spent the morning going and deliberating and deciding, and i think they came to the realization of what I was describing previously, which is the poison pill, the the way it was designed, uh. The way it was created, i think, was never going to be a uh workable, even if elon decided to go and buy the shares, because elon could go and enforce the poison pill with a fraction of the amount of money that every investor in twitter would have To then put into the stock to defend the stock from the acquisition and the problem is the twitter board might make all the noises and shout loudly and say stuff blah blah blah blah. However, it would not be them defending the company, it's not going to be them putting their own money. They don't own any shares at all.

Some of those guys don't own any shares like their own minisculent like 0.00, something percent each uh altogether. They own hardly any shares whatsoever other than jack who's departing the board, and some of those people on the board of twitter, don't even use twitter. They have like a blank profile which might makes you wonder how much do you really understand about commercials like at any level of depth about how the product fundamentally works when there's a free public available product that you've never really properly tried? And i think like to me as a product guy that that in itself was, it was a way to move, but they sat yesterday morning and kind of thinking. So the poison pill that we've put together in a in a rush seems to have been a bit too fast and we didn't really think through the implications.

Um will will there be uh, you know another person coming in to buy, we, it doesn't look like it and if, if we delay and if elon pulls out an elon remember, this is a non-binding bid that he put together. Elon could have pulled out at any moment and completely decimated the share price. So actually, the situation was more risky and more dangerous for the twitter board than it was for elon musk, because he had all the cards if he he he could pull out at any moment. The the way that the twitter board could not because the twitter board can just go and say that's it final decline, we'll never ever discuss with you, because that's not something that the board of public company can theoretically do, because elon could continue engaging in other means Who could go direct tender to the shareholders, which is probably now looking back at it? That alone, along with some of the other moves that elon was making, are likely to have been more like sort of like indicators of the potential risks to the board, because he could he kind of looked at their.

Their pathetic way of defending the company said all right. Well, i can just go and try to buy the shares of the shareholders outside of the poison pill, without you being able to enact it because by the time i've bought i'm not going to go from 10 to 15 from 9.1 to 15 percent. I'm gon na go from nine point one percent to sixty percent in one go and by the time i've gone it'll be too late to issue your shares by the way. It is a bit weird to me and please, if somebody has been studying this a little bit more than i have.

Please do tell me, but did the twitter board through this rights issue, that they did create a whole new share class for no reason whatsoever, because there wasn't actually a need to create a new share class. They could have done exactly the same thing with exis with the existing share structure, but did they create a whole new share class just so they could do a 420 joke, because that was the only way they could introduce it uh in response to elon musk bidding 54-20, because that seems like a really pathetic waste of time that they went and sat with lawyers to put together, instead of actually thinking through what they should be doing, which is probably accepting the bid without creating the whole hoo-ha. But then they just sat there and thought. Well, we can't really win.

We can't really there's no point in defending the business, because the only potential outcome is we're going to get screwed we're going to lose money we're going to get potentially sued. We can't really go and wait forever because elon musk can then drop and then then we're going to be screwed. So the only other option is oh, we should probably sell the company. Maybe you should have thought about that before this whole situation, unraveled um, but but that's apparently what happened and then later on yesterday, reportedly, according to all the stuff that has been published um over the last few hours, they actually met with elon musk.

I'm not sure exactly where online, whatever in person, i don't know um and discuss some of the specifics and apparently they are now about to go and announce this deal, and i don't know while i'm talking this could have happened, but if you have uh one second, I'm just going to show you this. If you've been uh following twitter, elon musk started giving a whole load of uh, not very uh sophisticated hints about the fact that he the deal is now pretty much there. He went and tweeted over here. I hope that even my worst critics remain on twitter, because that is what free speech means a very, very strong indicator that the deal is done and dusted as far as he's concerned, because uh, along with some of the other stuff and be my love and reign.

There's a whole song reference there uh that i uh that apparently talks about birds in the forest, uh and stuff like that: a retweet about hyperloop, but he's been tweeting on um, taking taking the mickey out of bill gates for shorting tesla stock, but you've been making A couple tweets just in the last hour uh, which are indicating that the twitter deal is done and he is uh going to be acquiring it, and now the twitter is straight trading extremely close to what are we 51.81? The indications are that the stock market believes that this deal is done as well, because people are saying well the risk, the risk of him not buying zloty low. We are getting quite close. The upside is now what like five percent of their about, potentially to account for the potential risk of this falling through at the last at the last minute. So there we go um, it kind of sounds like maybe you know the theory there.

We go the theory that uh elon musk is going to be buying twitter because there is no other good option in in play and he has played the cards exactly right in order to set this whole situation. Up um has really played out and it's it's come through a lot quicker than i think a lot of people anticipated. If you played this game uh. Congratulations to you.

I did not. I i just didn't, like the odds of things, going crazy, because people were playing defensive mode because they there were things that they were happy to trade for the potential financial and other legal risks and stuff like that. But there we go um. It will be interesting if you are a twitter shareholder, and this does go through the the way that they're reporting this is going to go through is that the board will recommend uh the action to shareholders, and if that is the case, then, when the vote takes Place uh by the shareholders.

It will be a pretty much done deal. I think, like some people say: oh what, if the shareholders vote against what, if the active, but the problem is, if you are a passive fund or uh, anything like that who, who just generally act with the board unless there's an extremely strong good reason why they Shouldn't be but like if you're an index fund or things like that, you um those boats are in the bag or that they're gon na abstain, or not vote or depending on the setup of the specific fund, if you're an active fund manager. If you vote against - and you collude with some of the people or or try to like play a game with some of the people and you vote against, what is the benefit to you, because all you're going to be doing is you're going to derail this deal At the last moment, the twitter share price is going to then collapse. Instead of you keep picking up 54.80, you might be sitting there on your dollars for the next several years.

There's no re, and especially for some of these active managers, who are a little bit more active than some of the active fund managers from the past like kathy wood, who is one of the biggest active funds that holds twitter stock. The question mark is going to be well like do you need to shoot yourself in the foot? Why not collect the 54.80 move your money into something else, instead of just turning it down so um elon musk has remembered 99.1 himself. So the likelihood of this deal falling through if the board recommended um as a vote, then i think it's going to be extremely difficult. Uh for that deal to then not conclude, because at that point it's kind of like like that's, which board have to go and pay elon musk a fee if they go and on formerly recommended if they pull out.

For whatever reason and - and i think it would be - it will be highly unusual so um if you are a shareholder, if you own twitter, shares if that vote goes through, then then all will happen. Is it kind of the same process as a friendly d listing where the twitter shares will eventually come off the stock market? You will be issued money 54.80, a share uh. Whenever that that that price is complete and that'll be it, you won't be able to invest in twitter anymore, because it'll become a private company. Uh, it's sure is going to be taken off uh the stock exchange in new york and then we're gon na be watching what happens after to the service.

It's certainly been an interesting week. I i did make a few uh like two or three videos about it, because it was just so exciting and so interesting and i got a lot of hate. A lot of people saying you don't know anything about their season. I i was saying that there there is a very high degree of certainty that this deal is going to come through right.

The beginning, when the very first uh piece of paper was filed with the sec. The very first acquisition which was uh, was it 10 11 days late, but it turns out or more than that uh, but it turns out that that that is exactly how it transpired and interesting if you've been eating popcorn all this time. Congratulations, it's uh! It's very exciting and let's hope that this does cross the line and and get uh and get this deal completed, because um it'll be interesting to see just as a user of twitter and just somebody who is interested in the development of this kind of tech. As to as to where this goes, but it certainly is now um, i don't know if anyone's seen anything elon must have not tweeted anything else so far, um but um, there's no indications that anything is derailing or moving anywhere.

So uh there we go uh. We'll talk a little bit more about it as and when there's something interesting to talk about, but for now i'm gon na go. Thank you very much for joining this live uh impromptu. I really appreciate it.

I'm sorry. I haven't read all the comments because i just been too busy trying to say what i had in my head and i've got to run. But thank you so much and as always, i will see you guys later.