Well, you better get your popcorn, because this thing is getting interesting by the minute so check this out. Twitter just announced through sources as published by cnbc that they will comply with the demand of elon musk to provide him with every single piece of information about every single tweet. So he and his team can verify how much bots there are on the platform. Now, what's going on here, why would they do that 24 hours after saying, hey we're not giving you a deadly squad, we got a deal and we're going to enforce it and you're going to pass whatever it is.

You have to pay us what changed their mind? Well, let me explain: there's a lot of confusion about what's going on with twitter and ellen and the drama kind of gets into this weird style of facts assumptions and emotions. I'm going to explain exactly what's going on so yesterday there was a very famous tweet by meet kevin. Essentially saying: hey, you know elon. He doesn't have to do the deal even if he waived his right for due diligence, because you know he can always rely on rule 10, b5, basically saying well.

They misled me about a material adverse effect and you know i don't got to do the deal and i actually made a video about it saying. Well, you know, material out of this effect is very very hard to prove. In fact, i mean in the past. There was just one case i mean where they actually approved it, and i actually showed that case.

I think it was called acorn doesn't matter, it's a very high threshold of proof. In that case, i believe it was like 50 percent ebitda miscalculation, but here's the thing if you actually look at what elon musk and his team did, they knew that material adverse effect is a very tough challenge to me, so they were not going for that. If you go back and you look at the letter from scott and arps, which are the lawyers of elon musk to twitter just a few days ago, they were not claiming rule 10, 5-5 or 10b fives. They weren't, claiming that there's a material adverse effect here.

In fact, they were saying: hey we're trying to get some basic information about your company which are critical to our decision. Whether we want to do the deal or not - and you are not cooperating. So you are not negotiating or you're, not facilitating the deal in a bona fide manner: you're trying to withhold information from us which we should reasonably accept and by that you're breaching the contract so they're there. You better give us the information, otherwise we're going to terminate, because one of the remedies of you know of breaching a contract is termination, so twitter at that point, had to make a decision because they were faced with the possibility of basically some of the best lawyers In the country saying hey, you didn't cooperate with us in the process to go from signing to closing.

Hence um. Basically you know we might terminate the deal. You may get nothing, not even the 1 billion in breakup fees. So at this point, twitter had two choices.

Number one say: well, we have a deal and he waived the diligence and we can just sue him in the delaware chance record right, and this is going to take years and years and lots of millions of dollars and the pr damage is insane or we can Just give him the documents, let him sift through it and whatever happens happens i mean if we think that we don't have a severe blood problem beyond what we already stated in the filings, which is we think it's five percent, but it might be more if you Can figure out that we have like 60 bots? Well, let him go to town, so i think what it implies. The fact that he gave him the documents is actually that his leverage is working. You can actually say that this is a 1-0. If this was soccer to elon because they are calling his bluff, but he made them, he made them to call his bluff by going after the cooperation clause and not for the 10 b-5 material adverse effect.

So he didn't claim or accuse twitter of having fake parts. Well, he did on social media, but he didn't for a legal proceeding in the legal sense of the word. He was saying: hey, you know, give me the information to ask for and now they just gave it to him. So now the ball is in his court.

They called his bluff, he made him do it by the way, and now he has to make a decision at this point. Twitter just took away the layup. The lap would have been hey, they're, not cooperating boom bridge boom boom boom. Let's go, you know, terminate it now.

Elon has two options: to try and figure out what the amount of bots are and try to go for the material adverse effect which is going to be a very high threshold to get, or he can basically say. Well, you know this data is not enough for me blah blah blah. I need more. He he's going to try to basically try to ask for more stuff and demand more things to get twitter to basically say no, no, no, so he can actually break away.

What i think actually is going to happen here is that they took away his layup, which is hey, they're, not cooperating. They don't give them information, so his next play, if he's trying to get out of this deal, which i think he is is by funding at this point his best play next best play, i don't think it's material adverse effect is actually going and saying hey. I couldn't raise the money, sorry i just don't have it. I mean one of the conditions.

The preconditions for the deal to close was for me to obtain the financing and i have most of it, but i don't have enough of it. So we either do the deal for a discount or we don't do it, and in that case they either agree to do it at a discount, which you know means that he is actually negotiating at a price or they don't do it. They back out - and you know he cancels the deal so the problem with this argument is going to be that um. This would have been a really cool argument if he didn't already show intent to cancel the deal.

He's already shown that he's trying to get out of the deal, and it's obvious to everybody with half a brain that you know: twitter price dropped, tesla price drop so now he's overpaying for twitter. Even more now he has to sell even more tesla stock to overpay. Even more for twitter, he doesn't want to do that. That's the real story! Here, it's not about bots.

Everybody knows that. Now the real question now would be. What does he want to do with twitter? Which price is actually willing to buy it, or is it complete? No, no and he's basically saying no, i don't want twitter and i'm out i've checked out of this relationship. If that's the case, if he's basically saying to his lawyer, say i'm out no matter what just find me a way out: they're, probably going to go down the route of saying: hey, not enough, funding.

Here's the one billion breakup fee see you later, and this would be the cheapest way to get out of it completely if he's actually still interested in buying twitter for a cheaper price. I think what just happened right now allows them a window to do that, because they showed that they are not interested in going to court. By giving documents they show twitter that they are willing to compromise, negotiate and they're trying to facilitate the deal. So now he comes and he says: hey you know i just don't have enough money, there's a good chance.

They can actually settle, although there's a good probability that this deal actually goes to the chance record and you know, goes to full-on litigation. Whatever the case may be, you better prepare the popcorn, because you know with elon. This thing is not gon na be boring. It's gon na be entertaining all the way through.

I just feel bad, for you know people who own tesla shares right now, because this thing is not very healthy for tesla stock in the short term long term, it doesn't matter but like tesla, will feel the pain out of this, because you know it's obviously viewed As a distraction and also twitter are being completely demolished throughout this whole process, i mean twitter wish they would never even met elon musk at this point, because they're being dragged through the mud right now, so you know for us as bystanders. It's going to be very interesting to see what happens now. I hope this kind of clarifies what's actually happening behind the scenes. Not just you know the headlines in cnbc.

Let me know below if you uh enjoy this video. If you agree with me and if you disagree with me, let me know that i'm an or the best thing since sliced bread i'll get you in the comments.