RIP Twitter

#2,501
#2,501
Ernest T. Vol said:
A better analogy is he offered to buy a steak (offer), they agreed (acceptance), but delivered bologna (no meeting of the minds), no consideration given. No contract. Now, make new contract to buy the bologna at bologna prices.
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There's no proof that he got bologna. He might get a steak that has some extra fat on it but he is more upset if he could have waited, he could have bought the same steak for $15 instead of $30.

If the same steak was now worth $50, he wouldn't be complaining about the bit of extra fat.
 
#2,502
#2,502
Ernest T. Vol said:
You're yet to be right on anything. Refresh your contract law (counselor?). How is this going to be reconciled. He did his due diligence as much as possible. What next? Cards on the table is the only way out. They will have to show through 3rd party audit.
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Typically the 5% disclosure in their 10K and footnote should have already been audited by their auditor
 
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#2,503
#2,503
BigOrangeMojo said:
Look at your 401k. The value of tech companies crashed big time in the 2nd quarter. He essentially said he'd prepay for a steak at $30 and now the steak is worth $15 and he wants to send it back to the kitchen before he sees it because it might have too much fat on it...
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What is the correlation? The facts is you are speculating that the general crash is somehow assimilated with Musk acquisition and you dont know the fact of overvaluation.
 
#2,504
#2,504
BigOrangeMojo said:
Typically the 5% disclosure in their 10K and footnote should have already been audited by their auditor
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It's not audited by anyone external and if their system purposefully has all accounts bunched in and it's not reviewed honestly by internal departments, it's not peeled back. Again, see PayPal. They had to run a 3rd party review and after years of misrepresenting, they had to walk back their users.
 
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#2,506
#2,506
utvols88 said:
It's not audited by anyone external and if their system purposefully has all accounts bunched in and it's not reviewed honestly by internal departments, it's not peeled back. Again, see PayPal. They had to run a 3rd party review and after years of misrepresenting, they had to walk back their users.
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Wasn't that the Athens TN supporter guy?
 
#2,508
#2,508
BigOrangeMojo said:
Typically the 5% disclosure in their 10K and footnote should have already been audited by their auditor
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PriceWaterhouseCoopers will also be caught up in the mess. Look for them to resign from audit, re-issue financials and/or disclaim opinion. That's when he will get it for nothing.
 
#2,509
#2,509
Orangeburst said:
What is the correlation? The facts is you are speculating that the general crash is somehow assimilated with Musk acquisition and you dont know the fact of overvaluation.
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The QQQ (that tracks the NASDAQ Tech stocks) went from 369.3 to 280.28 from April 4th (day of disclosure of initial stake in Twitter) to end of 2nd quarter. Companies without profits in the QQQ, such as Twitter did much worse, losing almost 50% of their value in that timeframe.

This isn't me speculating. This is cold hard facts.
 
#2,512
#2,512
It may move faster than expected, I’ve always heard DE courts are the best courts in all the land on this type of stuff.
 
#2,513
#2,513
utvols88 said:
It's not audited by anyone external and if their system purposefully has all accounts bunched in and it's not reviewed honestly by internal departments, it's not peeled back. Again, see PayPal. They had to run a 3rd party review and after years of misrepresenting, they had to walk back their users.
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If it goes into the 10K, it's reviewed and signed off by the auditors.

Everything I've ever put into the document or footnote of a 10K has either been reviewed or audited by auditors.
 
#2,515
#2,515
BigOrangeMojo said:
If it goes into the 10K, it's reviewed and signed off by the auditors.

Everything I've ever put into the document or footnote of a 10K has either been reviewed or audited by auditors.
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Yours. But how far back do they peel? Would they look into how many are spam/bots vs real or just a generated report?
 
#2,518
#2,518
RockyTop85 said:
Either way, the measuring the hit rate of MSM contract law experts vs. Volnation’s own Law Offices of Dunning & Kruger is going to be fun.
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I actually respect your opine on law...probably the only lawyer on here not in the Saul realm.

What do you think?
 
#2,519
#2,519
utvols88 said:
Yours. But how far back do they peel? Would they look into how many are spam/bots vs real or just a generated report?
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How far do they peel - Depends on materiality. I would assume that user count is a material KPI for Twitter.

Wasn't PayPal 4.5 million users out of 420MM users.

That's barely 1%. That would still be materially correct. Guessing on the timing, it might have been something their auditor called them out on.
 
#2,520
#2,520
BigOrangeMojo said:
It's not the bots, it's buyer's remorse. He waived due diligence and while closing the deal, tech valuations crashed. The bots are just an excuse. If the tech valuations went up by 40% during the time to close the deal, you wouldn't hear about the bots...
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Agree with this.
 
#2,521
#2,521
BigOrangeMojo said:
How far do they peel - Depends on materiality. I would assume that user count is a material KPI for Twitter.

Wasn't PayPal 4.5 million users out of 420MM users.

That's barely 1%. That would still be materially correct. Guessing on the timing, it might have been something their auditor called them out on.
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62012d2efa4f1f001826406e.jpeg

Looks like 184.3m

Regardless it was enough for a SHARP decrease. This wasn't found outside of a 3rd party review.
 
#2,522
#2,522
utvols88 said:
Discovery is going to be interesting. I'd imagine an SEC investigation may occur along side
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Ohhh..the vaunted impartial SEC..Glad Musk has so much firepower and funds.
I imagine a settlement after a long time..yet Twitter investments will be in the gutter. Of course liberal investors will pick up the slack.
 
#2,523
#2,523
Orangeburst said:
I actually respect your opine on law...probably the only lawyer on here not in the Saul realm.

What do you think?
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I know enough about contract law not to opine without reading the contract and I don’t know enough about contract law to think reading the contract would make my opinions any better. 😂
 
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#2,525
#2,525
BigOrangeMojo said:
How far do they peel - Depends on materiality. I would assume that user count is a material KPI for Twitter.

Wasn't PayPal 4.5 million users out of 420MM users.

That's barely 1%. That would still be materially correct. Guessing on the timing, it might have been something their auditor called them out on.
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What's material?:
The new definition in the ASB's Statement on Auditing Standards is:
Misstatements, including omissions, are considered to be material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
The foundation of the new materiality definition lies in the 1976 U.S. Supreme Court decision TSC Industries, Inc. v. Northway, Inc. which opined that an omitted fact is material if there is a substantial likelihood that a reasonable shareholder would(not could) consider it important in deciding how to vote.

Materiality is determined in the board room between the auditor and the Board. What if all facts were not known at the time of the issuance of the opinion?
 
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