The Truth about Elon Musk’s Bankrupting Chaos.

me kevin here in this video you're going

to learn something incredible about

business negotiation strategies and we

are going to use the drama surrounding

twitter and elon musk to teach this

lesson to you it is so critical that you

have this perspective because boy oh boy

am i getting a lot of hate on the

interwebs right now because of my

opinion surrounding the elon and twitter

deal which the reality is

most of these folks are wannabe

attorneys or armchair attorneys who

think they know everything that's going

on and how the business world works and

the reality is a they've probably never

been in a courtroom and b they probably

aren't that good at business so let's go

ahead and get started and teach you some

real facts in real business let's pull

up my tweet first so first i tweeted

yesterday some say elon musk has to buy

twitter as is with the bots because he

quote

waived his right to due diligence

wrong i respond and i quote uh well

paraphrase the security and exchange

commission's

10b5 rule which is the fraud rule

paraphrase twitter can be liable for

omissions of material facts or providing

material misleading material facts

therefore waiving due diligence does not

mean you have to accept a fraudulent

disclosure such as understated bots note

this has like 30

000.7 likes which is pretty wild like

i've never had this many and elon musk

replied and ratioed me with 38 000 likes

with one word correct didn't even add

the period here which of course i

replied holy

life goal a cheese achieved i could die

peacefully now which also did quite well

but anyway let's talk about the lesson

here and what we have to know because

it's really really important and i'm

tired of all this back and forth and

drama that's going on but i'll tell you

drama is exactly what elon is planning

for so let's be real here everyone

talking about material adverse effects

and looking up definitions or

speculating about what a judge or jury

is going to do in the event that elon

tries to get his one billion dollar

essential uh deposit back is missing the

point everyone they're all missing the

point of business because i don't think

they understand business even the people

saying stuff like oh well elon musk is

buying twitter to fix the butts now he's

complaining that there are bots look

also missing the point

it's like being told that you're going

to buy a fixer-upper house that only

needs paint and carpet and then you

discover that it actually needs a new

foundation a plumbing system electrical

system a sewer or a roof look five

percent bots versus fifty percent bots

matters just like a foundation versus

just doing paint and carpet matters this

is why everyone's missing the point this

is not about trying to figure out who's

right or wrong about material adverse

effects because that comes down to

judgment and that takes years in a

courtroom of deliberating it could take

anywhere between two to eight years to

actually get a judgment nobody wants to

be tied up in litigation that long

nobody at twitter no executive no board

members the company itself it's not in

the company's best interests it's not in

elon's best interest and that's why

everybody is complaining about trying to

define what's going gonna happen and

who's perfectly right or wrong is

totally missing the point because they

don't understand business deal making

it's literally like a massive real

estate transaction it's a hardcore

negotiation every day and it's stressful

every single day

elon musk is undertaking a business

strategy known as chaos theory which i'm

going to talk about in just a moment but

i quickly want to give a shout out this

is a big lesson but i quickly want to

just shout out met kevin.com a public up

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public okay so what is chaos theory

chaos theory is the premise that the

more chaos you cause the more control

you have see chaos

it was believed according to the ancient

greeks that out of chaos the cosmos were

formed that is out of chaos came order

out of disorder comes order and so when

you create chaos

you have control over the order that's

created now let's think a little bit

about elon's actions he wants employees

freaking out constant stories about half

of twitter employees uncapable of coping

with the idea of elon as their boss

creates chaos inside of twitter nothing

gets done business slows down sales in

the advertising department slow down

everything slows down because

everything's discombobulated this is

chaos inside the company

creating drama over executives quitting

creates drama just three weeks ago the

vice president of product management and

the vice president of twitter services

both quit this creates chaos now you

have leaderless departments potentially

market movements like star the stock

going up or down or creating a larger

arbitrage between the 54 20 price and

the 39 and whatever sense it's at now

creates chaos

lawsuits create chaos because they

increase the stakes of the deal they

motivate the board to be conscientious

of lawsuits knowing full well that

everybody's going to end up getting sued

on both sides this is not a surprise but

the goal isn't to worry about the

lawsuits right now those again are going

to take two to eight years to resolve so

right now the goal is get the best deal

possible then you walk around with a

staff of attorneys and you clean it up

like you walk around after you fix up

your fixer-upper and you broom sweep all

the dust up the lawsuit creates noise

and chaos though and again chaos is

beneficial to the one creating order

eventually and that's elon musk this is

chaos theory employee uncertainty chaos

drama over bots drama over his billion

dollar deposit drama over material

adverse effects well if it's seven

percent bots is that still reasonable

what if it's 50 bots how are we gonna

count the bots how are we gonna you know

audit the whatever blah blah blah or

what you know what what happens if the

texas attorney general just gets

involved and this is actually really

entertaining in fact take a look at this

okay i'm gonna open this up here for you

take a look on screen now

you've got a civil investigative demand

demanding the following things from

twitter by a deadline of june 27th okay

look at this

all

computer files written printed graphic

recorded material of any kind regarding

uh or dis

of any kind of authorship on ads ad

reach bots fake accounts spammer account

any kind of content anything having to

do with advertising bots and stuff at

twitter has to now get disclosed to the

texas attorney general because they're

filing an investigation against twitter

folks this is no more than chaos but

listen to how crazy this chaos is

getting it's going to include

documents stored in personal computers

portable computers workstations mini

computers phones pagers personal data uh

voicemails you name it even a text

messages and other documents in the

possession of officers managers or even

employees literally everyone on their

personal devices or work devices has to

give up all sorts of documentation and

nobody is allowed to delete anything

otherwise they'd be subject to civil

penalties themselves if they delete

anything folks don't you think this is

going to create a lot of chaos hell yeah

and don't you think there's a high

likelihood that elon musk probably has

really good relationships uh or

relations with texas given that he moved

not only uh not only this

spacex there but moved tesla's

headquarters to austin texas and moved

to texas himself come on look at this

uh texas is going as far as saying we

want documents that substantiate you

have less than five percent bots but we

also want any kind of documentation that

contradicts

any statements that you have made that

prove that you actually have more than

five percent bots which actually means

like if you ran a study and your result

came up and said oh we have six percent

bots okay let's redo the study or

whatever they want that result too this

is basically now twitter potentially

trying to say or or a texas trying to

flush out hey twitter are you uh are you

hiding things from us we want every bit

of documentation on on on anything

related to this it's really incredible

so let's go back uh to the rest of the

lesson here so the important thing that

we have to know here is all of this

stuff look at the whiteboard all of this

causes chaos chaos theory again folks

it's the absence of order this is a

siege by attrition think of trench

warfare

little by little by little you wear them

down you wear them down and eventually

you get what you want at a discounted

price for twitter it's it's a

negotiation come on folks this is a

business negotiation chaos theory

creates order from disorder all of these

things right here are a disaster

executive's leaving this is a complete

disaster employee freakouts hiring

freeze the change slash code freeze

right here you can't even work at

twitter right now because you can't

change any of the code unless you're

breaking the rules you can't even change

any of the code right now the stock

fluctuations

perrag going mia not even tweeting on

twitter anymore the bot problem all of

this is

chaos and again folks chaos is the goal

here chaos is the goal go to

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see in the next video if you found this

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