Judge *JUST* Ruled! Elon Musk vs Twitter | TSLA

hey everyone me Kevin here wow we've got

an update that we got to talk about

regarding Elon Musk and we're gonna try

the forward-facing camera on the new

iPhone 14 pro so let's see what that's

like we'll listen to sound and video

quality do keep in mind I'm purposely

filming this on 720 because it's a

faster upload but otherwise let me know

what you think about the quality okay so

here's the latest uh so yesterday over

and over the last few days I've been

saying hey look you know if that

financing deal goes away Elon Musk could

basically walk away from the Twitter

deal for just one billion dollars and

since pretty much all of Wall Street and

we've done some math on the channel as

well about this think that Elon Musk is

overpaying for Twitter by a factor of

two he's basically throwing away 20

billion dollars on the company that's

worth 20 paying like 44 for it right uh

so in other words if this deal didn't go

through Twitter would probably be worth

like 20 to 25 a share now the people who

really like and want the Twitter deal to

happen hate me for even talking about

this but I mean like I'm just trying to

be honest like it's it it's true like

obviously if the deal goes through it's

gonna be great for people who are part

of the Twitter Arbitrage but otherwise

this thing's going to collapse like

really really fast so what's more

important though are the latest updates

now so first you got to know that the

trial has been set for October 17th but

we just got a huge update on this

pending the fact that Elon Musk said the

deal is back on which could have all

been part of 4D chess strategic okay

pending the fact that the deal is back

on

the court said hey looks like you guys

are coming to an agreement let's go

ahead and delay the trial to October

28th now that's really really critical

because on October 20th the bank

financing commitment expires that's

about six months actually it's exactly

six months after 4 20. yes 4 20 April

20th is when the bank financing

commitment letter was signed and given

to Elon Musk uh and quite frankly if

Morgan Stanley and the banks take on

these commitment letters like we're and

take on this commitment to do this 13

billion dollars in unsecured financing

for Elon musk's deal long and short of

it they're going to lose a lot of money

look they're going to get a lot of

advisory fees for making this deal come

together probably somewhere you know

around uh 500 to a billion dollars

really really good but that 13 billion

dollar loan they might have to carry it

on the books themselves because it might

be hard to Syndicate out remember Banks

want to make fees they don't actually

want your interest anybody in your life

who tells you oh you're just paying the

bank more interest on your mortgage

wrong you're paying it to people who

hold mortgage-backed Securities okay the

banks just want to do transactions they

want the fees that's all they want

anyway the bank if they take on this

deal there's a good chance the group The

Big Group of Seven banks are going to

take massive losses holding on to this

loan so a lot of folks on Wall Street

are like Banks would be stupid to do

this deal so what's fascinating is Elon

Musk has convinced Twitter at least to

some extent to entertain Elon musk's

letter although Twitter has not yet

agreed to accept the 5420 deal the full

price deal because in Elon musk's letter

he said hey subject to debt financing

the deal is back on which is not a new

contingency see Bloomberg earlier today

ran an article and I bitched about them

on Twitter I'm like what are you talking

about Bloomberg but Bloomberg ran a

story and they said that oh Elon Musk

says the deal is back on but now he's

including a new contingency saying it's

subject to debt financing which wasn't

part of the original deal wrong follow

me on Twitter and you can see where I

put up a screenshot of the exact terms

of the deal and we've been talking about

this the last few days on the channel

here the terms of the DLR that the deal

is subject to the availability and

funding of debt financing if the

financing isn't available because the

bank's U-turn and the loan doesn't get

funded then Elon Musk has to pay a one

billion dollar termination fee which is

obviously 19 billion dollars less than

the loss he would probably take by

actually buying Twitter uh you know six

months later from from the April

evaluations because what's happened

Facebook uh and Snapchat valuations have

halved advertising Revenue has collapsed

we're actually going into probably a

synchronous Global recession the Federal

Reserves raised rates 300 bases points

the interest on Elon musk's loan for

this deal would cost him one million

dollars more per day like huge potential

issues right and and this is also bad

for Tesla uh stockholders if Elon Musk

does have the debt financing go through

but some of his Equity Partners walk

away Elon might have to dump more Tesla

shares to make up the difference Elon

Musk talked about that back in April

he's like hey you know subject to the

the rare chance or the unlikely

circumstance that some of the equity

Partners walk I might have to come in

and bridge the gap right so yikes not so

great but anyway now what's so

fascinating is the court has just ruled

uh here you can see it on Twitter

because I shared it on Twitter oh it

actually looks really good but anyway uh

it says defendants and counter claim

blah blah blah have agreed to close on

the agreement and plan the merger date

or planned merger date of April 25th

they plant blah blah blah they agreed to

close the deal uh around on or around

October 2 28th and basically the court

trial and everything is on hold until

the 28th which is hilarious because that

happens to be eight days after debt

financing expires which is plenty of

time for the banks to go

yeah no we ain't doing this this is a

crappy deal now maybe the banks are like

nah we're still making enough money in

debt financing like we don't want to

walk on the steel we don't want our

reputation impacted whatever uh which

obviously their reputation would be

ruined if they canceled on if they

renegged on their debt commitment before

the the October 20th date but afterwards

is fair game

we're waiting if it's a debt commitment

expires on October 20th which usually

these are done in like three six or nine

month increments uh this has happened to

be a six-month increment a fair game if

the deal expires it expires right uh

anyway so what's crazy is uh this this

uh Court Document is now going to push

the trial to the 28th which gives the

banks plenty of time to cancel which

gives Elon musk's Elon Musk plenty of

time to cancel and I will not be shocked

at all in fact I am borderline expecting

Elon Musk uh anywhere between the 21st

to the 28th to basically put a letter

out and go hey you know we wanted to do

the deal but the debt financing fell

apart sorry Twitter here's your check

for a billion dollars now

Elon will technically be able to walk

away from the deal then but you can

guarantee that Twitter is going to sue

him right back but it probably in that

case will go in elon's favor so look at

what elon's actually done he's taking a

court case that was not going in his

favor at all and then right before the

court date said you know what

fine I'll do the deal

judge is like okay no problem we'll

we'll just delay the trial a few days

yeah great thanks we're closing the deal

everything's great a few days later oh

no the bank's pulled out I can't do the

deal and what happens he ends up walking

away from the team which was this goal

the first time around anyway then you go

into a lawsuit over okay well uh oh but

but but but Elon you you played us you

played us now he actually has a really

strong case because all he has to do is

say no I didn't the original contract

said it was subject to debt financing

and my offer saying I'm willing to keep

going with the deal was subject to debt

financing like nothing has changed

that's been consistent since day one and

so I did nothing wrong and Elon would

probably win that case oh my gosh this

is like the coolest journey of 4D chess

right here uh you know and Twitter

realizes that as well like uh Bloomberg

Mr Ed Ludlow over here he usually does

uh EV news but obviously because it's

related to Elon you know he's talking

about it now anyway uh he's talking

about this stuff as well about how

basically uh

Twitter is kind of onto this potential

and Twitter is not coming back and

outright accepting elon's letter because

they they're like why why are you

highlighting this debt financing thing

like what's happening here and it's like

dude come on seriously like this is

obvious he wrote Twitter opposes musk's

motion to Halt the trial Twitter says

musk refuses to accept contractual

obligations Twitter says musk can and

should close the deal next week accuses

the must team of not committing to a

closing date blah blah blah blah

obviously they're worried about the debt

musk team is saying Twitter will not

take yes for an answer must team ask for

a stay slash halt uh musk is saying

Twitter is resisting halting the suit

due to concerns on the theoretical

possibility of a future failure to

obtain financing today we know what the

arguments here are but the point is the

judge just ruled and said now we're just

going to go ahead and delay to the 28th

they just opened the freaking door wide

open for Elon to walk on this deal this

is oh they must be an Elon fan no I mean

but then again I think it's reasonable

for any judge to do this because those

were the original terms of the contract

like all right look if you can close the

deal and you got the financing by the

part by the deal

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