ON THE TABLE.
KELLY, GREAT REPORTING ON THIS,
I APPRECIATE IT.
LET’S GO TO CHARLIE GASPARINO
WHO’S BEEN FOLLOWING THE BEHIND
THE SCENES MACHINATIONS AND WHAT
DO YOU THINK OF THAT, CHARLIE,
THAT THIS MIGHT BE HIS WAY OF
SCRAPPING A BETTER DEAL?
>> I’VE BEEN SAYING THAT FOR A
LONG TIME.
I MEAN, IT’S WIDELY KNOWN HE
DOESN’T WANT TO PAY $54.20.
NOW, YOU’VE GOT TO TRY TO GET A
LITTLE BIT INTO THE MIND OF ELON
MUSK HERE, WHAT HE’S WEIGHING.
FIRST OFF, THIS ISN’T A GUY THAT
LOOKS AT BALANCE SHEETS AND
DIVES INTO COMPANIES.
A LOT OF THIS IS INSTINCT.
THE INSTINCT IMMEDIATELY WAS I
CAN MAKE WORK, THIS TWITTER
WORK, BUYING TWITTER WORK.
AND THAT INSTINCT WAS HIT WHEN
HIS, HIS STOCK IN TESLA ARE WAS
AT PRETTY HIGH LEVELS, OKAY?
SINCE THAT TIME -- AND HIS
TIMING HAS BEEN REMARKABLY
BAD -- TESLA SHARES, THAT’S THE
CURRENCY HE’S GOING TO USE TO
PAY FOR TWITTER, HAVE GONE DOWN.
SO HE IS UNDER PRESSURE TO PAY
LESS FOR THIS.
I WILL SAY THIS, THE BOT THING
IS INTERESTING IF HE REALLY DOES
HAVE EVIDENCE.
IF HE DOESN’T HAVE EVIDENCE, I
COULD SEE A FEDERAL JUDGE, YOU
KNOW, SLAMMING THIS GUY BECAUSE,
YOU KNOW, WHAT HE ESSENTIALLY
DID WAS HE WAIVED DUE DILIGENCE,
HE SAID, HE SAID IT WAS HIS LAST
AND FINAL OFFER.
HE HAS A RECORD OF THROWING
NUMBERS OUT AND MAKING MATERIAL
STATEMENTS THAT ARE PROBABLY,
I’M BEING GENEROUS WHEN I SAY
THIS, ARE NOT ACCURATE.
SOME WOULD SAY THEY’RE LIES AND
FALSE.
REMEMBER, I’M TAKING TESLA
PUBLIC -- PRIVATE 4/20 AND I’VE
GOT THE FINANCES?
NEIL: RIGHT, RIGHT.
>> SO, I MEAN, HE’S ON VERY THIN
ICE WITH COURTS AND REGULATORS,
I WOULD SUPPOSE.
AGAIN, IF HE HAS THE GOODS ABOUT
TWITTER AND THE BOTS, HE’S GOING
TO HAVE TO SHOW IT.
AND IF HE DOESN’T, YOU KNOW,
HE’S IN A LEGAL BIND BECAUSE
IT’S NOT THE $1 BILLION BREAK-UP
FEE, IT’S DAMAGES, IT’S --
NEIL: OH, YEAH.
TESLA HAS A LOT AT ITS DISPOSAL,
BUT THE TESLA’S A MORE DESPERATE
SORT OF PLIER HERE, RIGHT --
PLAYER HERE, RIGHT?
LEGALLY, HE MIGHT WANT TO STRIKE
A DEAL OR FIND A MIDDLE GROUND
ON THIS.
>> YOU SAID TESLA, YOU MEAN
TWITTER.
NEIL: I APOLOGIZE.
>> YOU’RE RIGHT.
TWITTER, AND THAT’S THE SORT OF
PROBLEM THAT TWITTER HAS.
IF ELON IS OUT OF THIS DEAL,
BECAUSE THERE’S NO BUYERS.
WE REPORTED THIS HUNDREDS OF
TIMES.
THERE WAS ALL THESE STORIES
ABOUT WHEN HE WAS PITCHING IT
INITIALLY THAT, YOU KNOW, THE
PRIVATE EC BY FIRMS -- THEY’RE
NOT.
NEIL: WHAT ABOUT THOSE OTHER
POTENTIAL HELPERS?
LARRY ELLISON COMES TO MIND OF
ORACLE FAME, THAT HE WAS PONYING
UP A LOT OF DOUGH FOR THIS.
THEY’VE GOT TO BE --
>> I DON’T KNOW.
THEY DIDN’T GIVE --
NEIL: I KNOW.
>> PART OF THE DEAL, THEY WERE
THERE TO HELP.
APOLLO WAS IN FOR DEBT
FINANCING.
NEIL: YOU’RE RIGHT.
>> I THINK THE THING IS THIS,
THERE ARE TWO PARTIES HERE.
ONE PARTY HAS TO PROVE THAT
TWITTER ACTUALLY DID SOMETHING
EXTREMELY ILLEGAL.
NOT EASY, RIGHT?
BECAUSE THEY’VE BEEN SAYING WHAT
THEIR BOT WERE IN PUBLIC
FEELINGS FOR -- FILING FOR A
LONG TIME.
THE OTHER PARTY KNOWS THERE’S NO
BUYERS FOR THIS, RIGHT?
SO IF THEY DON’T REACH A DEAL AT
SOMEPLACE IN THE MIDDLE, THE
STOCK COULD GO DOWN TO $20 A
SHARE.
I MEAN, THAT IS A REALITY --
NEIL: WHAT CHANGED HERE THEN?
CHARLIE, WHAT CHANGED?
I’M SORRY TO JUMP ON YOU, MY
FRIEND, BUT IS IT HIM LOOKING
OVER HIS SHOULDER, HIS TESLA
STOCK IS DOWN ANYWHERE FROM
$60-80 BILLION JUST WITH THE
COLLAPSE IN TESLA SHARES.
THEY’VE SINCE REBOUNDED.
I THINK THEY WERE UP 10% LAST
WEEK, BUT THAT WAS ONE OF THE
THINGS HE DIDN’T APPRECIATE, THE
IMPACT THE TECH SELLOFF WOULD
HAVE AND MAYBE DOUBTS ABOUT THIS
ACQUISITION.
>> LISTEN, I’M BEING COMPLETELY
RATIONAL WHEN I SAY THIS, AND
HIS MIND IS NOT TOTALLY
RATIONAL.
BUT IF YOU ARE BEING COMPLETELY
RATIONAL, CHART EXACTLY WHERE
TESLA WAS TRADING THE MINUTE HE
SAID LAST AND FINAL OFFER AND
WHERE IT IS TODAY.
THAT WOULD TELL YOU WHY HE’S
BEEN DOING DANCE THAT HE DOESN’T
BELIEVE IN IT, THE BOTS ARE
THERE, IT’S NOT WORTH THE $5420.
THAT WOULD BE THE RATIONAL --
54.20.
BUT, AGAIN, THIS THING HAS NOT
PLAYED OUT.
THIS STORY’S GOING TO BE GOING
ON FOR A WHILE.
AND IF YOU WERE TO BET -- AND,
AGAIN, THE BETTING IS THAT
SUPPOSE A FEDERAL JUDGE COMES TO
HIM AND SAYS YOU’VE GOT TO PAY
$20 BILLION AS PART OF A
SETTLEMENT.
IS IT WORTH WALKING AWAY AND
GETTING NOTHING FOR PAYING $20
BILLION?
I MEAN, THAT’S KIND OF WHAT IS
GOING TO BE PLAYED OUT, YOU
KNOW, HOW MUCH WILL A FEDERAL
JUDGE DING HIM IF HE CAN’T
REALLY PROVE THE BOT THING,
WHICH HE PROBABLY CAN’T.
IT’S VERY HARD.
SO THE QUESTION IS, HOW MUCH DO
YOU WANT TO PAY TO GET SOMETHING
VERSUS HAVING OBEY AND GET
NOTHING.
THAT, THAT’S GOTTA BE IN HIS
CALCULUS RIGHT NOW WHICH IS WHY
A LOT OF PEOPLE HI THEY’RE GOING
TO SETTLE IN THE MIDDLE SOMEHOW.
NEIL: CHARLIE, IF WE CAN, WE
LEARNED HE HAS TWO MORE
CHILDREN, TWINS, WITH A FORMER
WORKER.
I THINK HE HAS NINE OVER COURSE
OF RELATIONSHIPS WITH THREE
DIFFERENT WOMEN.
HE GETS OVERLY SCRUTINIZED ON
THIS SORT OF STUFF, I GET THAT,
MORE THAN OTHERS WOULD.
BUT IT WAS COMBINED THIS PAST
WEEK WHERE HE’S BEEN IN THE
BUSINESS PRESS, SOCIAL MEDIA
PRESS, THEY’VE BEEN TWEETING
ABOUT IT HAVING NOTHING TO DO
WITH THE DEAL AS WELL.
DO YOU THINK HE JUST DRAWS MORE
CONTROVERSY WITH THIS?
>> WELL, YOU KNOW, THIS IS A GUY
THAT COUNTS IT TOO, NEIL.
I MEAN, I WONDER IF HE CARES,
YOU KNOW?
NEIL: TRUE, VERY TRUE.
>> YOU KNOW, TWITTER -- TESLA,
YOU KNOW, NOT TOO LONG AGO WAS
READY TO FILE BANKRUPTCY, AND HE
ESCAPED.
SO, YOU KNOW, HERE’S ONE THING I
DO KNOW, THAT GAMBLERS THAT WIN
A LOT IN THE BEGINNING, WHICH
HE’S KIND OF THAT TYPE OF
GAMBLER, THEIR LUCK OFTEN RUNS
OUT SOMEWHERE ALONG THE LINE.
I’VE SEEN IT ON WALL STREET, AND
I CAN SEE IT HERE THAT, YOU
KNOW, MAYBE HE’S GOING TO THE
WELL, PUSHING THINGS WAY TOO
MUCH.
AND THEN TRYING TO ESCAPE THIS
DEAL AFTER WAIVING DUE
DILIGENCE, AFTER SAYING LAST AND
FINAL OFFER, AFTER -- AND THEN
TRYING TO COME UP WITH AN EXCUSE
ABOUT BOTS THAT IS NOT GOING TO
BE EASY TO PROVE, MAYBE THIS IS,
YOU KNOW, HIS LEHMAN MOMENT SO
TO SPEAK WHERE LEHMAN GAMBLED SO
MANY TIMES, BEAR STEARNS GAMBLED
SO MANY TIMES AND WON IN THE
PAST THAT THE LAST GAMBLE IS
WHERE THEY LOST IT ALL.
I TELL YA, THAT’S KIND OF WHAT
I’M SEEING HERE.
IF YOU LOOK AT HOW MANY TIMES
THIS GUY’S GOTTEN OUT OF JAMS
WHERE YOU THOUGHT HE WAS GOING
DOWN,, YOU KNOW, IN FLAMES, IT’S
BEEN A LOT.
THAT WHOLE THING ABOUT SAYING I
GOT A DEAL AT 420 AND IT’S GOING
PRIVATE WITHOUT ANY EVIDENCE, I
MEAN, THAT’S, THAT’S PRETTY
SERIOUS STUFF, YOU KNOW?
IT MOVED THE STOCK, PEOPLE MADE
MONEY AND LOST MONEY.
YOU KNOW, IT IS NOT A GOOD THING
TO KEEP GOING BACK TO THE WELL
WITH STUFF LIKE THIS.
IF HE DOESN’T HAVE EVIDENCE OF A
REAL BOT PROBLEM HERE, NEIL, YOU
KNOW WITH, THAT’S GOING TO BE AN
ISSUE FOR HIM.
NEIL: YEAH.
HE MIGHT HAVE TO PAY UP.
CHARLIE, THANK YOU VERY MUCH.
CHARLIE GASPARINO.
AS CHARLIE AND I CAN BOTH TELL