YOU.
>> Neil: THANKS, KELLY.
KELLY O’GRADY IN LOS ANGELES.
GOES TO CHARLIE GASPARINO.
HE’S FOLLOWING THIS CLOSELY.
THIS COULD GO A VARIETY OF WAYS
NOW THAT WE UPPED THE LEGAL
ANTE.
WHAT DO YOU THINK IS NEXT?
>> IT’S A COURT BATTLE.
THE STAKES HERE ARE HUGE.
LET’S JUST PLAY THIS OUT A BIT.
IF TWITTER IS RIGHT, ELON MUSK
OWES THEM MONEY.
A LOT OF IT, RIGHT?
IF TWITTER SAYS IT GAVE THEM THE
NECESSARY INFORMATION, HE HAS NO
BASIS, NO SOUND BASIS THAT IT’S
MORE THAN 5% OF USERS ARE BOTS,
THAT HE’S LYING TO GET OUT OF
THE DEAL, ELON MUSK COULD FACE A
COURT ORDER TO MAKE HIM GO
THROUGH WITH THE DEAL. THAT IS A POSSIBILITY.
THAT IS A POSSIBILITY.
IF YOU IGNORE A CORDURT ORDER AS
REPORTED, YOU CAN GO TO JAIL.
THAT IS WHAT HE’S FACING.
WHAT THEY’RE FACING OBVIOUSLY IS
IF HE’S RIGHT ABOUT THIS, THE
BOT INFORMATION IS MORE THAN
WHAT THEY’RE DISCLOSING, THEY’RE
IN SERIOUS LEGAL TROUBLE BECAUSE
THEY WENT OUT THERE AND SAID
THAT THEY ONLY HAVE 5% BOTS OR
LESS.
AND THEN HE SHOWS EVIDENCE THAT
THAT IS NOT TRUE, THEY PUT OUT
FALSE STATEMENTS.
A LOT OF BAD STUFF HERE.
IT WILL BE AN INTERESTING LEGAL
BATTLE.
THEY HAVE GOOD FIRMS ON BOTH
SIDES.
THAT’S WHY MOST PEOPLE THINK
THERE’S GOING TO BE SOMETHING IN
THE MIDDLE.
WHAT THAT MIDDLE IS, I DON’T
KNOW.
IT COULD BE A DEAL.
THAT STOCK IS -- THIS IS WHERE
TWITTER IS BETWEEN A ROCK AND A
HARD PLACE.
>> Neil: I WONDER WHETHER THE
REAL STOCK IS TESLA’S STOCK.
IT HAS HAD A MELT DOWN SINCE HE
FIRST ANNOUNCED THIS IN APRIL.
IF YOU TIE HIS WEALTH TO THAT --
I’M NOT GETTING INTO SPACEX OR
ANYTHING LIKE THAT.
THAT WAS THE CURRENCY FOR THIS
DEAL THAT HE WAS GOING TO USE.
YOU THINK THAT GAVE HIM SOME
PAUSE?
>> YEAH, HE WANTED TO LOWTER
PRICE OR GET OUT.
YOU CAN TRACK EXACTLY WHEN HE
STARTED SAYING MAYBE NOT SO
FAST.
JUST LITERALLY WHEN THE TESLA
STOCK STARTED TO COLLAPSE.
THAT’S THE CURRENCY HE WAS GOING
TO USE FOR THIS.
THESE COURT FIGHTS ARE MESSY ON
BOTH ENDS.
TWITTER PROBABLY HAS A BETTER
LEGAL HAND HERE.
A JUDGE COULD SAY YOU HAVE TO
PAY FOR IT.
WHAT YOU’RE SAYING IS NONSENSE.
THIS WILL PLAY OUT OVER A YEAR
OR SO.
THE STOCK IS GOING TO GET
CRUSHED.
WE’RE IN A BEAR MARKET.
TECH STOCKS ARE ALREADY IN
TROUBLE.
BY THE WAY, TWITTER IS NOT A
GREAT BUSINESS.
THAT’S WHAT MADE HIS 54.20 BID
SO ABSURD AT THE TIME THAT HE
DID IT.
IT WAS LIKE WHO WOULD BID $54.20
FOR SOMETHING THAT DOESN’T MAKE
MONEY, IT LOSES MONEY AND HAS
LITTLE CASH FLOW.
THERE’S NO BUYERS FOR THIS
THING.
THEY’RE NOT GOING TO BUY IT NOW
FOR 54.20.
>> Neil: MEANWHILE A BRAIN DRAIN
THEY’RE DEALING WITH.
A LOT OF PEOPLE ARE LEAVING.
THEY LEAN TO THE LEFT AND SYPHON
AWAY CONSERVATIVE OPINIONS.
IF IT COMES TO SOMEONE ELSE
GETTING THIS OR EVEN ELON MUSK
GETTING THIS IN THE END, HE
COULD BE BUYING A BARN THAT IS
ALREADY EMPTY OF EVERYONE
INSIDE.
>> YOU KNOW, THAT IS NOT THE
THREAT THAT TWITTER HAS.
THEY CAN FIND ENGINEERS AND TECH
NERDS TO DO WHAT THEY NEED TO DO
WITH THEIR PLATFORM.
THE BIGGER PROBLEM IS THIS.
THE BIGGER PROBLEM THAT THEY
FACE IS THEY’RE NOT MAKING
MONEY.
IT’S AN UNINNOVATIVE PLATFORM.
WHEN YOU HAVE THOUGH ISSUES THAT
YOU’RE NOT MAKING MONEY, A HUGE
LEGAL OVERHANG, IT’S NOT -- IT’S
NOT A GREAT BUSINESS.
ONE OF THE THINGS THAT WAS
INTERESTING ABOUT MUSK IS HE WAS
GOING TO CHANGE STUFF.
HE WAS GOING TO GET RADICAL AND
GET CREATIVE WITH THE BUSINESS
MODEL.
HE WAS GOING TO VERIFY USERS, DO
STUFF THAT MAYBE COULD GET IT
OUT OF ITS FUNK.
HE WAS DOING IT AS A PRIVATE
COMPANY, WHICH IS A LOT EASIER
TO DO THAN WATCHING YOUR STOCK
FALL EVERY DAY.
THIS IS REAL PROBLEMATIC.
IN A WAY, IT GETS TO THE BLIND
SPOTS AND ELON MUSK AS A
BUSINESS MAN.
WE KEEP SAYING HE’S A VISIONARY.
HE DOES DUMB STUFF.
HE DOESN’T READ BALANCE SHEETS.
HE DOESN’T LOOK AT THE FINANCES.
IT’S ALL GUT.
HIS GUT TOLD HIM AT THE TOP OF
THE MARKET ALMOST TO BUY THIS
THING FOR $44 BILLION WHEN
ANYBODY THAT LOOKED AT THIS
COMPANY’S FINANCIALS WOULD SAY,
ARE YOU OUT OF YOUR MIND?
>> Neil: MANY HAVE SAID THAT OF
YOU.
>> AND THEY’RE TRUE.