Odd Lots Matt Levine On What to Watch In Twitter vs. Elon Musk
Jul 15, 2022
In this engaging conversation with Matt Levine, a Bloomberg Opinion columnist and author of the insightful Money Stuff newsletter, the spotlight is on the ongoing legal feud between Twitter and Elon Musk. Levine dissects the complex legal arguments surrounding Musk's $44 billion buyout offer and the possible courtroom drama ahead. He touches on the implications for journalism and corporate governance, the bot controversy affecting Twitter's ad revenue, and the humorous twists of Musk's online antics captured in the lawsuit.
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Delaware Chancery Court
- Delaware Chancery Court handles corporate law, especially mergers.
- It's a court of equity focused on fairness, with specialized judges called Chancellors.
Material Adverse Effect (MAE)
- Elon Musk claims a "material adverse effect" (MAE) lets him exit the deal.
- Proving an MAE is difficult; the bar is very high, requiring significant, sustained income loss.
Bot Argument Immaterial
- Musk's bot argument is weak since advertisers already track ROI.
- Even with many bots, ad revenue is directly measurable, making the bot issue immaterial to the deal.