[HN Gopher] Twitter says Musk's spam analysis used tool that cal...
       ___________________________________________________________________
        
       Twitter says Musk's spam analysis used tool that called his own
       account a bot
        
       Author : hassanahmad
       Score  : 329 points
       Date   : 2022-08-05 17:13 UTC (5 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | jjeaff wrote:
       | I find it rather ridiculous and in bad faith that Musk is harping
       | on the bot issue for 2 reasons.
       | 
       | First, it wouldn't matter anyway. He signed away any and all
       | rights to due diligence in the agreement.
       | 
       | And secondly, it's completely impossible for any outside analysis
       | to determine the number of active users on Twitter because most
       | active Twitter users don't tweet or interact in anyway. They just
       | read tweets and those users see ads, which makes them monetizable
       | users.
        
         | judge2020 wrote:
         | > First, it wouldn't matter anyway. He signed away any and all
         | rights to due diligence in the agreement.
         | 
         | He waived DD but the claim is that Twitter specifically
         | inflated numbers to make itself appealing for an
         | acquisition/merger, which would still be grounds for breaking
         | the contract without Musk needing to give any money to Twitter
         | or complete the purchase.
        
           | pwinnski wrote:
           | IANAL, but I've read Twitter's SEC filings, and I don't see
           | any potential inflation. The section on bots is extremely
           | clear and specifically states that reality may be higher or
           | lower than their rough estimate, after explaining exactly how
           | they make the rough estimate.
           | 
           | So... "We think it's 5% using these methods, but if those
           | methods are wrong, then the actual number could be higher or
           | lower." How does that lead to grounds for breaking the
           | contract?
        
             | judge2020 wrote:
             | The claim is that it's actually much higher, say 25%, but
             | they're intentionally misrepresenting it as 5%; Elon only
             | purchased it at the $54.20 share price because of the
             | market valuing Twitter at a certain price ($45) based on
             | those bot numbers. Musk is claiming that, if the bot
             | numbers were correctly reported at the higher percentage,
             | then the market would've valued twitter at a lower price
             | and he would've offered to purchase it for less money.
             | 
             | But yes, this is very unlikely to be proven since it'd also
             | be fraud against every investor that has put money into
             | TWTR within the past few years, opening the company up to a
             | shareholder lawsuit even after it goes private.
        
               | ryandvm wrote:
               | I suppose the next time Musk tries to buy something that
               | costs $44 billion dollars he should do a little more
               | homework. Waiving due diligence, though perfectly in line
               | with his trollish vibe, is something he's going to regret
               | for years.
               | 
               | The bottom line is the guy gets off on being an
               | irreverent, flamboyant dipshit and this time it's biting
               | him in the ass. And I for one am here for it. After the
               | last few years I have run out of patience with assholes
               | with money/power thinking they can do whatever they want
               | in broad daylight. Christ, at least have the decency to
               | be surreptitious about it.
        
               | preommr wrote:
               | > The claim is that it's actually much higher, say 25%
               | 
               | Like the parent comment said, bot count was tied with
               | methodology.
               | 
               | So Musk can argue:
               | 
               | 1) twitter is lying about the results of their
               | methodology - highly unlikely
               | 
               | 2) their methodlogy is flawed - which he should've
               | brought up during discovery and asked to revaluate
               | according to his requirements.
               | 
               | Either way, seems like he's screwed.
        
         | pauldenton wrote:
         | "He signed away any and all rights to due diligence in the
         | agreement." Why do more fraudsters not use contracts If people
         | can sign away due diligence, sign up for a Diamond, get a
         | Lemon, and have no recourse, surely scammers would be doing
         | this instead of structuring their scam in a way that has the
         | potential of sending them to jail
        
           | jacquesm wrote:
           | The default is that you have the right to perform due
           | diligence prior to making a binding offer. If you make a
           | binding offer and waive the right to due diligence doing it
           | later and using whatever you find to back out of the deal or
           | change the price likely will not work. Musk can't claim he's
           | a business newbie and besides that was spelled out black-on-
           | white.
        
           | AlexandrB wrote:
           | Scammers _are_ doing this. It 's called cryptocurrency.
        
           | ncallaway wrote:
           | I mean, that's how a lot of immature markets without
           | regulations work, until laws are added to say "you can't do
           | that for this kind of transaction".
           | 
           | That's why many states have lemon laws for used car sales, to
           | prevent exactly that kind of behavior in that market.
           | 
           | Sales of corporations often don't have consumer protection
           | style regulations, because consumers don't often buy
           | corporations.
           | 
           | The assumption is if you're spending enough money to buy a
           | corporation, you're a big boy and can pay a lawyer to review
           | your contracts.
           | 
           | So, if you're spending $54B to buy a company, you should have
           | your lawyers closely review the terms of the contract. Every
           | lawyer I've heard that reviewed the contract Musk signed is
           | gobsmacked by its terms and would have strongly discouraged
           | Musk from signing the contract as written, because it's so
           | one sided in Twitter's favor.
        
             | jjeaff wrote:
             | We also can't forget that there was time for due diligence
             | before the contract was signed.
        
           | Spivak wrote:
           | You don't deserve the downvotes here. Agreeing to buy Twitter
           | as-is does not absolve them if they're found to have
           | misrepresented what they're selling which is what the legal
           | angle they're gunning for is. I don't buy it but it at least
           | logically follows.
        
           | megablast wrote:
           | He was allowed to do due diligence, he chose not too. People
           | said it was dumb at the time.
        
           | jjeaff wrote:
           | Sure, indemnity doesn't always work, especially in the case
           | of scammers going after your average consumer.
           | 
           | But clauses like this are highly binding when dealing with
           | high stakes deals between sophisticated parties with highly
           | sophisticated teams of attorneys on both sides of the deal.
           | 
           | And you certainly couldn't break a deal like this on a hunch
           | that the number of daily active users might be wrong. That
           | would be like holding up a national presidential election
           | because the losing team believes there was fraud but has no
           | evidence yet.
        
         | SketchySeaBeast wrote:
         | And thirdly, his boast was that he would solve the bot problem
         | and that would make twitter better. More bots means there's
         | more room for him to improve the company - should be a good
         | thing.
        
           | bambax wrote:
           | Yes! And in addition to that, some people have argued that
           | _the more bots the better_ , because, since Twitter's
           | financials are not in dispute, the value of each actual mDAU
           | is proportional to number of bots.
           | 
           | Twitter revenue for 2021 was $5b, for, say, 200m mDAU (actual
           | number is a little over that); each mDAU is therefore worth
           | $20. But if half of these are bots, then each non-bot is
           | worth twice more!
           | 
           | If all mDAU are actually bots save one, that one user is
           | worth five billion dollars per year.
           | 
           | Musk should be very happy that there are bots. Not only is
           | his defense irrelevant, for the reasons listed above, but
           | it's also incoherent.
        
           | lijogdfljk wrote:
           | Disclaimer: Just speculating with your scenario. I know
           | nothing on this subject and my understanding of this deal is
           | that of mild curiosity at best.
           | 
           | Fair point. Though i would think bots still affect price,
           | right? Ie lets say it's 100% fake right now, what would the
           | value be? Lets say $0 for easy math. Buying it at $54.20
           | means he has to at least clean up the bots enough to make it
           | worth, at least, $54 to regain his investment.
           | 
           | So while i think your point is interesting, if bot count
           | affects price then i feel one could argue there's a bot
           | threshold whereby he would be over valuing it.
           | 
           | In your scenario the sweet spot would be if it was just
           | enough bots to make $54 a fair price, but also lots of bots
           | in total so that he could "fix the problem" and increase
           | value.
        
             | jjeaff wrote:
             | Actual bot count is irrelevant. The only thing that matters
             | for revenue purposes would be the results that advertisers
             | are getting by advertising on the platform and what
             | advertisers think of the bot count.
        
               | snovv_crash wrote:
               | No, it is relevant. When the curtain is pulled back and
               | it is revealed that all of the accounts are bots,
               | advertisers will stop spending money with Twitter.
        
       | rchaud wrote:
       | Few accounts post as much vapid engagement-bait and as frequently
       | as @elonmusk does, so I have sympathy for the bot analysis tool.
        
         | onelovetwo wrote:
         | Thats not what bot means...
        
         | bhouston wrote:
         | I couldn't take it and had to block elonmusk on Twitter. It was
         | just dumb bait tweets but everyone was constantly reacting to
         | them. Horrid and I have better things to do with me time.
        
       | bell-cot wrote:
       | "I don't want to belong to any club that would accept me as one
       | of its members." - Groucho Marx
       | 
       | "I don't want to buy any..." - Elan Musk
        
       | hk1337 wrote:
       | So, it worked?
        
       | smiddereens wrote:
        
       | givemeethekeys wrote:
       | If it turns out that it is a bot though, it'd support Elon Musk's
       | argument that we need to be afraid of AI.
        
       | rmbyrro wrote:
       | Already preparing some popcorn. This will be fun to watch.
        
         | [deleted]
        
       | siliconc0w wrote:
       | Musk has a chance if he can show that Twitter knowingly mislead
       | the public about the bot %. It sounds like their methodology was
       | indeed pretty weak, arguably deliberately so, and they had people
       | on staff that should've known this would produce poor estimates
       | with a large margin on error.
        
         | kentm wrote:
         | Their stated methodology isn't weak though. It's pretty good
         | actually,
        
           | siliconc0w wrote:
           | Was it? TBH I'm a little confused by the downvotes - going by
           | the 100 sample size number @ a 95% confidence level this is a
           | 10 point margin of error. This seems like basic statistics
           | but maybe I'm missing something. I think it's fair to assume
           | that they had people who were taught basic statistics doing
           | these calculations. If these people then say they think the
           | number of bots is 5% without mentioning the margin of error
           | due to their methodology that seems deceptive. I'm not a
           | lawyer but if I was on a jury I could see being persuaded by
           | that.
        
       | mike_hearn wrote:
       | Urgh, Botometer. I guessed it would be that as soon as I saw the
       | headline.
       | 
       | I used to work on fighting bots. Botometer has a long and storied
       | history of making totally false claims about Twitter accounts. In
       | the past it identified something like 50% of US Congress as bots.
       | It has unfortunate credibility because it's a machine learning
       | model produced by academic "research", but no credibility is
       | deserved. The academics who created it are, in my view, guilty of
       | gross intellectual misconduct.
       | 
       | Botometer has had an absurdly high FP rate for years and Twitter
       | are right to call Musk out for using it, though presumably Musk
       | was just as conned as everyone else who has used this tool.
       | Really the Botometer papers should all be retracted, as should
       | any papers that relied on it, and then the researchers who
       | created it should be fired. Unfortunately this would require
       | retracting huge chunks of academic social bot research -
       | Botometer is just _that_ prevalent.
       | 
       | A thorough debunking of the model can be found here by Gallwitz
       | and Kreil:
       | 
       | https://arxiv.org/pdf/2207.11474.pdf
       | 
       |  _" In this paper, we point out a fundamental theoretical flaw in
       | the widely-used study design for estimating the prevalence of
       | social bots. Furthermore, we empirically investigate the validity
       | of peer-reviewed Botometer-based studies by closely and
       | systematically inspecting hundreds of accounts that had been
       | counted as social bots. We were unable to find a single social
       | bot. Instead, we found mostly accounts undoubtedly operated by
       | human users, the vast majority of them using Twitter in an
       | inconspicuous and unremarkable fashion without the slightest
       | traces of automation. We conclude that studies claiming to
       | investigate the prevalence, properties, or influence of social
       | bots based on Botometer have, in reality, just investigated false
       | positives and artifacts of this approach."_
       | 
       | It took them years to get this paper published, and when they
       | first announced their work the Botometer guys simply called them
       | "academic trolls" and ignored the problems they reported (except
       | for hard-coding their examples to be correct!).
       | 
       | If a full paper is too much, I've written a couple of essays
       | about the problems of social bot research. This one summarizes an
       | earlier/longer version of the GK paper above:
       | 
       | https://blog.plan99.net/fake-science-part-ii-bots-that-are-n...
       | 
       | and that earlier paper cites another essay I wrote back in 2017
       | about a non-Botometer based Twitter bot paper:
       | 
       | https://blog.plan99.net/did-russian-bots-impact-brexit-ad66f...
       | 
       | Given these issues it's not hugely surprising that Musk believes
       | incorrect things about Twitter bots. The field of Twitter bot
       | research is massive with over 10,000 papers. The original
       | Botometer paper has been cited over 800 times. He is far from
       | alone - many politicians and journalists have all fallen for
       | these claims too. Twitter should probably have pushed back far
       | more strongly, far earlier, but the general convention of never
       | criticizing academics regardless of how dishonest they become
       | defanged them and they never went further than a rather mildly
       | worded blog post. Now the chickens have come home to roost.
       | Misinformation spread by "misinformation researchers" is creating
       | real world legal consequences.
        
       | Eriks wrote:
       | Maybe that's because he is acting as a troll sometimes. Troll,
       | bot. What's the difference.
        
       | rossdavidh wrote:
       | It is possible that this means Musk's spam analysis tool is
       | defective. But, there is another logical possibility...
        
         | shapefrog wrote:
         | If Musk can prove that he is a bot, then he wins this lawsuit.
        
           | dane-pgp wrote:
           | Imagine the gasps in the courtroom when his lawyer walks in
           | and people notice it's actually a prototype of his Optimus
           | android, that somehow managed to pass an online law degree.
           | 
           | Presumably it would then announce that it is an expert in
           | "bot law" and the judge would have no choice but to let it
           | argue Musk's case.
        
             | shapefrog wrote:
             | And then people look even closer and notice that its the
             | same prototype of the Tesla android revealed to much
             | fanfare in 2021, and now that they can see it up close and
             | in person - they realise its actually just a person in a
             | gimp suit, it always was.
        
       | jqgatsby wrote:
       | plot twist: the spam analysis tool is correct, and Elon is
       | actually a robot, ala Stephen Byerley in Asimov's "Evidence".
        
         | spansoa wrote:
         | His Tweets are all done with an iPhone, as Twitter allows you
         | to see what client a tweet was made from. The only way bot
         | behavior could be done on a smartphone, is if the phone is an
         | iOS virtual machine, and the tweets are programmatically
         | generated using some algo.
        
           | egypturnash wrote:
           | You're neglecting the simple solution of a hot dog moved
           | around by a few actuators. Musk could totally be replaced by
           | one of these.
           | 
           | Or some other stylus that you can use on a touchscreen with
           | your hands in non-conductive gloves. But a hot dog is
           | funnier.
        
             | InfoSecErik wrote:
             | In the same vein:
             | https://www.youtube.com/watch?v=UXacA35s6vo
        
             | SketchySeaBeast wrote:
             | I'm now seeing Elon Musk in that one universe from
             | Everything, Everywhere, all at Once.
        
           | martin8412 wrote:
           | Not if the bot has a physical form and is able to interact
           | with a physical iPhone.
        
         | notahacker wrote:
         | I quite like the plot twist where Elon isn't actually a robot,
         | but he becomes fully convinced he is. He's already expressed
         | sympathies with arguments we're all living in a simulation,
         | right?
        
       | mabbo wrote:
       | Just in case anyone isn't seeing through the bullshit of Elon
       | Musk, let me lay this out for you:
       | 
       | On April 14th: Twitter stock was worth about $45. Tesla stock was
       | worth about $985. Elon's contract said he would sell $13B worth
       | of Tesla stock (about 13.1m stocks) as part of the plan to buy
       | Twitter for $44B, $54.20 per share. A good deal for the Twitter
       | shareholders even at the time. (23% higher than the market said
       | it was worth).
       | 
       | On May 13th: Twitter stock is worth $40[0]. Tesla stock was worth
       | about $769. So now Elon would have to sell 16.9m shares of Tesla,
       | 28% more, to get a company worth 12.5% less. All signs pointed to
       | both stocks continuing to decline along with all of tech, so the
       | deal was getting worse and worse every day for Elon, and better
       | and better every day for Twitter's shareholders.
       | 
       | Elon Musk will say or do anything he has to in order to cut his
       | losses. There's that well-talked-about $1B get-out-of-deal fee
       | that everyone thinks he'll be able to use. But that's actually
       | not a valid thing- that was only if the SEC blocked the deal.
       | He's contractually obligated to buy the company.
       | 
       | Elon is screwed. All the noise he is making is not going to get
       | him out of it because the Twitter shareholders will hire lawyers
       | just as good and expensive as his- and they are in the right.
       | 
       | [0]And even then $40 is only because the stock was pumped up from
       | Elon saying he's buying it all. If not for that, it would be even
       | lower- meaning this is an even better deal for the shareholders.
        
         | xiphias2 wrote:
         | Even though you are totally right, I can't fault Elon for
         | having a sour grape feeling and trying to renegotiate hard with
         | all the tools he's got. Millions of lawyer fees are nothing
         | compared to the billions of losses he is going to have from the
         | deal.
        
       | hunterb123 wrote:
        
         | jjeaff wrote:
         | I have seen no credible evidence that Twitter is wrong about
         | their numbers. Nor do I even see any possible way an outsider
         | could figure that number out.
        
           | hunterb123 wrote:
           | Have you seen credible evidence that they are right about
           | their numbers?
           | 
           | Without Twitter providing more context and showing their
           | work, the number can't be trusted, thus it isn't credible.
           | 
           | If you claim you have such a low number of bots (5%), you
           | better prove it, otherwise I'll assume the worst and go with
           | 20%.
           | 
           | Anyone that goes on Twitter knows it's above 5%. All 3rd
           | party estimations are well above 5%. Prove it Twitter. Prove
           | it.
        
             | simiones wrote:
             | > If you claim you have such a low number of bots (5%)
             | 
             | Twitter has never made any such claim. It's incredible how
             | hard it is for some people to actually read the extremely
             | explicit process they lay out in their SEC filing.
             | 
             | Twitter has users. A subset of those users are "monetizable
             | daily active users" - that is, users who log in to Twitter
             | from platforms which are capable of showing them ads, or
             | otherwise making money. A subset of users who would
             | normally be counted as mDAUs may be discovered today to be
             | spam bots, may be suspended for other reasons, or may
             | otherwise turn out not to be monetizable - so they are
             | excluded from future mDAUs. A subet of _those_ users have
             | been counted as mDAUs in the past: this is the subset that
             | is estimated to be 5%.
             | 
             | There are plenty of bots on Twitter that are not mDAUs.
             | Some are actually fully legitimate, like the earthquake or
             | weather reporting bots: they are valid Twitter accounts who
             | are bots and who are not counted as mDAUs.
        
             | pcmoney wrote:
             | They literally never claimed this was accurate and even
             | said their methodology could be wrong. Nothing in the
             | contract says anything about bots. They don't have to prove
             | anything at all.
        
               | hunterb123 wrote:
               | > They literally never claimed this was accurate
               | 
               | > and even said their methodology could be wrong
               | 
               | Yeah that's my point, their supplied number is unusable
               | for investors, advertisers, etc.
               | 
               | Combine that with the bot experiences on Twitter, the 3rd
               | party estimates of 10-20% if looks way off.
               | 
               | I don't see why NOW anyone would trust 5%. Diligence has
               | NOW been done and that " _methodology could be wrong_ "
               | looks likely.
               | 
               | -- EDIT (post limit) --
               | 
               | > But that's the whole point - Musk waived his right to
               | do due diligence, so he is pointing at this statement
               | being wrong (and not unusable) as his way out.
               | 
               | @suresk, that's not a thing, but it is a talking point,
               | but I'm not debating that. I'm saying NOW that the
               | diligence is done and we know it's probably not accurate.
               | See my first post.
        
               | suresk wrote:
               | But that's the whole point - Musk waived his right to do
               | due diligence, so he is pointing at this statement being
               | _wrong_ (and not _unusable_ ) as his way out.
        
               | Analemma_ wrote:
               | People keep trying to explain to you why you're wrong and
               | you keep on ignoring them and persisting with your
               | original false statement.
               | 
               | The 5% number claimed by Twitter is _not the percentage
               | of all accounts that are bots_. That has never been the
               | claim. Twitter separates its accounts into  "mDAU"s and
               | "other", and they are claiming 5% of the mDAUs are bots.
               | You cannot falsify this claim with "bot experiences on
               | Twitter", because all the bots you're seeing could be
               | correctly classified as "other". Indeed, nobody outside
               | Twitter can falsify this claim because it's a statement
               | about Twitter's internal classification. The only thing
               | that can falsify Twitter's claim is their own internal
               | data, so that's why discovery is being done.
        
               | hunterb123 wrote:
               | I'm not talking about all bots. I'm talking about mDAU
               | bots. You guys are trying to argue against a point I'm
               | not making.
               | 
               | 3rd party estimations range from 10-20% for mDAU bots,
               | Twitter's is 5%.
               | 
               | Others were defending it by saying "well the number
               | doesn't have to be accurate legally" or "well Musk should
               | have known it's not really accurate".
               | 
               | My counter is that weasel legal wording and logic doesn't
               | give much confidence in Twitter's number at all for
               | FUTURE buyers, advertisers, investors, etc.
               | 
               | They should show their work and prove their number or
               | investors / advertisers / buyers should lower their
               | valuations to reflect somewhere in the middle.
               | 
               | But Twitter hasn't really ever been about the money so
               | the status quo will stay the same.
               | 
               | - edit -
               | 
               | @blitzar: https://sparktoro.com/blog/sparktoro-
               | followerwonk-joint-twit... you can see their methodology
               | here.
               | 
               | Despite two different mDAU classifications, both of the
               | datasets from SparkToro and Followerwonk were about 20%
               | mDAU bots.
        
               | aw1621107 wrote:
               | > 3rd party estimations range from 10-20% for mDAU bots
               | 
               | Could you provide some sources for these estimates? In
               | particular, I'm curious about the methodology and data
               | sources those third-party sources use.
        
               | hunterb123 wrote:
               | https://sparktoro.com/blog/sparktoro-followerwonk-joint-
               | twit...
               | 
               | Their methodology is very detailed. Maybe Twitter can
               | post theirs to give more confidence in their 5%.
               | 
               | They used multiple datasets and posted the calculated
               | mDAU for each.
        
               | blitzar wrote:
               | > 3rd party estimations range from 10-20% for mDAU bots,
               | Twitter's is 5%.
               | 
               | And ... 3rd partys are differentiating a twitter account
               | from a mDAU how? Hint: they are not.
        
             | toast0 wrote:
             | It would be hard for them to be wrong about their numbers,
             | given how subjective they are.
             | 
             | Their methodology is pick 100 users from the mDAU every
             | day, then have a human decide botornot.
             | 
             | If you wanted to show those numbers were wrong, you might
             | ask to see those specific users and come up with your own
             | botornot score. Or if you thought those weren't inaccurate,
             | but maybe not a representative sample, you might ask for
             | 10,000 users counted as mDAU on a specific day (or each
             | day) and botornot them and see if that matches the 100
             | sample. If you didn't trust twitter's sampling, you could
             | ask for the full list of users and sample it yourself
             | before botornot.
             | 
             | But instead, it seems like they were trying to count
             | botornot for the full population without considering if
             | they were in mDAU or not, which makes it a flawed
             | comparison. The counterclaim says mDAU isn't the
             | appropriate measure for some of the alternate revenue plans
             | Musk was considering, and that's probably true, but it's
             | not relevant to twitter's current business and if their
             | numbers were accurate to the degree they were measured.
        
         | yieldcrv wrote:
         | > Can we start a tip jar every time someone says the "he signed
         | away his due diligence" talking point?
         | 
         | I would love to see how Delaware Chancery Court treats this
         | concept. So going in front of a judge is the best way to find
         | out!
         | 
         | I routinely accept contracts and agreements with parts I know
         | I'm going to ignore or violate just because I understand the
         | jurisdiction. It's more efficient than negotiating and actually
         | having lawyers making revisions for months at great cost.
         | 
         | I'm not familiar with this nuance of Delaware but its not
         | outside of the realm of possibility that there is an argument
         | that can help Elon.
        
         | pwinnski wrote:
         | Given the language twitter surrounded that number with, they
         | probably could. They called out that it was uncertain,
         | described how they estimated it in detail, and stated that
         | reality could be higher or lower.
         | 
         | Given all of that, they could have said the number was .01% or
         | 90%, and neither would have been misrepresentation.
        
           | hunterb123 wrote:
           | Exactly, so what's the point of Twitter's number or using it
           | for valuation?
           | 
           | Now knowing it's surrounded by loose language because the
           | number is so loose, assume the worst prediction, which is
           | 15-20% from 3rd parties.
        
       | mro_name wrote:
       | sensible guess, isn't it?
        
       | leobg wrote:
       | TL;DR:
       | 
       | > Specifically, Musk used "an Internet application called the
       | 'Botometer'--which applies different standards than Twitter does
       | and which earlier this year designated Musk himself as highly
       | likely to be a bot," Twitter said.
       | 
       | Note the "Earlier this year". Article continues:
       | 
       | > This morning, Botometer gave Musk's account a rating of 1.2 out
       | of 5, indicating that Musk is more "human-like" than bot-like as
       | of today.
       | 
       | The legal brief continues:
       | 
       | > The Botometer thus does not even purport to apply Twitter's
       | definition of a false or spam account. In fact, some bots (like
       | those that report earthquakes as they happen or updates on the
       | weather) are often helpful and permissible under Twitter's
       | platform manipulation and spam policy, to which Twitter
       | respectfully refers the Court.
       | 
       | The latter, in my estimate, is irrelevant to the question here.
       | Because the metric in question is "monetizable daily active ". If
       | one person runs, besides their personal profile, 10 bots, it
       | doesn't matter if those bots are all "permissible" according to
       | Twitter's terms of service. These accounts still constitute, from
       | the point of an advertiser as well as from the point of
       | investors, just one monetizable daily active user, and not
       | eleven.
        
       | AllegedAlec wrote:
       | I'm still convinced he's just gonna use it to suggest that a
       | judge should meet him in the middle; make him buy the company,
       | but use the allegations of large numbers of bots to reduce the
       | price.
        
         | koheripbal wrote:
         | Both are probably true. There are likely more bots than Twitter
         | admits, and Musk will likely agree to buy Twitter for a lower
         | price (in fact, I believe he outright said that).
        
         | ncallaway wrote:
         | I don't think there's any world where that happens.
         | 
         | I think a judge would either order specific performance (e.g.
         | do the thing the contract says, as specified in the contract),
         | _or_ we're talking about damages (e.g. pay Twitter $X, but you
         | don't get anything in return).
         | 
         | I think a purchase at a lower price would probably only come
         | from a settlement between the parties, and... I think that's
         | likely. Twitter didn't want to be purchased in the first place,
         | and now has Musk over a barrel. I think Twitter is going to use
         | the threat of specific performance to try and extract a damages
         | settlement greater than the contractual $1B from Musk.
        
           | bambax wrote:
           | > _I think Twitter is going to use the threat of specific
           | performance to try and extract a damages settlement greater
           | than the contractual $1B from Musk._
           | 
           | Yeah that's what makes the most sense. Musk doesn't want to
           | buy Twitter anymore, forcing him to buy it is not a very good
           | solution. It's possible to do, and certainly enforceable, but
           | not a desirable outcome for anyone.
           | 
           | But, having him pay $10 or even $15 billions as a price to
           | renege on his word, on the contrary, is an excellent outcome.
        
             | simplicio wrote:
             | Presumably if the fine is bigger then the delta between the
             | current share price and what Musk offered, he'd be better
             | off buying the company and then trying to turn around and
             | sell it then paying the fine.
             | 
             | Similarly, if the fine is smaller, Twitter share-holders
             | would be better off just forcing him to buy and forgoing
             | the fine.
             | 
             | So a settlement number seems kinda hard to agree on, unless
             | they have differing opinions on what the company is
             | currently worth.
        
               | ryukoposting wrote:
               | If I were a Twitter share-holder, I'd be fine with
               | getting a slice of a $10B settlement, keeping my stake in
               | a successful social media & analytics company, banning
               | Musk's account, and watching him squirm. I don't know if
               | it'd be a perfect financial move, but it would feel good.
        
               | bambax wrote:
               | True. However there is a distinct possibility that Musk
               | could run Twitter into the ground out of spite, if he's
               | made to buy it. So there's a negative externality to
               | force him to buy.
               | 
               | A fine close to the spread, but still a bit lower,
               | accounts for that.
        
           | matwood wrote:
           | I agree there won't be any meet in the middle. Neither Musk
           | nor Twitter want Musk to own Twitter now though. What's
           | happening today is negotiating the break up fee which starts
           | at the difference between current market cap and 54B (~22B
           | today).
           | 
           | The accelerated trial date put Musk on notice. The SEC may
           | not take enforcing the rules seriously, but Delaware has made
           | it their business to enforce the rules that make it
           | attractive for big corps to incorporate under. I don't think
           | this makes it to trial where Musk will get destroyed, and bet
           | they end up settling in the ~10B range.
        
             | metadat wrote:
             | Why settle for only $10B? Musk's shenanigans have resulted
             | in significant long-term damage to Twitter in the form
             | uncertainty and distracting Twitter from focusing on
             | operating and growing the business (because they've changed
             | internal policies / direction, and shared a lot of
             | information with Musk, as per the acquisition agreement).
             | 
             | It's only fair for mullosk to be on the hook for the full
             | purchase or at the very least the full differential.
             | 
             | We'll see what happens in about two months.
        
               | rchaud wrote:
               | $10b cash will go a long way to remedying that damage.
               | They might even not ban Musk's account as a show of
               | goodwill. Let him continue to bloviate impotently about
               | the evils of censorious social media.
        
             | hef19898 wrote:
             | Musk got himself in between a rock and hard place here.
             | Either he has to buy Twitter at a higly inflated price with
             | all kinds of efdects on his Tesla shares and, maybe, even
             | SpaceX ownership. And he looks like a bad business man.
             | 
             | Or he vets out of the deal, has to pay billions for nothing
             | and still looks like a bad business man.
             | 
             | Since all his wealth is based on Tesla, and more
             | specifically on Tesla's public perception as tech company
             | and not a car maker, all of which in turn is based to
             | significant extent on yhe public's perception of Musk as a
             | genius, this change in public perception is incredibly
             | dangerous for Musk.
        
               | ryukoposting wrote:
               | > And he looks like a bad business man.
               | 
               | Musk already looked like a corporate bottomfeeder to
               | anyone who was actually paying attention to his behavior.
               | 
               | You're right, though. Obviously, other facets of this
               | situation were going to affect Tesla, but I hadn't really
               | thought about the effects on Musk's reputation could
               | impact his companies' share prices. TSLA is as much a
               | cult of personality as it is a stock.
        
         | EdiX wrote:
         | The funny thing is that stalling is probably enough to pay
         | less. He's partially financing the operation by selling tesla
         | stocks, if the market goes back up and takes tesla stock price
         | up with it then buying twitter will cost less money.
         | 
         | My opinion is this is just a stalling tactic, he thinks the
         | market will recover by next year and this is a pretext to wait
         | until then.
        
       | polishdude20 wrote:
       | How much of this show and dance is really about covering up
       | something else that Musk did? Is it possible this is done to
       | overshadow other newsworthy stories that would be even more
       | detrimental to his reputation?
        
         | bhouston wrote:
         | It will be an incredibly expensive show and dance. Not sure it
         | is really worth it.
        
       | pcmoney wrote:
       | Musk seems like a smart guy who got overconfident and out of his
       | area of expertise and made a series of incredibly stupid
       | decisions. Pretty much every legal and financial professional
       | without a vested Musk related interest seems to think similarly.
       | Matt Levine has been lights out on this topic. Everyone knows his
       | bot claims are just FUD to try and weasel out of writing a check
       | he no longer has the guts to cash with current valuations.
       | 
       | Prediction: They settle for a couple billion OR Musk buys them at
       | a slight discount to the currently agreed price. Maybe $49.69
       | because he is a clown?
       | 
       | Twitter replies to counter claims:
       | https://s22.q4cdn.com/826641620/files/doc_news/2022/08/Twitt...
        
         | chowells wrote:
         | Where was there ever evidence Musk is a smart guy? His only
         | skills appear to be self-aggrandizement and being born rich.
         | Musk is proof that our economic system rewards being already
         | rich, not creating value.
         | 
         | He did not found Paypal, Tesla, SpaceX, or anything else that's
         | been successful with his name attached. He did not contribute
         | any tech to those efforts. At best he's contributed publicity,
         | but it's only ever with a flavor of celebrating how great he
         | is.
         | 
         | He's an example of an utter failure of capitalism. I suppose it
         | shouldn't surprise me that he's celebrated for it. Everyone
         | wants to fail like him. But most people skipped the step where
         | they're born rich, and it's just too hard to recover from that
         | miss.
        
           | pcmoney wrote:
           | I think that's a little much. Definitely was estranged from
           | his dad and it seems for good reason. No evidence his alleged
           | childhood wealth funded his adult businesses.
           | 
           | Founding doesnt matter as much as making them as viable as
           | they are today. Seems to have a knack for something, either
           | PR, hiring others, repeatedly betting the farm, slamming his
           | head into a wall etc. whatever it is its on average working.
           | 
           | His companies create thousands of jobs and pay billions in
           | taxes, capitalism seems to be doing its thing very well. (Yay
           | global reduction in poverty!)
           | 
           | Friends who have worked with him say he is very sharp and
           | extremely relentless and hard working. I don't think he's a
           | pure confidence man. I do wonder if he has had a bit of a
           | mental break in the past 5yrs or so.
        
         | Ekaros wrote:
         | I have understood the same. This is Delaware, meaning they
         | aren't going to give special treatment if they want to keep
         | companies there. Deal is a deal. And Musk will pay, now how
         | much might vary, but it will not be 1 billion cheap.
        
         | nathanvanfleet wrote:
         | Do you mean he only recently got overconfident? Just a reminder
         | that he already got fined $40 million for his "going private at
         | 420" joke.
        
           | colinmhayes wrote:
           | The private at 420 thing was absolutely worth $40 million. It
           | helped elevate Tesla to the meme stock stratosphere even more
           | than they already were. His Twitter antics turned a 200
           | billion dollar company into a trillion dollar one.
        
             | Bubble_Pop_22 wrote:
             | > It helped elevate Tesla to the meme stock stratosphere
             | even more than they already were. His Twitter antics turned
             | a 200 billion dollar company into a trillion dollar one
             | 
             | Zoom out! Everybody loved GagnamStyle and Baby Shark too,
             | but they are not getting on radio and people would be
             | indifferent to the disappearence of the artist who made
             | those songs.
             | 
             | MarketCap is a flawed measure for tons of reasons (in my
             | opinion FCF is king) but if you want to use such flawed
             | measure then time spent in the S&P500 would be a meaningful
             | way to go about it.
             | 
             | Tesla has been in the SP500 for how long? 1.5 years?
             | 
             | If JPMorgan went bankrupt tomorrow you'd see people
             | literally in the streets crying (for a whole bunch of
             | reasons both at the macro and micro level) much like when
             | Michael Jackson died. If Tesla went bankrupt tomorrow it
             | would be like if PSY of GagnamStyle fame died, a bunch of
             | hardcore devote followers would mourn but the world would
             | move on pretty quickly.
        
             | pcmoney wrote:
             | Sounds like twtr is worth $800B then? ;)
        
           | irthomasthomas wrote:
           | And that court case is scheduled the week after this one.
           | Musk has 3 major trials in October.
        
           | jakelazaroff wrote:
           | Just to put this in perspective: if your net worth is
           | $100,000, this is the equivalent of being fined $14.
           | 
           | (Based on Elon's net worth of $278 billion, according to
           | Google)
        
             | kergonath wrote:
             | Still not a great example of a supposedly superior
             | intellect.
        
         | pcmoney wrote:
         | By the downvotes it Looks like musk fan boys cant handle their
         | lord and savior being called out for making a series of dumb
         | decisions.
        
       | matt_s wrote:
       | > "To the contrary, Musk forwent all due diligence--giving
       | Twitter twenty-four hours to accept his take-it-or-leave-it offer
       | before he would present it directly to Twitter's stockholders,"
       | Twitter wrote.
       | 
       | Bot/spam account analysis is just trying to do PR spin. Musk has
       | no legal standing to use any of that to back out of the merger.
       | 
       | > The five-day trial is now scheduled to begin on October 17
       | 
       | So we will see about 2 more months of PR campaigns from Musk and
       | Twitter about the case.
        
         | convery wrote:
         | > Musk has no legal standing to use any of that to back out of
         | the merger.
         | 
         | The claim is that Twitters SEC filings had bots at ~5%, and
         | Musk made the investment based on that. From the leaked
         | recordings of staff, everyone knew that the percentage was much
         | higher.
        
           | colinmhayes wrote:
           | That is a misreading of twitters filing.
        
           | megablast wrote:
           | Completely wrong.
        
           | matt_s wrote:
           | I made a bad analogy before about this, if Twitter were a
           | house Musk was buying, he waived the right to back out of the
           | deal based on home inspections (bots/spam accounts). He still
           | can analyze bots/spam as much as he wants (as he should) but
           | from the article it has no basis in the legal contract
           | signed.
           | 
           | > The merger agreement contained no references to false or
           | spam accounts, and Musk didn't ask Twitter for any
           | information to verify the number of spam accounts before
           | signing the merger deal.
        
           | phailhaus wrote:
           | Nope, Twitter has been very clear in their filings:
           | 
           | > Additionally, our calculation of mDAU is not based on any
           | standardized industry methodology and is not necessarily
           | calculated in the same manner or comparable to similarly
           | titled measures presented by other companies. Similarly, our
           | measures of mDAU growth and engagement may differ from
           | estimates published by third parties or from similarly titled
           | metrics of our competitors due to differences in methodology.
           | 
           | Musk can't barge in and say "but MY calculations have a
           | HIGHER number!" because Twitter already acknowledged this
           | could be the case. Musk decided to buy anyways.
           | 
           | [1] https://www.sec.gov/Archives/edgar/data/1418091/000141809
           | 120...
        
             | delecti wrote:
             | > Musk can't barge in and say "but MY calculations have a
             | HIGHER number!" because Twitter already acknowledged this
             | could be the case
             | 
             | Not to mention that some of Musk's publicly stated reasons
             | for the purchase are to reduce the bot problem to improve
             | Twitter's value.
        
           | jcranmer wrote:
           | That's not what the SEC filings say. The SEC filings say that
           | up to 5% of the number of monetizable daily active users
           | (i.e., the number of users _after eliminating bots_ ) may be
           | bots--or, in other words, the techniques that Twitter uses to
           | detect bots have up to a 5% false negative rate.
           | 
           | No one is saying that 5% of Twitter's users is bots, except
           | for when Musk is trying to put those words into Twitter's
           | beak.
        
             | martin8412 wrote:
             | They don't just say up to five percent are bots - They say
             | that their methodology might be flawed and the actual
             | number could be higher or lower.
        
             | hef19898 wrote:
             | In addition, one could make the claim that monetizeable
             | bots cannot have a material adverse effect since they are
             | still generating revenue and profits.
        
               | saalweachter wrote:
               | I mean, the point of Twitter's statement is to try to
               | bound the risk. They could fix their methodology, or
               | their advertisers could sue them for charging them for
               | bot views, and the magnitude of the risk is ~5% of their
               | mDAU, according to Twitter.
               | 
               | A company with 95% of its revenue coming from bot-clicks
               | and a company with 5% of its revenue coming from bot-
               | clicks might make the exact same amount of money, but one
               | is substantially more screwed in the future.
        
             | hartator wrote:
             | > No one is saying that 5% of Twitter's users is bots,
             | except for when Musk is trying to put those words into
             | Twitter's beak.
             | 
             | "In its disclosures, Twitter claims to have nearly 238
             | million monetizable daily active users ("mDAU") who
             | participate on the platform, and tells its investors that
             | this userbase metric is a bellwether for its ability to
             | generate revenue and the "best way to measure [Twitter's]
             | success . . . ."
             | 
             | I think they are talking about this number being
             | significant less than 238 million.
             | 
             | "They show that in early July fully one-third of visible
             | accounts may have been false or spam accounts--resulting in
             | a conservative floor of at least twice as many false or
             | spam accounts as the 5% that Twitter discloses for the
             | entire mDAU population."
             | 
             | They are talking about the same after bot removal 5%.
        
       | usgroup wrote:
       | Would their be any benefit to Musk going through this ordeal
       | meanwhile fully intending to buy Twitter all along?
        
         | h2odragon wrote:
         | I think it may be: "Don't throw me in that briar patch."
         | 
         | The more vocal Twitter users were quite dismayed by the
         | prospect of Musk owning their favorite forum. There was talk of
         | getting the Government to block a deal somehow because "one
         | person can't be allowed to own the public square."
         | 
         | Now they're as likely to be overjoyed if a court "forces" him
         | to conclude the deal, even with a slightly smaller price than
         | originally advertised. Whatever principles were served by the
         | initial objection are less important than Dunking on Elon now
         | that he's become pariah.
        
         | Ekaros wrote:
         | I suppose he could save some billions.
        
           | usgroup wrote:
           | It seems to me that any reduction in price would also cause a
           | reduction in value, no? I.e pay less because it's worth less?
        
             | Ekaros wrote:
             | Yes, but if he is taking it private that doesn't change
             | anything.
             | 
             | I have no idea what is his plan to make money with Twitter,
             | but that is why I'm not multi-billionaire.
        
         | pinko wrote:
         | Yes, he could end up negotiating a lower price. Even a tiny
         | discount might make it all worthwhile.
        
           | ncallaway wrote:
           | It will be hard to negotiate a lower price while a lawsuit
           | about specific performance is still open.
           | 
           | Since Twitter has a real (not guaranteed, but not terribly
           | unlikely) of having a court force Musk to buy Twitter at the
           | original price, I don't think they'd seriously consider
           | selling at a massive discount. I could see a small haircut to
           | the price in a settlement, so maybe that's the angle.
           | 
           | But... with the threat of specific performance looming, I
           | just don't see Twitter moving the needle on their price much.
        
             | kshacker wrote:
             | Real chance does not mean 100% chance. As long as there is
             | a threat (and fear) of losing, negotiations can happen.
        
           | [deleted]
        
       | coffeeblack wrote:
       | I don't think that I trust Twitter on this.
       | 
       | Let's wait for the courts to look at the topic.
        
       | hartator wrote:
       | "Twitter also ties mDAU goals to executive compensation. In 2020
       | Twitter based its executives' cash bonus pool on revenue,
       | operating income, and adjusted EBITDA. After Twitter missed those
       | targets in 2020, and only 32% of the cash bonus pool was funded,
       | Twitter determined that mDAU (a highly manipulable number) should
       | be considered in determining whether executives received these
       | bonuses. Following that change, in 2021, 100% of this executive
       | bonus pool was funded. And since Twitter's adoption of mDAU over
       | MAU, it has reported ten straight quarters of "growth" despite
       | stagnant financial results"
       | 
       | There is also this claim. Not sure why we should Twitter
       | executives benefit of the doubt when they literally tweak metrics
       | to get more money for themselves.
        
         | nojito wrote:
         | None of that matters when he waived due diligence.
         | 
         | Again all of that information is public knowledge through
         | twitter's SEC filings.
        
           | hartator wrote:
           | > None of that matters when he waived due diligence.
           | 
           | Musk didn't though:
           | 
           | "Despite public speculation on this point, Mr. Musk did not
           | waive his right to review Twitter's data and information
           | simply because he chose not to seek this data and information
           | before entering into the Merger Agreement. In fact, he
           | negotiated access and information rights within the Merger
           | Agreement precisely so that he could review data and
           | information that is important to Twitter's business before
           | financing and completing the transaction."
           | 
           | > Again all of that information is public knowledge through
           | twitter's SEC filings.
           | 
           | Can you point to the paragraph where Musk waive due
           | diligence?
        
             | brandonagr2 wrote:
             | Twitter replied seeming to say the clause was to provide
             | information only for the purpose of consummating the deal,
             | information that would cause the deal to fall apart by
             | outing their fraud wouldn't be covered by the clause as
             | something they have to hand over.
        
             | simiones wrote:
             | > Can you point to the paragraph where Musk waive due
             | diligence?
             | 
             | Here it is mentioned in his own legal filing [0]:
             | 
             | > 60. Believing that due diligence processes can be costly
             | and inefficient, the Musk Parties instead focused on
             | bargaining for contractual representations that the
             | information they relied upon in deciding to acquire Twitter
             | is accurate.
             | 
             | Also, by definition, due diligence is something that
             | happens _before_ signing a contract.
             | 
             | [0] https://cdn.arstechnica.net/wp-
             | content/uploads/2022/08/musk-...
        
         | [deleted]
        
       | smeej wrote:
       | To be fair, Musk himself stated when he hosted SNL that he "runs
       | human on 'emulation mode,'" so calling himself a bot might be
       | consistent.
        
       | [deleted]
        
       | jcranmer wrote:
       | I think Musk's counterclaims are more interesting than Twitter's
       | response. Here's the summary of the five counterclaims:
       | 
       | * Twitter committed fraud by lying to the SEC about the mDAU
       | numbers with the intent of inducing Musk to buy Twitter at an
       | inflated price. No, really, this is the allegation (see
       | paragraphs 202-206).
       | 
       | * Count 2 is that Twitter committed [Texas fraud statute] by
       | lying when it offered its shares. It's shotgun-pled, so I don't
       | know which specific statements are supposed to be wrong, but I'm
       | imagining it's basically the previous count recast under a
       | different statute.
       | 
       | * Count 3 says that Twitter broke the contract by failing to
       | provide information.
       | 
       | * Count 4 says that Twitter broke the contract by instituting a
       | hiring freeze. [not gonna fly, especially when Musk admitted that
       | Twitter gave him warning of what it was doing and Musk didn't
       | respond. Did I mention that Musk's answer admits far more than I
       | would have expected?]
       | 
       | * Count 5 is pretty please declare that Twitter lying about mDAUs
       | is a materially adverse event that is cause to break the
       | contract.
       | 
       | I still can't get over the banana-pants insanity of the first
       | count... arguing that Twitter lied about its numbers for years
       | specifically so that someone would buy it at an inflated price?
        
         | nomel wrote:
         | > I still can't get over the banana-pants insanity of the first
         | count
         | 
         | As someone who's unfamiliar with this, could you explain what's
         | banana-pants insane about a company inflating their hard-to-
         | discover numbers, for profit? I thought that was,
         | unfortunately, banana-pants standard? For example, the fiction
         | that is Twitter or Reddit's user count.
        
           | jjeaff wrote:
           | Whether they inflated their numbers or not, the burden would
           | be on Musk to prove that and it would be completely
           | impossible to do that with a 3rd party tool. You are a
           | monetizable user on Twitter if you just log in and read
           | tweets. Something that no 3rd party tool could possibly
           | track.
        
             | zinekeller wrote:
             | > You are a monetizable user on Twitter if you just log in
             | and read tweets.
             | 
             | Actually, even logged-out users (until they forced everyone
             | to log in to read timelines) are monetizable, so Musk is
             | really trying to make something to get out.
        
               | eastbound wrote:
               | I'm surprised that someone clever enough to run a
               | business, takes _that_ excuse to get out of a deal. He
               | must have been tired.
               | 
               | Any businessman who gets into such a position, even by
               | mistake, would have at least taken this opportunity to
               | require Twitter's methodology on counting bots an expose
               | its flaws. The claim would be something tangible like
               | "This account is a bot and your criteria falsely counts
               | it as a user."
               | 
               | Not "Really there are 5% bots? Everybody, look!" He looks
               | more like an engineer who can't stand the fact that
               | ballpark numbers are a decent way to do business in a lot
               | of cases.
        
               | evan_ wrote:
               | Another explanation could be, he's not actually that good
               | at running a business
        
           | bmitc wrote:
           | It doesn't matter because Musk waived any due diligence when
           | he signed the contract to buy. He literally said, via
           | contract, that he waived due diligence, signed on to buy, and
           | then a mere week later said that Twitter isn't providing the
           | data he's requesting. Again, he was whining about not
           | receiving data that he specifically waived access or rights
           | to. Twitter already provided him with much more than they had
           | to, which was nothing.
           | 
           | Another point is that many of the bots on Twitter are pro-
           | Tesla and pro-Musk. Musk knows this but still whines about
           | bots despite knowingly benefiting from them. He is a
           | charlatan in every sense of the word.
        
           | benj111 wrote:
           | The fact that musk tweeted that he was buying Twitter to fix
           | the bot problem.
           | 
           | So the fact that he's using his reason for buying to try and
           | get out of buying seems... Insane.
        
           | jcranmer wrote:
           | Twitter is a public company (and has been for 9 years), and
           | has maintained the 5% mDAU disclaimer in its required annual
           | reports for years. I don't know off-hand how long it's been
           | doing so, but probably at least 4 or 5 years.
           | 
           | The allegation is saying not only that Twitter has been lying
           | about that number--for years, on documents that land it in
           | legal hot water if it's been lying--but that it was doing so
           | specifically so that Musk would buy Twitter at an inflated
           | price. The insane part is really that specific intent, not
           | the lying about the numbers.
        
             | loceng wrote:
             | ... "but that it was doing so specifically so that Musk
             | would buy Twitter at an inflated price."
             | 
             | The insanity is people being perfectionistic in that it was
             | specific intent to target him to buy it - even if it says
             | "him" - it's absurd that people are taking that literally,
             | and not simply to "make it seem valuable for someone to
             | buy."
        
             | flerchin wrote:
             | Well twitter would have been obscuring bots to obtain an
             | inflated purchase price _by anyone_.
        
             | thr0wawayf00 wrote:
             | FWIW, academic research has questioned the 5% number for
             | years. USC and IU put out a report 5 years ago that
             | believed the upper bound for fake accounts was 15%[0]. This
             | isn't a new allegation.
             | 
             | 0: https://www.cnbc.com/2017/03/10/nearly-48-million-
             | twitter-ac...
        
               | kergonath wrote:
               | From your source:
               | 
               | > our estimates suggest that between 9% and 15% of active
               | Twitter accounts are bots
               | 
               | From Twitter: "roughly 5% of our monetizable daily users
               | are bots".
               | 
               | Both can be true at the same time, and it does not mean
               | that Twitter lied.
        
               | dahdum wrote:
               | Twitter's lawsuit mentions this, stating only they know
               | who is monetizable. IIRC Musk's lawyers deliberately push
               | the same false equivalency in their filing.
        
               | [deleted]
        
               | jjoonathan wrote:
               | 5% of mDAU is a false negative rate.
               | 
               | 5% of users is not a claim that Twitter made.
        
               | jcranmer wrote:
               | As explained many times by many people, the 5% is not the
               | number of bots on Twitter. It is the false negative rate
               | of Twitter's bot detection algorithms.
        
           | daed wrote:
           | One point not mentioned (and I'm just paraphrasing Levine
           | from Money Stuff here):
           | 
           | It's crazy because it would probably be BETTER if you had
           | more bots. Then you could say that your revenue per user was
           | higher and you could argue that you had more room for growth.
           | So, if anything, lying and OVERestimating the bot count would
           | help your valuation more.
        
             | Ferret7446 wrote:
             | Not really, because the revenue comes from ads not users.
             | Twitter makes profit from ad buyers thinking they are
             | reaching many users. The "revenue per user was higher" you
             | mention is actually "cost per ad impression" and ad buyers
             | want that to be low.
        
           | phailhaus wrote:
           | It's insane because Twitter has been very careful to explain
           | that the 5% number is not some sort of "promise".
           | 
           | > Additionally, our calculation of mDAU is not based on any
           | standardized industry methodology and is not necessarily
           | calculated in the same manner or comparable to similarly
           | titled measures presented by other companies. Similarly, our
           | measures of mDAU growth and engagement may differ from
           | estimates published by third parties or from similarly titled
           | metrics of our competitors due to differences in methodology.
           | 
           | They covered themselves very clearly, and Musk has no
           | standing here. He knew this, and decided to waive his due
           | diligence and buy anyways.
           | 
           | [1] https://www.sec.gov/Archives/edgar/data/1418091/000141809
           | 120...
        
             | bostonsre wrote:
             | Twitter added a loop hole saying that their data might be
             | incorrect. It seems disingenuous to absolve them of all
             | sins if their data is hugely incorrect to the point where
             | it's fraudulent just because they added that loop hole.
        
               | zinekeller wrote:
               | > It seems disingenuous to absolve them of all sins if
               | their data is hugely incorrect to the point where it's
               | fraudulent just because they added that loop hole.
               | 
               | If there's an actual industry standard then you could
               | argue that Twitter is lying. However as everyone in the
               | legal community knows there are two important concepts
               | here: wilfulness and negligence. Did Twitter willfully do
               | this or is this just because there isn't an actual
               | standard methodology but tried to do their best-effort
               | anyways? Is Twitter aware of problems in its methodology
               | that can be solved but were left as-is? Conversely, did
               | an external party intentionally misinterpreted those
               | numbers so that that party can paint a different picture
               | that what Twitter actually claims?
        
               | bostonsre wrote:
               | Yea, makes sense. Seems like it will be hard to prove
               | malice over incompetence and vice versa.
        
               | phailhaus wrote:
               | There's no standard or foolproof way to find bots,
               | otherwise we'd be able to just ban them all. It all
               | requires judgement. Twitter's statement is acknowledging
               | this fact and legally covering themselves from people
               | just like Musk who might go "well I have my own
               | calculation metric and it says there's more."
        
               | jacquesm wrote:
               | Maybe, but that's just not how it normally works and
               | Musks reality distortion field does probably not include
               | the courts. You sign a terms sheet conditional on DD and
               | only afterwards do you move to put in a binding offer.
               | Doing it in a different order is a waste of effort, after
               | all, what's the point of doing DD after you've already
               | made a binding offer? You can't use it to change the deal
               | parameters and you can't use it to break it up.
        
             | 8ytecoder wrote:
             | He claimed to buy Twitter, specifically, to clean it up; to
             | get rid of bots. That was his stated goal.
             | 
             | "If our twitter bid succeeds, we will defeat the spam bots
             | or die trying!"
             | 
             | https://twitter.com/elonmusk/status/1517215066550116354
        
               | kennxfl wrote:
               | Apparently Twitter subpoenaed Musk's friends and
               | colleagues who were actively tweeting about the deal with
               | what is believed to be an attempt to prove he encouraged
               | his posse tweet negatively to force a lower price.
        
               | threeseed wrote:
               | David Sachs, prominent VC was one of those subpoenaed and
               | he definitely seemed a little sensitive about it:
               | 
               | https://twitter.com/DavidSacks/status/1554258141876932608
        
               | SilverBirch wrote:
               | This just reminds us - if you had subpoenaed 5 average
               | people they would've responded with honest accounts of
               | what happened, under fear of the law. Subpoena 5 of Elon
               | Musk's friends and you're answering questions from the 5
               | best paid law firms in the country. Throw the fuck in
               | jail.
        
               | madeofpalk wrote:
               | The weird part is that "twitter has lots of spam bots" is
               | a completely independent claim from "5% of the users who
               | use our website or 1st party apps are bots".
        
             | loceng wrote:
             | I imagine the argument is whether the method Twitter used,
             | and was seemingly acceptable by SEC, is ethically, morally,
             | or logically a reasonable measure.
             | 
             | E.g. Can they 100% say that there are less than 5% bot
             | accounts, or is that 5% number being pulled out of their
             | ass - and saying "less than 20% of accounts are bots" would
             | hold as much water? That is therefore then a
             | misrepresentation, fraud IMHO - and stockholders should be
             | suing not only Twitter but also the SEC.
        
             | nonethewiser wrote:
             | That's not what the original poster implied. He implied
             | it's crazy because of the duration and specific purpose of
             | the supposed lie.
        
               | pavon wrote:
               | Doesn't seem strange to me. If I am suing a company for
               | false advertising I'll claim that their behavior was
               | aimed at inducing _me_ to purchase the product at an
               | inflated price. Not because I think they were
               | specifically conspiring to target those lies directly at
               | me personally, but because I am the one that is a party
               | to the lawsuit. If Twitter was lying to inflate the stock
               | price in general, then they were inducing everyone to buy
               | at an inflated price and Musk is one of those people.
        
           | fooey wrote:
           | There's a whole assumption that bots are a net negative to
           | the platforms value besides any arguments over how many of
           | them there are.
           | 
           | As a human, it's annoying to get get a reply notification
           | only to discover it was bot spam, but from the platform
           | perspective that bot just created user activity and content
           | for you for free.
           | 
           | I have a theory that the most embarrassing thing to come out
           | of this might be that Twitter doesn't really care about bots
           | much more than issuing platitudes that they care about bots
           | to assuage the user base.
        
             | ryantgtg wrote:
             | I have like 9 twitter bots and they're all cool and
             | interesting. I wonder if Musk's tool differentiates between
             | cool and uncool bots.
             | 
             | In the past I tried to write bots that do things like reply
             | to people, but that is a violation of the TOS and twitter
             | would immediately identify and ban the account.
        
               | fooey wrote:
               | The tool he used to identify bots identified his own
               | account as a bot, so I'm gonna go out on a limb and guess
               | it's not very intelligent (or is hyper-intelligent)
        
             | blackoil wrote:
             | If there are too many bot activities, user may completely
             | turn off notifications and reduce the usage.
        
         | Sebb767 wrote:
         | > arguing that Twitter lied about its numbers for years
         | specifically so that someone would buy it at an inflated price?
         | 
         | On one hand, venture-funded hockeystick-startups like Twitter
         | definitely aim for a quick exit to make cash, so it's not
         | totally out of the blue. On the other hand, Twitter is publicly
         | traded and therefore _already had_ its exit.
        
           | mywittyname wrote:
           | And the Twitter board was also very much publicly saying,
           | "don't buy us."
        
             | Sebb767 wrote:
             | Clearly reverse psychology, confirming that this was indeed
             | their play all along!
        
           | nerdawson wrote:
           | There will be members of staff who's job depends on the value
           | of the stock and countless more with total comp tied to it.
        
         | codingdave wrote:
         | I don't honestly believe either side cares about the merits of
         | the legal case - this is all just a very public and showy
         | exercise to negotiate on a new price during a settlement.
        
           | madeofpalk wrote:
           | > this is all just a very public and showy exercise to
           | negotiate on a new price during a settlement.
           | 
           | Why would Twitter want to negotiate on a new price? There's
           | already the agreement at a high price - why would they go
           | lower?
        
           | koheripbal wrote:
           | That's the nature of almost all civil cases - they are
           | pretexts for negotiations.
           | 
           | BUT, accusing Twitter of actual _federal and state crimes_ is
           | going to raise the awareness of several regulatory bodies, so
           | this is going to get hairy.
        
             | _djo_ wrote:
             | No it won't, because those are baseless allegations thrown
             | out in order to add more noise and confusion.
             | 
             | You might get some red state DA eager for some publicity to
             | make a song and dance about it for a bit, but that's it.
             | 
             | If Musk's team could produce actual data and evidence of
             | criminal law breaches they'd be reporting them to
             | authorities not adding them as minor points in a civil suit
             | filing in Delaware.
        
           | dahdum wrote:
           | Twitter has the facts and the law on their side, so they most
           | certainly care about the merits.
        
           | nemothekid wrote:
           | > _I don 't honestly believe either side cares about the
           | merits of the legal case_
           | 
           | TWTR is only down 1.6% YTD.
           | 
           | * SNAP is down 80%
           | 
           | * PINS is down 40%
           | 
           | * FB is down 50%
           | 
           | A good chunk of TWTR's current valuation is now being propped
           | up by Elon's buyout offer. Elon could be looking at paying a
           | 100-125% premium on what should be the fair market value for
           | Twitter. Twitter's board _should care deeply_ about getting
           | as much value here as possible.
        
         | nerdawson wrote:
         | Wouldn't the first count apply to anyone interested in buying
         | shares in Twitter? Artificially inflating the mDAU figure makes
         | the investment appear more attractive and valuable than it
         | really is.
        
           | piker wrote:
           | Seems like this is the correct answer. Musk is just putting
           | himself in that class.
        
         | zinekeller wrote:
         | > Twitter committed fraud by lying to the SEC about the mDAU
         | numbers with the intent of inducing Musk to buy Twitter at an
         | inflated price.
         | 
         | What is that commonly-used aphorism? "One man's trash is
         | another man's treasure"? Like, _even if this is true_ , Musk
         | didn't do (and subsequently waived) due diligence.
         | 
         | > No, really, this is the allegation
         | 
         | No further comment on it.
         | 
         | > Count 2 is that Twitter committed [Texas fraud statute] by
         | lying when it offered its shares. It's shotgun-pled, so I don't
         | know which specific statements are supposed to be wrong, but
         | I'm imagining it's basically the previous count recast under a
         | different statute.
         | 
         | If it's due to Texas laws, is the appropriate jurisdiction is
         | the Texas courts or... oh, he's trying to claim that the case
         | should be heard in a federal court (for diversity reasons).
         | Good luck though Musk.
         | 
         | > Count 3 says that Twitter broke the contract by failing to
         | provide information.
         | 
         | What information? The contract is already in the public, but
         | okay you want to waste court time.
         | 
         | > Count 4 says that Twitter broke the contract by instituting a
         | hiring freeze.
         | 
         | Twitter could just point to its peers like Google, Meta and
         | Microsoft.
         | 
         | > Count 5 is pretty please declare that Twitter lying about
         | mDAUs is a materially adverse event that is cause to break the
         | contract.
         | 
         | Yeah, at this point I'm convinced that Musk wants to just waste
         | everyone's time, especially after the chancery court denied his
         | petition to schedule the hearing next year.
        
           | coffee_beqn wrote:
           | Also I'm pretty sure Musk himself wrote on public Twitter
           | that he would trim the fat once he owns the company ..
        
           | Sebb767 wrote:
           | > What information? The contract is already in the public,
           | but okay you want to waste court time.
           | 
           | The contract stated that Twitter had to provide Musk with
           | internal data as required to close the deal. His teams tokens
           | were apparently rate-limited at some point and it took a
           | while for Twitter to give him access to all data, a.k.a. 'the
           | firehose'.
           | 
           | Just for completeness sake, Twitter seemed to still try (the
           | token thing was probably a technical error) and whether
           | giving him access to the firehose was actually necessary
           | could even be contested, as he arguably wanted to use the
           | data to _not_ close the deal.
        
             | zinekeller wrote:
             | Quite derailing a bit, but Twitter executives are also
             | saying that it tries to protect Twitter since that Musk
             | indicated that he will launch a rival platform. Honestly
             | this particular part sounds like Stac v. Microsoft
             | (https://en.wikipedia.org/wiki/Stac_v._Microsoft)
        
           | bostonsre wrote:
           | > Musk didn't do (and subsequently waived) due diligence.
           | 
           | Wasn't him collecting all of this MAU stuff to analyze it
           | part of the due diligence needed in order to close the deal?
        
             | theptip wrote:
             | No. He signed the merger agreement without doing DD into
             | mDAU, and didn't write any contingencies around mDAU onto
             | the contract.
             | 
             | You do your diligence BEFORE signing the merger agreement.
        
               | bostonsre wrote:
               | O, that seems pretty odd. I can't think of any reason for
               | them to do that beyond trying to get out of the deal or
               | incredible negligence on the musk side in not doing that
               | before hand. Were they able to get that data before hand
               | if they wanted it?
        
               | jacquesm wrote:
               | Exactly. This whole thing smacks of regret on an impulse
               | buy. And as Musk should well know: regret is no cause for
               | contract annulment. Twitter is going to be his Waterloo
               | if he can't follow through on the deal, they're going to
               | force him to perform which means he may have to sell a
               | whole bunch more stock to people who know he has to buy.
               | That isn't going to help at all.
        
         | mayank wrote:
         | > I still can't get over the banana-pants insanity of the first
         | count... arguing that Twitter lied about its numbers for years
         | specifically so that someone would buy it at an inflated price?
         | 
         | Not a lawyer, so could you explain why this is banana-pants
         | insanity? There's malicious fraud (unlikely) and then there's
         | the more likely case of under-investing in bot-detection and
         | expunging efforts, e.g. "in favor of other priorities", to keep
         | DAUs and subsequently valuations high for a potential sale.
        
           | Invictus0 wrote:
           | Twitter's methodology for checking bot accounts is clear,
           | consistent, and has been detailing in its SEC filings for
           | years. Anyone that cared could have easily double checked
           | them. Recalling from memory, all they did is take a random
           | sampling of accounts and have a human rate the accounts as a
           | bot or not--back when Twitter had an API it would have been
           | even easier to do this.
        
             | jsnell wrote:
             | No. Nobody outside of Twitter can repeat the analysis.
             | 
             | First, only Twitter knows which users are active (the
             | population being analyzed are the DAUs). People doing bot
             | analysis from publicly available define activity based on
             | the account tweeting, which will probably skew heavily
             | toward spam bots.
             | 
             | Second, the mDAU metric is the DAUs with known bots having
             | been removed. Nobody outside of Twitter knows which active
             | accounts were excluded by Twitter from the metric. Even if
             | 50% of Twitter DAUs are bots, as long as Twitter detects
             | 90% of them as bots and marks them as non-monetized, the 5%
             | number stands.
             | 
             | Third, nobody outside of Twitter can actually do a proper
             | job of evaluating whether an account is a bot, since they
             | have orders of magnitude more signals than a simple tweet
             | stream / public profile information.
             | 
             | Twitters methology is far better than any publicly
             | available bot detection would be, but the flipside is that
             | it's not a replicable methodology.
        
               | runako wrote:
               | > No. Nobody outside of Twitter can repeat the analysis.
               | 
               | This is true of most material statements provided by
               | companies in every industry:
               | 
               | - Revenue? Trust the company, I cannot independently
               | verify from outside the company.
               | 
               | - Retail same-store sales comparable? Have to trust the
               | company's numbers.
               | 
               | - Headcount? I have to trust their number again here.
               | 
               | - Expenses? I have no way to verify this unless I work at
               | the company, in a very senior position.
               | 
               | Outside verification of data is not a concern relevant to
               | corporate disclosures.
        
               | kergonath wrote:
               | They must have some internal documentation though, and
               | the process can be looked at during the trial, right?
               | 
               | So it cannot be replicated by third parties, and Musk
               | does not know what he's talking about (shocker!), but it
               | can be verified _a posteriori_. And I assume it will be
               | at some point.
        
               | jsnell wrote:
               | I don't think it would be verified by somebody being
               | given access to Twitter's internal data and redoing their
               | process. At most both sides will trot out some expert
               | witnesses to talk about whether the process / rating
               | guide described in the internal docs are reasonable (what
               | Twitter does doesn't need to be perfect, just not
               | outright fraudulent). I look forward to finding what kind
               | of a kook Musk finds as his expert.
               | 
               | Maybe Musk hopes to find something in discovery to
               | discredit the process, e.g. evidence of the process not
               | being followed, or of the numbers being tampered with.
        
               | kergonath wrote:
               | > I don't think it would be verified by somebody being
               | given access to Twitter's internal data and redoing their
               | process.
               | 
               | Indeed. But surely they have at least internal audits.
               | They seem like they take this stuff seriously.
               | 
               | > I look forward to finding what kind of a kook Musk
               | finds as his expert
               | 
               | Indeed! If he picks his experts like his lawyers, this
               | could be spectacular.
               | 
               | > e.g. evidence of the process not being followed, or of
               | the numbers being tampered with
               | 
               | Yeah, he sounds like he's hoping to find a smoking gun
               | where some Twitter higher-up admits fudging the numbers.
               | To be fair, if that is true, then Twitter deserves to be
               | raked over the coals, even though it would not be
               | sufficient to get Musk out of this mess.
        
         | mywittyname wrote:
         | This provides a lot of insight into how that man got to the
         | top. He clearly has no qualms about lying and bullshitting his
         | way into and out of anything and no amount of proof to the
         | contrary will ever get him to admit he was wrong.
         | 
         | I guess this is similar to the "reality distortion field"
         | people claim Jobs had. Except the examples given there were
         | more of him not believing people who said something couldn't be
         | done.
        
           | kergonath wrote:
           | Jobs' RDF was a manifestation of his charisma: he could make
           | people think something really hard was actually easy (when
           | dealing with engineers and designers) or the other way around
           | (when dealing with customers).
           | 
           | Jobs did bullshit, but AFAIK more on the design and marketing
           | side than on the business side (give or take the backdated
           | stock option thing and his first stint at Apple, when he
           | wasn't in control). Certainly nothing like Musk's
           | shenanigans.
        
             | cma wrote:
             | > (give or take the backdated stock option thing and his
             | first stint at Apple, when he wasn't in control). Certainly
             | nothing like Musk's shenanigans.
             | 
             | Don't forget Jobs' prime role in having companies collude
             | together to depress wages by not recruiting each other's
             | employees:
             | 
             | https://en.wikipedia.org/wiki/High-
             | Tech_Employee_Antitrust_L...
             | 
             | "an interconnected web of express agreements, each with the
             | active involvement and participation of a company under the
             | control of Steve Jobs...and/or a company that shared at
             | least one member of Apple's board of directors."
        
               | kergonath wrote:
               | > Don't forget Jobs' prime role in having companies
               | collude together to depress wages by not recruiting each
               | other's employees
               | 
               | Yes, indeed! I forgot to mention that.
        
           | benj111 wrote:
           | I reach the opposite conclusion.
           | 
           | He offers to buy twitter on a whim, then changes his mind
           | after signing a contract. That doesn't really seem like a
           | good way of getting to the top.
        
             | spywaregorilla wrote:
             | People are missing the obvious story. He locked himself
             | into a price, then the price of things crashed. It has
             | crashed so much that he's honestly better off just walking
             | away and losing the billion dollars... but he doesn't want
             | to lose a billion dollars so he's gonna do whatever he can
             | do to get out of it.
        
               | dahdum wrote:
               | Oh it's definitely not about a billion dollars. He'd pay
               | that out in an instant if he could. The contract he
               | signed and the law itself is not on his side, he may yet
               | slither out of his commitments, but Twitter would never
               | settle for a mere $1B when they've lost so much more in
               | value due to him.
        
               | spywaregorilla wrote:
               | Twitter hasn't lost anything due to him? Their share
               | price would likely be lower if not for his dumb
               | shenanigans. The contract is pretty clear that he can
               | walk away for $1B, which is a lot of money.
        
               | dahdum wrote:
               | That's not what the contract says. The $1B breakup was
               | only if bank financing fell through, which it did and has
               | not. The banks are still bound by their commitment
               | letters to provide the required financing, and it doesn't
               | look too plausible they could back out of those
               | contracts.
               | 
               | Levine covered it well here:
               | 
               | https://www.bloomberg.com/opinion/articles/2022-07-09/elo
               | n-s...
        
               | megablast wrote:
               | He could lose a lot more than a billion.
               | 
               | He could lose the entire amount he pledged.
        
               | spywaregorilla wrote:
               | Possibly. But it seem unlikely. The deal explicitly says
               | he can back out for a billion dollars.
        
               | swores wrote:
               | No it doesn't say that, it says that if his third party
               | funding falls through then he's on the hook for a billion
               | dollars instead of buying the company.
               | 
               | There's nothing in the contract about a billion dollars
               | fee for any other reason of the sale not going through.
               | 
               | Of course, a judge could choose to take that number as
               | the amount to punish with, but it's not a price Musk can
               | just choose to pay to get out of the deal.
        
               | blackoil wrote:
               | That is not a backout clause but protection against the
               | deal not getting necessary approval.
        
               | jonathankoren wrote:
               | Only if the deal fails outside reasons like regulatory
               | action. Simply changing your mind, or claiming that you
               | should have done due diligence after you explicitly waved
               | it, doesn't count.
               | 
               | Personally, I want the court to rule for specific
               | performance (ie. Pay the $44 billion) He fucked up.
        
         | linuxftw wrote:
         | > I still can't get over the banana-pants insanity of the first
         | count... arguing that Twitter lied about its numbers for years
         | specifically so that someone would buy it at an inflated price?
         | 
         | This describes the entire business model of WeWork (minus the
         | self-dealing), why should Twitter be different?
        
           | kergonath wrote:
           | Hmm tough question... Maybe because they are not the same
           | company, are not managed by the same people, and do not have
           | the same business model? Just a guess...
        
         | Invictus0 wrote:
         | What's so interesting about it? It's total nonsense dressed up
         | in legalese.
        
         | leobg wrote:
         | > arguing that Twitter lied about its numbers for years
         | specifically so that someone would buy it at an inflated price?
         | 
         | I don't think that's the argument. Twitter is an ad supported
         | business. As such, the incentive is to count the "monthly
         | active users" rather higher than lower. Specifically, there us
         | no incentive to make an effort to exclude automated accounts
         | from that number at all.
        
       | mcguire wrote:
       | " _The merger agreement contained no references to false or spam
       | accounts, and Musk didn 't ask Twitter for any information to
       | verify the number of spam accounts before signing the merger
       | deal, Twitter said. "To the contrary, Musk forwent all due
       | diligence--giving Twitter twenty-four hours to accept his take-
       | it-or-leave-it offer before he would present it directly to
       | Twitter's stockholders," Twitter wrote._"
       | 
       | If that's true, it kind of makes the question moot.
        
         | koheripbal wrote:
         | No, because waiving due diligence does not mean the seller is
         | immune to claims if they _knowingly_ provided false data.
        
           | rchaud wrote:
           | That will be almost impossible to prove. Especially as he
           | provided an all-cash, take-it-or-leave-it offer based on
           | publicly available financial data. He has access to lawyers
           | and financial advisors to warn him against potential
           | misstatemrnts on Twitter's part.
           | 
           | If they signed off on it, he has no case. If they warned him
           | against it, and he went ahead anyway, he also has no case.
           | 
           | The judge will rightfully wonder how this isn't anything
           | other than a attention-hungry blowhard trying to get out of
           | scoring the most comical own goal in business history.
        
             | koheripbal wrote:
             | What happens in cases like this is that Musk will request
             | the court for discovery of internal Twitter
             | documents/emails/reports/etc to backup his claim that
             | Twitter was aware that more bots existed in their BAU
             | number than they reported.
             | 
             | Twitter will object, but ultimately _some_ degree of
             | discovery will be allowed (with a more narrow scope), but
             | it will pressure Twitter to settle for a lower purchase
             | price because god only knows what kinds of incriminating
             | shit lawyers will find in employee emails. Internal emails
             | is always a big big random variable which can then spawn
             | all sorts of unrelated lawsuits from discrimination, to
             | regulatory fines, to executives ' private life drama,
             | etc...
             | 
             | Even if Twitter is innocent - it is very easy for lawyers
             | to intentionally misconstrue a vague email or threaten so
             | with things found in discovery.
        
               | rchaud wrote:
               | Yes I also think a settlement is where this is headed.
               | But the bill be pretty high.
        
               | gamblor956 wrote:
               | _Internal emails is always a big big random variable
               | which can then spawn all sorts of unrelated lawsuits from
               | discrimination, to regulatory fines, to executives '
               | private life drama, etc..._
               | 
               | Given the NDAs that would apply to such discovery, were
               | such information to exist and to become public, Musk
               | would likely be imprisoned for contempt of court.
               | 
               | Not simply fined. Imprisoned. And his lawyers would
               | likely be suspended for a few months, if not disbarred.
               | You don't mess with the courts, because they have the
               | power to mess right back.
        
         | ncallaway wrote:
         | Not entirely moot. If Musk could demonstrate that the 5% number
         | was actually a fraud (that is, not just wrong, but people were
         | lying about it) _and_ show that the true number is so different
         | that it would cause a material adverse effect, then he'd have
         | an argument to escape the contract even with the DD waiver.
         | 
         | I don't think he has a shot in hell at demonstrating fraud,
         | given the various disclaimers around the quoted figure.
         | 
         | And, if he's saying the real number is 10%, he just doesn't
         | have close to a shot at reaching the material adverse effect
         | bar (which lawyers have told me is a very high bar in Delaware
         | courts).
         | 
         | So, on the narrow path that he can navigate after signing away
         | his soul and due diligence waivers, he's still totally hosed.
         | 
         | He really shouldn't have signed that contract.
        
           | NotTameAntelope wrote:
           | That's kind of like saying he has a shot at getting out of
           | the agreement if the sun collapses.
        
       | seydor wrote:
       | I wish this whole saga ended, and Musk buys reddit instead.
       | 
       | This current saga is pure entertainment, which will end up in
       | some kind of settlement and will leave the lawyers a lot richer.
        
         | Spivak wrote:
         | Musk buying Reddit would turn it into corporate 4chan even
         | faster than is already happening.
        
         | mherdeg wrote:
         | I'm amazed by how reddit has turned itself around from "the
         | place where the commenter zeitgeist involves wishing physical
         | violence on the CEO" to "the place I append to all my searches
         | with a site: prefix to find meaningful Web discussion and
         | product reviews".
         | 
         | There was a surprising and unpredictable community turnaround
         | from about 2015-2021; don't know if it will last, but it's
         | surprising how much better it is now.
        
           | hyperhopper wrote:
           | I don't think it ever changed: Reddit was always good for
           | things like that, easily for over a decade now.
           | 
           | Its just that the userbase has broadened, and is no longer
           | early-internet enthusiasts, and also censorship is far higher
           | now
        
           | seydor wrote:
           | It's also the place where the same group of moderators
           | moderates all politics subreddits for 15 years without
           | challenge. And international subreddits can be often worse.
           | Moderators run the show now, and they ve become extremely
           | vicious
           | 
           | What you 're observing is not some magical reddit
           | improvement. It's because forums have become unmonetizable,
           | and reddit has consolidated all of them in one place. There
           | is nowhere else to go for comment-like discussions (HN, but
           | it's limited). Their success and moat lies in their legacy
           | userbase. It's not because of their performance
        
           | koheripbal wrote:
           | I use it for product reviews, but don't ever use it for
           | meaningful discussions. The average age of Reddit users has
           | dropped significantly since the mobile app launched.
           | 
           | For tech solutions, Stackexchange is the place to go.
        
         | koheripbal wrote:
         | The number of bots on Reddit is likely much higher than on
         | Twitter.
        
       | qq66 wrote:
       | All of this is just a theatrical farce by business guys. The
       | market went down, Elon doesn't want to pay, Twitter has a pretty
       | good negotiating position, the parties will settle out of court
       | for $3-5 billion.
        
         | jassmith87 wrote:
         | Why settle? There is a reasonable shot of forcing musk to pay a
         | 200% premium. $3-5 billion is a steep discount. Twitter should
         | settle for nothing short of specific performance.
        
         | orlp wrote:
         | Why would Twitter settle?
        
           | fullshark wrote:
           | To close the sale and end litigation
        
             | saalweachter wrote:
             | So right now the Twitter market cap looks to be about $12
             | billion dollars lower than the standing offer.
             | 
             | I'd naively assume that the price to settle starts at $12
             | billion dollars, and maybe goes up rather than down --
             | right now that $42 stock price is at least anchored by the
             | probability of Musk being forced to buy it at $54, so if
             | this ends without a sale, we might expect the stock price
             | to go down.
        
               | nemothekid wrote:
               | > _So right now the Twitter market cap looks to be about
               | $12 billion dollars lower than the standing offer._
               | 
               | You also have to factor in almost every other social
               | media company is down 50% YTD. If the deal falls through,
               | the market will price TWTR like how they did to facebook
               | which shaves off another ~$15B off their market cap.
               | 
               | So TWTR actually stands to gain ~$27B in value.
        
       | AtNightWeCode wrote:
       | It is impossible for neutral companies to get mDAU data for
       | Twitter. Twitter needs to provide proof. You can't use Twitter
       | professionally without using bots btw.
       | 
       | There is a food market at the ground level of Twitter HQ with an
       | awesome beer selection. More valuable than most Twitter accounts.
       | :)
        
       | tezza wrote:
       | This must be the best point for Elon Musk to tear off his human
       | face to reveal the impassive robot metal underneath
        
       | make3 wrote:
       | read sperm analysis, was very confused. wouldn't have been
       | surprising with all the sketchy stories we're hearing about him
       | and his family, even if some are false
        
       | [deleted]
        
       | jjeaff wrote:
       | Imagine this whole ordeal playing out on a house that was not
       | listed for sale.
       | 
       | The buyer starts harassing the homeowner to sell to them, they
       | say no, so he buys up the mortgage lender and tries to force a
       | sale. His antics are hurting the home's value so you relent to
       | selling and give him an as-is sale contract, which he signs and
       | gives you 24 hrs to respond or he will try to force a sale.
       | 
       | All the while, this is of course taking your attention away from
       | your day job and costing you countless thousands in legal bills.
       | 
       | Then, soon after signing the contract, the housing market crashes
       | and the buyer claims he peaked in the window and it doesn't look
       | as nice as he imagined (even though he had previously been
       | publicly announcing that your house was crappy on the inside and
       | that he was going to buy it and fix it up) and so he wants to
       | break the deal.
       | 
       | You sue to make the deal go through, he countersues that you
       | misrepresented.
       | 
       | Who could possibly be on the side of the buyer?
        
         | breakfastduck wrote:
         | Except it's kinda funny because the 'homeowner' has spent 10
         | years developing the primordial cesspool that the buyer has
         | evolved out of and it's kinda funny that some famous rich
         | narcissist they've built an entire social network around
         | empowering is now fucking them over.
        
         | 762236 wrote:
        
           | markdown wrote:
           | What are your thoughts on TruthSocial, which is also "a
           | company of bullies, with how they ban people from their
           | service that down't conform"?
        
             | 762236 wrote:
             | I haven't used TruthSocial, but if they do the same (but
             | towards liberals), then TruthSocial has already failed.
        
           | muglug wrote:
           | The fact you think that Twitter supports "left orthodoxy"
           | just means the conservatives have successfully moved the
           | goalposts to make you believe they're the real victims.
           | 
           | Twitter is full of very prominent hard-right voices. Douglas
           | Murray! Charles Murray! Tucker Carlson! Dave Rubin! Ben
           | Shapiro! Edit: Bannon! Paul Joseph Watson! Jack Posobiec!
        
             | 762236 wrote:
        
               | muglug wrote:
               | I know leftists that have been banned from Twitter too.
               | 
               | I'd encourage you to read this thread about moderation on
               | social media platforms from the former CEO of Reddit:
               | https://twitter.com/yishan/status/1514938507407421440
        
           | root_axis wrote:
           | Even if we grant the accusations of enforcing a leftist
           | orthodoxy, that's twitter's prerogative, you may not like
           | left wing people but they are allowed to have a website that
           | caters to a left wing audience.
        
           | jscottmiller wrote:
           | >They repeatedly demonstrate that they are a company of
           | bullies, with how they ban people from their service that
           | don't conform to the left orthodoxy.
           | 
           | So the manner in which they conduct their private business,
           | which is well within the rule of law, makes them ineligible
           | for protection from those violating securities and contract
           | law?
        
             | wutbrodo wrote:
             | > makes them ineligible for protection from those violating
             | securities and contract law
             | 
             | GP said he doesn't feel sorry for them. He said nothing
             | about legal protections being inapplicable to Twitter. You
             | just brazenly made this up out of whole cloth.
        
             | TechBro8615 wrote:
             | It's not a violation of contract law to sue the other
             | party. That lawsuit may find that the complainant _did_
             | violate contract law, but the act of bringing the lawsuit
             | is not in itself a violation.
             | 
             | So at this point, pending adjudication, Twitter has not
             | been "denied protection." The court is the protection. The
             | two parties are suing each other, and the court will decide
             | the appropriate remedies for whatever each of the parties
             | has been "denied" due to any willful breach of contract by
             | the other.
        
             | 762236 wrote:
             | I said that I don't feel sorry for Twitter. The law should
             | apply without consideration of political ideology.
        
               | jonathankoren wrote:
               | What law are you talking about? The first amendment? It
               | doesn't apply to private actors. Not only does it not
               | apply to nongovernmental entities, it SHOULD NOT apply to
               | them. To do so would be government compelled speach.
        
               | 762236 wrote:
               | I'm referring to the law in the context of the purchase
               | offer from Elon, as the person I'm replying to quite
               | clearly stated "securities and contract law".
        
           | anothernewdude wrote:
           | So you're an asshole and think others should have to put up
           | with you? I doubt they do in real life, why should it be
           | different online?
        
             | 762236 wrote:
             | I don't understand this comment at all.
        
           | bentcorner wrote:
           | > _This gets my curiosity going, so now I 'm paying a lot
           | more attention to conservatives than is normal for me (on
           | Substack, YouTube, and Instagram)._
           | 
           | This is a phrase right out of this playbook. No thank you.
           | 
           | https://medium.com/@DeoTasDevil/the-rhetoric-tricks-traps-
           | an...
        
             | 762236 wrote:
             | It's called the Streisand effect.
        
               | Dylan16807 wrote:
               | Fake streisand effect. Pretending even the tiniest act of
               | moderation is a massive campaign to hide information.
        
               | 762236 wrote:
               | How is it fake? I'd have never learned about, e.g., some
               | of the gender critical viewpoints, if Twitter hadn't
               | banned people expressing them. It wouldn't have come on
               | my radar. But since Twitter did ban some of those people,
               | those viewpoints came on my radar (being relayed by
               | others via screenshots), which raised my awareness of it.
               | That fits the definition of Streisand effect.
        
               | Dylan16807 wrote:
               | Because twitter wasn't trying to make those viewpoints go
               | away or hide them from the world. They just didn't want
               | to _themselves_ amplify those views to hundreds or
               | thousands or more people.
               | 
               | Twitter's not trying to keep gender critical viewpoints a
               | secret, or remove them from anywhere outside of twitter.
        
         | bilsbie wrote:
         | A publicly traded company is nothing like a house. I say no to
         | this analogy.
        
         | wnevets wrote:
         | > Who could possibly be on the side of the buyer?
         | 
         | The buyer is rich and if I side with the buyer maybe one day
         | I'll be rich too!
        
         | jawns wrote:
         | Imagine it playing out in a romance! "You cad. I never wanted
         | to marry you, but I felt compelled to accept your proposal. But
         | now that you are trying to back out, I am trying to force you
         | to marry me, you idiot."
         | 
         | Although in this case, contrary to what it's arguing, Twitter
         | doesn't actually want the marriage to happen. It just wants to
         | keep the $1B engagement ring.
        
           | [deleted]
        
           | vehementi wrote:
           | You're not caught up with things. Twitter is suing to force
           | the deal to go through at the original price, not to get the
           | $1B.
        
         | ilikehurdles wrote:
         | The investors funding the buyer's antics.
        
         | dragontamer wrote:
         | > Who could possibly be on the side of the buyer?
         | 
         | Except you can just buy up supporters by gaslighting huge
         | masses of people on Twitter. The house in question.
         | 
         | Its so ridiculous. Musk's popularity is largely *BECAUSE* of
         | his Twitter antics. So this "buyer" is basically someone who
         | has come to house-parties / benefited from the house in
         | question for the last decade.
         | 
         | And the people arguing against the (current owners) of the
         | house are also the party-guests of that very same house.
        
           | moralestapia wrote:
           | >Except you can just buy up supporters by gaslighting huge
           | masses of people on Twitter. The house in question.
           | 
           | What? But he doesn't want to buy ... he wants to pull the
           | deal off. He. Does. Not. Want. The. House. Anymore.
        
             | Volundr wrote:
             | I don't think anyone is confused on this point.
        
             | Rebelgecko wrote:
             | Your comment implies that there was a time when he was
             | actually trying to buy the "house" in good faith. I'm not
             | convinced that is true... It gave him a great excuse to
             | liquidate Tesla stock without the market responding as
             | strongly as it normally would when a CEO unloads billions
             | of dollars of shares in a company
        
               | shapefrog wrote:
               | I think it is actually worse than that, I think he was
               | buying it in good faith.
               | 
               | He believed he had "bought the dip" in stocks. He had
               | bought 3bn worth, announced that he had bought some stock
               | and made 1bn in a day on it - worlds smartest man
               | everyone.
               | 
               | I know, if I buy 44bn worth then at this rate I will make
               | many many billions ...
               | 
               | Once he realised he wasnt buying the dip but was actually
               | holding the bag, deal cancelled. Best guess is he is down
               | 10bn on where he bid so his loss-porn on this one is
               | pretty sexy.
        
               | dragontamer wrote:
               | > I think he was buying it in good faith.
               | 
               | My personal theory, which more or less matches Matt
               | Levine's theory from his Bloomberg opinion column...
               | 
               | Musk wanted special features on his Twitter account. He
               | made a stink on Twitter about it, hoping to get more
               | features as one of its most popular users. When that
               | wasn't working, he tried to join the Board of Directors
               | to lean heavily onto the CEO to grant special features on
               | his Twitter account.
               | 
               | Upon realizing that the board position doesn't come with
               | those kinds of benefits, Musk quit the board, bought 9%
               | of Twitter, and tried to push these "special features on
               | my account" proposal that way. Board still didn't budge.
               | 
               | Elon Musk, realizing he has to buy the company to
               | actually get what he wants, starts to buy the company.
               | Then the stock price collapses and its turning out to be
               | a horrible loss. So Musk then starts to throw another
               | tantrum to get out of this one.
               | 
               | ------------
               | 
               | The benefits of this theory, is that this "story"
               | proposed by Matt Levine makes every single decision of
               | Elon Musk reasonable (albeit sociopathic, but reasonable
               | and self-serving). From his tantrum in early March 2022
               | on Twitter, to his 9% buyout, to his flirting as a board
               | member (and then quitting), to the eventual buyout.
               | 
               | It also doesn't require "4d chess thinking genius". Each
               | decision, while reasonable, isn't really that advanced or
               | difficult to follow individually.
               | 
               | Elon Musk just want special treatment on Twitter. I don't
               | know what that "special treatment" is (maybe a bigger,
               | bluer checkmark. Maybe guarantees on the global Twitter
               | Timeline. Etc. etc. Something along those lines...), but
               | special nonetheless.
               | 
               | And as a billionaire, Musk has a number of strategies at
               | his disposal that you or I wouldn't have. Musk is willing
               | to pursue those strategies because he's so rich, and its
               | really not a big deal to his finances.
               | 
               | --------
               | 
               | It just fits so neatly to what has happened, that its the
               | most reasonable proposal of his behavior for the past 6
               | months so far.
        
               | thaumasiotes wrote:
               | > I think he was buying it in good faith.
               | 
               | > He believed he had "bought the dip" in stocks. He had
               | bought 3bn worth, announced that he had bought some stock
               | and made 1bn in a day on it - worlds smartest man
               | everyone.
               | 
               | > Once he realised he wasnt buying the dip but was
               | actually holding the bag, deal cancelled.
               | 
               | But these concepts don't even apply to taking a company
               | private. Once you do that, there is no stock price. You
               | can't meaningfully claim that your stock is up or down.
               | And what the stock does between when you agree to buy it
               | and when you take possession isn't relevant to...
               | anything.
        
               | dragontamer wrote:
               | Lets say you promise to buy a car in 30 days at a
               | dealership (fully fictitious. This obviously can't really
               | happen in real life).
               | 
               | You sign a contract saying "I promise to pay $20,000 for
               | this car and I'll be back in 30 days".
               | 
               | ---------
               | 
               | What happens if, within those 30 days, the car market
               | collapses and the cars are now worth $15,000 ? Well, if
               | you were an honest man, you'd still carry through with
               | your $20,000 promised payment. If you were a dishonest
               | man, you'd try to find a way around it.
               | 
               | Same thing here. Twitter's stock price has no relevance
               | after Elon Musk buys it. But we all know that the 60%
               | drop in Tech prices means that Twitter is *probably* down
               | 60%+ like all other tech stocks.
        
           | joenot443 wrote:
           | > Musk's popularity is largely _BECAUSE_ of his Twitter
           | antics
           | 
           | I don't really buy this. I knew loads of Musk fanboys who
           | were crazy about him before Teslas even become available. The
           | 50+ folks that I'm friends with have mostly never used
           | Twitter or read a Musk tweet, but they think Teslas are cool
           | and are reminded that StarLink brought rural Ontario better
           | internet than our own government tried to do for decades.
           | Obviously Musk is an ass on Twitter (and probably in person),
           | but like a lot of neuroatypicals, their talent seemingly
           | makes up for their abrasiveness.
        
             | jollybean wrote:
             | The fanboyism is quite considerably amplified by his public
             | statements.
             | 
             | Without them, we may not get much press at all from him, he
             | may be a bit of an unknown quantity.
             | 
             | His Social Media / PR is a gigantic part of his value. It
             | distorts reality to a much, much larger audience.
             | 
             | Do you remember 'Maroon 5' the band? They had 'Really Big
             | Hits' back in the day . Banger / Chart toppers. But it
             | wasn't until the lead singer was on 'The Voice' did it make
             | them a 'Household Global Name'. There were a poppy band
             | with a tiny bit of an edge that appealed to a demographic,
             | now, they are like 'Jeopardy and Wheel of Fortune' -
             | multigeneratoinal giants.
             | 
             | Musk has fanboys that are Dentists in Malaysia, street kids
             | in Cairo, wannabe ballers in mid level cities in China etc.
             | etc..
        
             | wahern wrote:
             | > I don't really buy this.
             | 
             | I think you're both correct. My experience is as you
             | described, but Musk has _also_ developed a following among
             | political conservatives attracted to his abrasive, thumb-
             | nosing antics.
        
               | jollybean wrote:
               | It's not 'conservatives' as 1/2 of them loath that stuff
               | - and 'agitation' is traditionally an artifact of leftist
               | populism (with traditional conservatives usually being
               | small-c, establishment, older etc.) - it's more a bit of
               | a businessy libertarianism, with hints of anti
               | establishmentism that's in many ways more popular among
               | the youth. Also, it's a hugely populist and international
               | appeal, spreading his 'Noisy Tweets' around the globe.
               | 
               | See how much more popular he is now that he makes
               | 'controversial' statements [1]
               | 
               | It's as PR trick as old as time.
               | 
               | Edit: but yes, technically he has taken a public shift to
               | the 'Current American Right' in the mysterious political
               | situation we are in, that's fair to say. Just wanted to
               | indicate it's a 'new and kind of specific normal'.
               | 
               | [1] https://trends.google.com/trends/explore?date=all&geo
               | =CA&q=%...
        
               | cycomanic wrote:
               | I appreciate your analysis, but would like to add that I
               | feel that "traditional conservatives" seem to have
               | largely disappeared or become voiceless not only in the
               | US but also in other places like e.g. the UK. I imagine
               | in decades prior traditional conservatives would have
               | found people like Trump or Boris Johnson obscene and
               | distasteful.
               | 
               | However, I don't see many of that old guard speak out
               | against them. It seems with the reducing success
               | projections due to changing demographics, many see
               | winning as more important than values. Or at least that
               | is my only explanation.
        
               | netsharc wrote:
               | > many see winning as more important than values.
               | 
               | Interesting thought. For some analogy, if a bunch of
               | skinheads joined my local baseball team and started
               | playing dirty against the other teams and became the
               | champions, would I care that my team has been hijacked,
               | or would I not care because now my team is winning?
               | 
               | Obviously in the political example, the skinheads talk
               | about "values" and people who want to be deluded just nod
               | and repeat "values!", or they demonize the opponents by
               | saying they'll bring in "dirty migrants", etc...
        
           | iasay wrote:
           | If his popularity is due to what he posts on twitter it would
           | appear that a large proportion of the human race are deranged
           | morons.
        
             | dragontamer wrote:
             | A hundred years ago, you just traveled from city-to-city
             | with your posse of 20-guys. Those 20 guys would pretend to
             | be an interested crowd (which draws in / astroturfs fake
             | interest) Real people then start to join the crowd. You
             | then show off your snake oil product working ("guest#1 from
             | the crowd", who is of course your buddy), and then the real
             | people will get excited, and buy your snake oil.
             | 
             | Today, you just buy a bunch of likes / retweets to perform
             | the same astroturfing on a larger scale. Bonus points if
             | you "meme" it and "go viral". You want all those people out
             | there to be spreading your message at no cost to you.
             | 
             | A little bit of astroturfing goes a long way. People want
             | to feel as part of a community. So a bit of fake-generated
             | content and fake-interest helps at seeding the crowd and
             | popularity.
             | 
             | ---------
             | 
             | Stage magicians still do this today for entertainment
             | purposes, rather than illegitimately hawking fake snake
             | oil. Its a very good bit of entertainment. It does take
             | some practice but once you get the technique, its quite
             | repeatable.
             | 
             | Turns out that human psychology / group dynamics are in
             | fact, predictable and consistent.
        
             | vkou wrote:
             | It would definitely appear that our monkey brains aren't
             | very good at reasoning through social interactions that
             | happen through mass media.
             | 
             | Whether or not this makes most of us deranged morons or not
             | is in the eye of the beholder.
        
             | bilsbie wrote:
             | Welcome to earth?
        
             | jollybean wrote:
             | Most people don't pay that much attention.
             | 
             | They like the 'vibe' and that's that.
             | 
             | They may not specifically clue into the mapping of 'vaccine
             | hesitation / conspiracy' to 'health outcomes', they might
             | just view it as 'opinion' - which it is of course, but most
             | responsible people understand the 'dots have to be
             | connected'.
             | 
             | I think it's a bit part of the reason why a place like HN
             | won't grasp populism: we are almost by definition 'anti
             | populist' by our very outlook.
             | 
             | Even smart young people are usually busy with school,
             | partying, social things, they don't all have time to parse
             | all of the shifting nonsense, and those that do are more
             | often than not trapped down rabbit holes, I think searching
             | for 'an identity' more than they realize it.
             | 
             | This is populism. We (the crowd) make decisions on rough
             | statements, headlines, a few words here and there,
             | prejudices, assumptions etc.. Some of use a bit smarter
             | than others, almost none of us see our blindspots.
        
             | [deleted]
        
             | whack wrote:
             | Yes
        
             | ctvo wrote:
             | He can be popular due to Twitter and people can also not be
             | deranged morons.
             | 
             | Twitter is very popular with a few niche groups:
             | Journalists and people in tech for example. The former is
             | influenced by Elon's antics on Twitter and end up writing
             | news stories or making documentaries [1] about him. People
             | learn about Musk through these respectable publications.
             | The latter group spreads the gospel of Elon's TED talks and
             | press conferences to their friends and family. Being
             | subject matter experts, they're more likely to be believed.
             | 
             | Previously the coverage was mostly positive, but Musk's
             | antics on Twitter have caused both the former and some of
             | the latter to turn slightly negative from what I can tell.
             | For example, it's now a common joke that Elon's wealth is
             | partially due to being born wealthy. His family owned
             | emerald mines. I didn't notice that in the popular
             | consciousness until very recently. Phoney Starks is also
             | making it's way into popular usage.
             | 
             | 1 - https://www.nytimes.com/video/NYT-
             | Presents/100000008464087/t...
        
               | kaczordon wrote:
               | Except that Musk has talked about how he had to work his
               | way through college and basically didn't benefit in any
               | way from his dad.
               | 
               | https://twitter.com/elonmusk/status/1211054942192119808?s
               | =21...
        
               | ctvo wrote:
               | I don't mean to represent that I think it's a fact, only
               | that people are increasingly repeating it, which
               | represents more negativity than I think Elon has received
               | in the past.
               | 
               | Interestingly though, it was Elon who said his family
               | owned an emerald mine:
               | 
               | https://web.archive.org/web/20140802011449/http://www.for
               | bes...
               | 
               | That was a Forbes interview in 2014.
               | 
               | The relevant section:
               | 
               | > JC: How do you handle fear?
               | 
               | > EM: Company death - not succeeding with the company -
               | causes me a lot more stress than physical danger. But
               | I've been in physical danger before. The funny thing is
               | I've not actually been that nervous. In South Africa, my
               | father had a private plane we'd fly in incredibly
               | dangerous weather and barely make it back. This is going
               | to sound slightly crazy, but my father also had a share
               | in an Emerald mine in Zambia. I was 15 and really wanted
               | to go with him but didn't realize how dangerous it was. I
               | couldn't find my passport so I ended up grabbing my
               | brother's - which turned out to be six months overdue! So
               | we had this planeload of contraband and an overdue
               | passport from another person. There were AK-47s all over
               | the place and I'm thinking, "Man, this could really go
               | bad."
               | 
               | Who knows what happened between when he was 15 and 17 to
               | his family wealth that made him essentially penniless in
               | a foreign country.
               | 
               | Edit:
               | 
               | https://twitter.com/elonmusk/status/1375212880790913025
               | 
               | This is where Elon says he arrived in Canada with only
               | ~2500 CAD.
        
               | HarryHirsch wrote:
               | Elon _says_ he arrived in Canada with only ~2500 CAD.
               | 
               | He went to Canada and could rely on his family network.
        
               | TapWaterBandit wrote:
               | The emerald mine stuff is super overblown and only
               | matters to people who don't like Musk for other reasons.
               | 
               | If owning some natural resource like a mine or two was
               | all it took to become a trailblazing entrepreneur who
               | played a key role in Paypal/Tesla/SpaceX then Musk
               | wouldn't be as popular as he is with many because there
               | would be so many more like him around.
               | 
               | Musk is clearly an extraordinary individual even if he
               | sometimes acts like a dickhead and had a small boost from
               | owning emerald mines. But like I mentioned above if
               | owning a profitable mine of some type was all it took to
               | be an entrepreneur at Musk's level we would be drowning
               | in them and he wouldn't be such a big deal in the first
               | place.
               | 
               | But in the case of Twitter, Musk clearly seems to be in
               | the wrong here legally.
        
               | staticassertion wrote:
               | This assumes that everyone who has lots of money and
               | advantages chooses to try to run companies. That's not
               | the case at all. I grew up around ultra-wealthy people
               | and many of them wanted to focus on the arts.
               | 
               | So you have a small sample size - extremely wealthy
               | people. Then you cut that down massively again - those
               | people who also want to run businesses. Then a bunch of
               | other things to narrow the pool lol. But then, finally,
               | you cut it down to "and then the ones who succeed".
               | 
               | I don't think, at that point, the numbers are going to be
               | behind you.
        
               | sixQuarks wrote:
               | Wow, even being critical of Musk can't prevent the
               | downvotes if you dare mention some of his
               | accomplishments.
        
               | ctvo wrote:
               | > But like I mentioned above if owning a profitable mine
               | of some type was all it took to be an entrepreneur at
               | Musk's level we would be drowning in them and he wouldn't
               | be such a big deal in the first place.
               | 
               | I don't have an opinion on how big being born wealthy
               | plays in his success. Just curious though -- how many
               | profitable mines do you think are in operation and how
               | many people do you think own them as a percentage of
               | total global population?
        
               | TigeriusKirk wrote:
               | What level of profit did the mine bring in? That's the
               | real question that I've never seen an answer to.
               | 
               | You can own a gold mine in the California mountains and
               | come out of it with nothing but debt. It would sound like
               | you're rich in the newspaper stories, though.
        
               | TapWaterBandit wrote:
               | Mines specifically? No idea. But come from backgrounds if
               | wealth and privilege comparable to what Musk had from his
               | families Emerald mines? A huge number.
               | 
               | Think farms, family businesses, real estate empires, even
               | just well known doctors or other professionals.
               | 
               | Elon Musks family were comfortably upper middle class but
               | really nothing special in terms of wealth. There would be
               | hundreds of thousands of American families as rich alone.
        
               | [deleted]
        
               | 2c2c2c wrote:
               | anti musk sentiment mostly stems from the post-2016
               | leftist surge. most of the mainstream internet was
               | technocratic before
        
             | HeXetic wrote:
             | With everything that's happened in the past decade, don't
             | we know that already by know?
        
             | percentcer wrote:
             | got bad news for you
        
           | viraptor wrote:
           | > Except you can just buy up supporters by gaslighting huge
           | masses of people on Twitter. The house in question.
           | 
           | What's the path from the masses on twitter and courts which
           | will hear the case? Public opinion doesn't matter here. The
           | case over the contract doesn't even have a jury if I
           | understand correctly.
        
             | dragontamer wrote:
             | > Public opinion doesn't matter here.
             | 
             | Public opinion doesn't matter with regards to
             | winners/losers of the case. But public opinion matters from
             | the perspective of Elon Musk continuing to build his brand
             | and grow his fanbase.
             | 
             | Even if Elon Musk loses the court case, he still want to
             | turn this whole charade into a positive for himself. IE:
             | Fail upwards, etc. etc.
        
         | ErikVandeWater wrote:
         | Well this analogy leaves out Twitter censorship, which makes
         | Twitter unlikeable.
        
           | 1270018080 wrote:
           | Adding to the analogy: The current owners of the home
           | regularly remove swastikas spraypainted on their house by
           | vandals, and some people call this a violation of free
           | speech.
        
             | themaninthedark wrote:
             | FTFY:
             | 
             | Adding to the analogy: The current owners of the home
             | regularly remove swastikas spraypainted on their house by
             | vandals, while leaving the hammer and sickle spraypainted
             | by other vandals and some people call this a violation of
             | free speech.
        
             | shapefrog wrote:
             | Removing swastikas graffitied all over the place, political
             | correctness gone mad.
        
           | bhouston wrote:
           | I think Twitter is in a tough spot when it comes to deciding
           | how to handle hate speech and harassment.
           | 
           | In many ways they are like Amnesty International in that no
           | matter which human rights issue they report on, there will be
           | a contingent that says, well everything else you says is
           | true, but the stuff you said about me is completely wrong and
           | you've loss all credibility.
           | 
           | It is a hard spot to be in trying to be neutral in a world of
           | actors who only want the other side criticized or censored
           | and never themselves.
           | 
           | I am glade I do not have such a role. I wouldn't be able to
           | take the constant flak from all directions for actions or
           | inaction.
        
         | santiagobasulto wrote:
         | Except this is not a house. It's a public company. And a lot of
         | people own a piece of that company. And a lot of them were
         | unhappy about how Twitter's leadership was running things.
         | 
         | I honestly don't care, I'm not on either side. But this was not
         | a house sale, and Musk wasn't a crazy dude approaching a home
         | owner. He had a lot of support from shareholders since day 1.
        
           | powerhour wrote:
           | Analogies are like cars, they're never perfect but that's OK.
        
           | pavlov wrote:
           | Yes. And he promised those shareholders $54.20 per share,
           | signed the contract, and now the same shareholders are suing
           | to get the money. They don't care what happens to Twitter if
           | Musk takes over since they'll have cash instead of shares at
           | that point and can reinvest in something more promising.
        
         | jjoonathan wrote:
         | https://www.youtube.com/watch?v=3WShMzwT-nM
         | 
         | For best experience, read it with the Benny Hill theme in a
         | background tab.
        
         | tomcam wrote:
         | It appears to me that the seller was, in your analogy,
         | misrepresenting the condition of the house. This is my totally
         | unscientific analysis based on my private random sample of
         | accounts I interact with, so, not particularly robust as a
         | decision making tool for a big sale.
        
           | lazide wrote:
           | In the analogy, the contract was done with no intentional
           | representations by the seller _at all_ , and the buyer waived
           | contingencies/bought as-is.
           | 
           | It's almost impossible for a seller to misrepresent anything
           | material in that situation.
        
         | Banana699 wrote:
         | >Who could possibly be on the side of the buyer?
         | 
         | Legally ? I don't know, I'm not a lawyer, and law can
         | frequently have surprising implications in the twists and turns
         | of the its logical structure, which - as a bonus - differ by
         | time and exact place.
         | 
         | Morally though ? I have less than zero empathy towards the
         | homeowner, who hosts terrible and unimaginably dumb discussion
         | salons in the house and allows some opinions while banning
         | others arbitarily and unfairly. Let the childish potential
         | buyer drive the value of this house to the toilet and make the
         | life of the seller worse than the 7th hell, I'm all A-okay with
         | that.
        
           | tehwebguy wrote:
           | > allows some opinions while banning others
           | 
           |  _Me: Holy shit! You were censored for wanting lower taxes?_
           | 
           | Con: LOL no...no not those views
           | 
           |  _Me: So....deregulation?_
           | 
           | Con: Haha no not those views either
           | 
           |  _Me: Which views, exactly?_
           | 
           | Con: Oh, you know the ones
           | 
           | https://twitter.com/ndrew_lawrence/status/105039166355267174.
           | ..
        
             | Banana699 wrote:
             | I'm not entirely sure what you think you're achieving by
             | parroting an imaginery self-conversation from an
             | intellectually-challenged unknown person, but thanks for
             | proving all of my points anyway.
        
               | Dylan16807 wrote:
               | They're challenging you to be specific about the
               | opinions.
               | 
               | And you _really_ need to explain how that proves your
               | point about twitter. In general, if someone makes a
               | really dumb response to you, that doesn 't prove you
               | right about anything. And if your argument is "twitter
               | has bad comments" then a bad comment on HN doesn't prove
               | that right.
        
           | dragontamer wrote:
           | > Legally ? I don't know, I'm not a lawyer, and law can
           | frequently have surprising implications in the twists and
           | turns of the its logical structure, which - as a bonus -
           | differ by time and exact place.
           | 
           | The contract states the place of the law. Specifically: in
           | the Delaware Chancery Court. The contract also states the
           | time and conditions of the contract.
           | 
           | Have you read the contract? Its public. Furthermore, the date
           | of the court case has been set for October. It seems unlikely
           | that Delaware law is going to change dramatically between
           | then and now.
        
             | Banana699 wrote:
             | How does any of this change or contradict what I said?
             | 
             | And doesn't the US legal system allow for escalation to the
             | Supreme Court, which can override lower courts? So
             | technically whatever the Delware Court is not the final say
             | on whatever happens.
             | 
             | >Trial date set to October
             | 
             | This is so so awesome, I will get to see Twatter defenders
             | rage and fume for 2 more months? ^__^
        
               | dragontamer wrote:
               | > and law can frequently have surprising implications in
               | the twists and turns of the its logical structure, which
               | - as a bonus - differ by time and exact place.
               | 
               | There's no twist or turn of the law I can possibly
               | imagine between today, and October, in the Delaware Court
               | of Chicanery.
               | 
               | There is a reason why contract laws are written to be
               | argued in this court. Its considered one of the most
               | straightforward courts in the entire country, with legal
               | expertise / judges who specialize in corporate contract
               | law.
               | 
               | --------
               | 
               | But sure, I'm all ears. What kind of "surprise legal
               | twist" do you think will happen over the next 2 months? I
               | really don't think its too complicated of a court case.
               | Its just fun / fascinating to watch from the perspective
               | of internet celebrities.
               | 
               | In any case: the time has been set. October 2022. The
               | location has been set, Delaware Court of Chicanery. The
               | arguments have been set: we know what Elon is seeking to
               | argue, and we know what Twitter is seeking to argue. Not
               | much else to hypothesize here, really.
        
         | demarq wrote:
         | I go to a mercedes shop to buy a car I can show off with,
         | arrange a loan then get demoted and paid less. I'm
         | "effectively" too broke to buy the mercedes. So I return the
         | next day and claim "the lights are to curved!" Is the way I
         | look at it.
         | 
         | TLDR: The worlds richest man, insecure about his wealth decided
         | to show off and failed due to a lack of wealth. To somehow save
         | face he claims that his change of heart is not financially
         | motivated.
         | 
         | Lesson, no one in this world is above being insecure about
         | their wealth or status. It just happened to the worlds richest
         | dude.
        
         | throwawayacc2 wrote:
         | I am, not because I think "the buyer is right" but because I
         | hate the seller with a passion.
         | 
         | Twitter has done terrible harm to society and whatever and
         | whoever does it harm, it's doing a good job in my book.
        
           | breakfastduck wrote:
           | Quite funny than the person doing twitter 'harm' is exactly
           | the kind of famous, pompous narcissistic asshole their entire
           | platform has been built around enabling.
        
         | Kye wrote:
         | This would make a perfect episode if Knight Rider ever got
         | another reboot.
        
       | hn_throwaway_99 wrote:
       | I really can't see any other outcome besides Musk getting his ass
       | handed to him by the Delaware Court of Chancery.
       | 
       | It's always important to look at incentives and motivations when
       | trying to read the tea leaves, and if you look at _Delaware 's_
       | incentives, it's very clear. The whole reason everyone
       | incorporates in Delaware is because they have centuries of
       | handling business cases and have built out a clear set of rules
       | and procedures. That is, businesses go to them more for
       | _stability_ and _predictability_ than anything else.
       | 
       | Musk signed a contract. The BS reasons he is trying to use to
       | back out of it are borderline laughable, and even he knows this,
       | so if anything is just really trying to negotiate better terms.
       | The Delaware Court has every incentive to hold up the established
       | rules of contracts, _especially_ business acquisition contracts,
       | and I 'd be pretty shocked if they ruled in favor of Musk on any
       | of his claims.
        
         | SilverBirch wrote:
         | Actually I have to take you up on this, people who run large
         | corporations _say_ that it 's the strong legal regime they
         | have. In reality, it's a tax shelter. The only question is "How
         | much does Delaware care about their status as a real legal
         | regime vs their actual purpose: a tax haven". They know it's
         | difficult to defend "We're a tax shelter sucking revenue out of
         | the rest of the union", so they argue "We have strong legal
         | structures" but we all know that Coca Cola wouldn't be
         | incorporated in Delaware if they could save a cent by being
         | incorporated in Georgia.
        
       | qwertox wrote:
       | I have 30 Twitter accounts, but only one is used. It's only used
       | to be able to occasionally search for news on Twitter.
       | 
       | I wonder if those other 29 accounts are actually removed from the
       | active accounts count when trying to sell their numbers.
        
         | vel0city wrote:
         | I mean your answer is pretty self evident. If you don't use it,
         | it's not active daily, and so it's not a monetizeable _daily
         | active_ user, now is it?
        
       | logicalmonster wrote:
       | Twitter makes what seems like a good "gotcha" point here, but
       | knowing a little bit about how social media bots work, I'd like
       | to try and give my 2 cents about why Musk's profile is probably
       | not a great one for this type of analysis.
       | 
       | 1) Many people who create a brand new Twitter account just end up
       | following a few celebrities and then either not tweeting much or
       | forgetting about the account after a short time after deciding
       | that Twitter is not for them. It's likely that somebody well-
       | known like Musk has a ton of actual human followers who would
       | likely be labelled as bots because they're users with basically
       | blank profiles that would be seen as bot-like.
       | 
       | 2) When programming any reasonably sophisticated bot that doesn't
       | just blurt out spam as fast as possible until its banned, the
       | programmer would design it to blend in, to avoid detection by any
       | defense mechanisms that Twitter would have. It would likely be
       | seeded with an array of well-known Twitter profiles to follow at
       | random to appear like a normal person with normal interests. Any
       | particularly well-known Twitter account would be loaded with bots
       | just through bot authors starting out by seeding it with a list
       | of accounts they're familiar with.
       | 
       | 3) Due to his life and wealth, Musk probably also exhibits
       | characteristics that makes him seem more bot-like: such as
       | probably tweeting in random bursts at odd hours in many different
       | geographical locations.
       | 
       | 4) Given his status as an international figure that also has a
       | role in geopolitics and even military action, it's not impossible
       | that there are state actors with big resources who create bots
       | that follow Musks account for anything from trying to influence
       | him with responses and through polls, or to try and make him look
       | bad by "exposing" his bot activity at a later date when they need
       | to influence public sentiment against him.
        
         | evan_ wrote:
         | The people who sign up for Twitter, dork around for a little
         | while, and then leave and never return are not counted among
         | the monetizable daily active users.
        
           | logicalmonster wrote:
           | Botometer's test claims to use over 1000 individual features
           | in its analysis and it is unknown (to me, please clarify if
           | you know) if they use Twitter's exact definition of
           | monetizable daily active users in their system.
        
             | evan_ wrote:
             | What botometer does or does not do is completely irrelevant
             | to twitter's mDAU calculation.
             | 
             | No matter how many thousands of individual features
             | botometer has, it cannot (and will never be able to) tell
             | whether Twitter has served ads to that user today.
        
         | simiones wrote:
         | All good points, and all proving that the methods used by Musk
         | are unreliable for saying who is or isn't a bot - thus proving
         | Twitter's point.
        
           | logicalmonster wrote:
           | If I brought up good points, you should note that they apply
           | more heavily to Musk than most other humans, which means that
           | Twitter's response doesn't necessarily prove anything.
           | 
           | It's not the testing tool that's necessarily bad. Botometer
           | claims to look at over 1,000 features, which is pretty
           | impressive. The problem might be applying that tool on Musk's
           | profile for the specific reasons that I brought up. Musk is
           | an outlier in many ways and isn't necessarily a good sample
           | for an individual test as he'd tend to draw more bots than an
           | average users' profile.
        
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