Welcome back to closing bell on cheddar news, everyone,
twitter's annual shareholder meeting taking place today and investors
certainly paying attention
Elon musk's opposition in the social media company now on
a hold due to that sank bot spam account issue.
Wedbush is managing director of equity Research dan.
I've seem to expect more fireworks
during the event. And as you see dan joins me now dan, it's good to see you.
So what do you anticipate unfolding during
this very important shareholder meeting with musk's deal
being the most obvious topic?
Look, I think fundamentally,
I mean it's really right now about the sort of drum roll to the next step in terms
of when there will be a special meeting for Cheryl to decide do they approve the deal?
But there's only one problem must have a deal on hold.
And I think if you look at the stock right now,
assigning a significant percent chance
that must either walks away from the deal
or ultimately tries to renegotiate a lower price.
And I think that's the elephant in the room here, you know?
And of course Dorsey leaving the board that clears the decks now for
what's really going to be a standoff between the twitter board and must,
so what is the latest between the twitter board
and musk because we have basically seen this deal
accepted in part, but does it, it does seem now that musk
might be backing it down. Is there an animosity between the two.
Oh, I call it almost a UFC battle relative to animosity. I mean, look,
54, 20 in terms of that price.
I think at this point, you know, almost a 0% chance that that happens.
And, and I think the streets basically looking at it, does he look to walk away
called the spam body issue used that as a scapegoat.
I believe there's a 60% chance of that happening
pay trying to pay the billion dollar breakup thing and
lightly twitter board will fight this in court or
they ultimately behind the scenes come to the table,
try to renegotiate a lower price in terms of the deal
because look,
as we saw with snap and you see with your other social media coming without the
must deal twitter's probably trading mid to high
twenties right now in terms of stock,
Okay,
is it really appropriate to take it at face value that the fake
spam bought account issue would be the deal breaker for Elon musk.
You think that's true?
Well, I think it's a scapegoat dog ate the homework or whatever you wanna call it.
I mean
400 billions come off of Tesla's market cap since the deal,
it's a vastly different market than it was 45 days ago.
I think must basically woke up one day and be like, hold on, I was like, what am I doing?
And I think, you know, looking for uh,
definitely a bit of an excuse here and there's no doubt the spam issue at twitter,
It's a disaster. Everyone knows that,
But that's not necessarily a secret, is it more than 5%, it probably is.
But, but I think that ultimately now will start to be the debate
because musk look legally, I mean when you,
when you actually look through the documents,
it is a tight rope in terms of him trying to walk away.
But if you look at the stock,
the stock is basically telling you he either walks or it's a much lower deal person.
Okay,
I do want to get your take dan
on another issue because business Insider penning an article
about allegations and a settlement to the tune of about a quarter of
a million dollars for a flight attendant
who claimed sexual misconduct against Elon musk
for his company SpaceX a day before that came out,
musk actually took to twitter saying that he
anticipates attacks against him will ramp up.
What do you make of that settlement?
Do you expect more reports to come out and how does
that impact the publicly traded company that he continues to run?
Tesla
Look, I mean, you know, I think musk obviously, you know,
continues to create a lot of noise from the actual twitter situation.
And, and of course with some of these other headlines,
you know, it needs ultimately for investors,
that's really the focus because the last thing you want to
see right now are these negative headlines that we've seen from Moscow
and obviously, you know, some of those, you know, he has to, you know,
ultimately sort of play out, you know, in terms of the odds, whether it's the courts.
But I think for now it just comes down to, it's not what you want.
Ambassadors to see, investors are focused on Tesla focus on the fundamentals
In terms of navigating what's a horrific supply chain
crisis that we see with the zero COVID issues.
And every day it's been another headline to musk and,
and that's just created more of a black cloud over Tesla stock.
I do believe musk.
Your first black situational awareness is starting to listen
relative to what we're seeing with Tesla stock.
And that's why I think it's gonna be pressuring more and
more to try to walk away from the twitter deal.
Mm hmm. Okay.
We'll wait,
we'll wait to see what comes out of this twitter shareholder meeting of course,
with the must deal front and Center
that's denies Managing Director of equity research at web with security stan,
Thanks again,