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tv   Bloomberg Technology  Bloomberg  July 8, 2022 5:00pm-6:00pm EDT

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announcer: from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with emily chang.
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caroline: i am caroline hyde in new york, in for emily chang. this is "bloomberg technology." elon musk's escalating battle with twitter, the takeover possibly in jeopardy. the world's largest contract chipmaker reported better-than-expected quarterly revenue signaling electronic demand is holding up better than investors feared. we look at today's jobs report, the u.s. number and how the tech sector is faring in the numbers with many companies laying off employees. we will get to that in a moment. first, let's check on the markets. katie greifeld, quite a run to the nasdaq. katie: the s&p 500 down about .1%. tech fared better.
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your be outperformer was the chip stocks. -- your big outperformer was the chip stocks. rising nine points on the back of the blockbuster jobs report. chips for the outperformer on the day and the week. the index up 6.5%. most of the gains came yesterday. samsung reported a bigger than expected jump in revenue. that changed the mood music for the space in a good way, closing out with solid gains. it has been struggling. speaking of solid gains, let's end on bitcoin just for you. it had a pretty good week, best week since october. your to date -- year to date, barely made a dent. bitcoin down close to 53% year to date.
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you can see the line went up a little bit but barely scratched on what has been a bad year for bitcoin. caroline: thank you. we have been bracing for a bad job support as well. u.s. employers added more jobs than expected. federal officials tilted toward another interest rate hikes to the tune of 50 or 75 basis points. daniel, before we dig into the nuances affecting the tech sector, 372,000 jobs added, it was good. >> this is a jobs market that fundamentally remains healthy. we are seeing strong jobs gains. even though there is rain on the forecast, skies are clear for the labor market. caroline: overall, where did we
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see any weakness? say for example participation levels? >> that was a blemish on the report. we did see labor force participation come back. we should not put much stock into one month's changes. as long as the job market remains tight, we should see the labor force continue to trend upward like it has been over the last year. caroline: what keeps it tight? >> we still see employer demand is extremely high. there are over 11 million job openings, almost two per unemployed worker. as long as that holds, we should see more workers drawn in from off the sidelines. caroline: when you look at the amount of women in the workforce, still well below where it was pre-pandemic. black workers, asian workers in particular, men not participating in the levels they were previously.
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his childcare the issue? is it lack of good pay, benefits? what is holding people back? >> there are some pandemic related factors. when we look at childcare and eldercare, those care factors are something still holding people out of the economy. covid is still going on. that is preventing some workers from fully engaging. it is important to remember structurally because of retirement and the aging population, we should expect participation rates to come down a little bit. on top of that, we have other factors like immigration which has been low the last few years, holding down some potential labor force gains. caroline: i'm interested in going sector by sector. we continue to see a shift in spending. we want to have experiences we want to go out to eat.
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you see that in labor. >> what is interesting about today's report is we saw broad-based job gains. even though there are concerns consumer spending is rotating from goods to services, we saw healthy job gains in retail. around 60,000 jobs added after a job loss last month. that is where we are still seeing job gains despite anecdotes from companies of weakness in the retail sector. caroline: let's talk about some of the anecdotal evidence. it's not just retail. it has been real estate. we have seen gamestop letting go workers. i know these are tiny pools of labor, but then you have a headline that says oracle is discussing laying off thousands as they cut about $1 billion in cost. are we going to brace ourselves for that? >> i think today's jobs report
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is a bit of a surprise because we saw information add 25,000 jobs which was well above what you might expect given we have heard all of these prominent anecdotes of layoffs. i think we might be seeing that there are prominent layoffs but they might not be widespread yet, or at the very least many workers who are laid off able to get back on their feet quickly. what we have been hearing anecdotally is maybe candidates have two job offers as opposed to five, but the fact is they are still finding jobs and being hired. caroline: what about the wages they are seeking? what was interesting was probably music to the federal reserve's ear is that wage inflation is being suppressed at the moment. >> wage inflation is slowing. i think that is a result of the slowing labor market over all. in the example i gave, if they have five job offers, they have more leverage than somebody that
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has one. in all the cases, the person is probably getting a new job, but the wage growth potential is very different. caroline: from your perspective, the market reaction was good news and bad news. we are slightly worried about how fast and for the interest rate hikes will go. do you think this does give the federal reserve free range to hike aggressively? >> i think the strong jobs report the cooling wage growth does assuage some fears the federal reserve might have had that we would see a more dramatic slow down and faster slowdown than previously expected. i know the fed has said they will react to data as it comes in. for now, the data seems to be indicating the labor market is very healthy. caroline: thank you so much, the senior economist from glassdoor talking about numbers and nuances in the numbers around
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the tech sector. we were talking about gamestop perhaps cutting some jobs. shares are falling on the back of the news. the company fired the cfo and plans to cut jobs to be turning around the business. gamestop's growth has slowed as gamers have switched to digital downloads. coming up, jitters surrounding elon musk's offer for twitter. we debate as to whether he can walk away or will end up in court in delaware. this is bloomberg. ♪
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caroline: let's check in on where the big deal is or is not going. we are talking about one musk's battle with twitter, possibly threatening to walk away from the takeover offer. he is all over the story and joins us now. is it about bots? >> i don't think so. as you have been talking for a couple of weeks now, i think it is probably about his hope of renegotiating the deal. the market has changed dramatically since he agreed to by twitter for $54.20 per share in late april. i imagine if he had waited even a month, he could have gotten the company for a much lower price. i since that he is using this issue to force a change. caroline: twitter has said we are holding him accountable for the price he talked of.
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realistically, this is heading to the courts? >> it feels that way. twitter has control in the sense that he has agreed to buy the company for this price. he cannot simply walk away without some type of legal battle. twitter seems to be saying they are willing to do that. i don't how beneficial that is to twitter to spend a lot of time and money fighting him in court. maybe they would come to some type of agreement to lower the price without having to get there. it is in twitter's best interest to get the best deal for the company. right now that $54 20 since a share he offered in april. caroline: we understand they are advising on the deal. the debate is going to come up at some point. >> the question is, is he going to be sharing new information? he last spoke publicly at the
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end of june and said what he had been saying before. there was a report that he is unhappy still with what twitter is putting out on the bot front. anything he says new would be significant because i feel like it has been a lot of the same stuff from both sides for a couple of weeks. caroline: what is the one thing you are looking for on the steel? -- this deal? >> i guess i want to see if he is willing to walk away. he sort of threatened it to her three times now. is he really willing to say i wish i had not done this deal and i'm going to force twitter to sue me? that is like saying i am most looking forward to the end of the movie. of course, everyone is. i do think that is the main hang up here. is he really going to do what he seems to be threatening to do? caroline: tell us about how
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twitter is faring in all of this, how the executives are doing, how the talent pool is going. they did confirm they are likely to be slow in hiring and maybe letting go of people in certain areas. >> it has been a tough go if you are an employee of twitter for the last few months. not only is the deal hovering over everything. it creates awkwardness about what we should focus on and build. they have said they are going to do cost cuts. they did a hiring freeze. they rescinded some job offers. there was news yesterday they laid off 100 people, a small percentage of the workforce, but you get the idea things are not moving in the growth direction for them right now. when you add that on top of the fact they are waiting for the steel -- this deal to possibly close or not, i think it creates an awkward situation if you are an employee. caroline: all p.r. is good p.r..
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have people reengaged with the platform because it has been in the news cycle so much? what's good question. we will probably find out because the second quarter just ended. last time, they did not do a call. they just released a bare-bones press release with some numbers. it will be interesting to see if user growth is still there and if this is driving people to the service. i'm skeptical because a lot of what drives people to twitter is major news events like election. i'm not sure if being acquisition is the kind of news that will bring people to the service. caroline: stick with us. it's a friday when everyone is going home, but we are getting this from elon musk regarding his bid for twitter. understandably, we are going to
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have to read through it in real time overall. it seems to be updating us. previously, we have had how much of the deal has got backing from private sources, as we understand. it amends the schedule 13 d filed by elon musk with the s&p on april 5 with respect to the offer, amended on the 11th, the 14th, 26, 20 seventh, and goes on to say all the other times it has been amended. it looks as though they are amending, adding the following information. the reporting person is terminating the merger agreement. the letter in full text is attached and incorporated for reference. the letter i'm going to be opening up. this is real time reporting on bloomberg at the moment. it does seem as though elon musk
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has filed an amended 13 d. it looks as though they are saying they are terminating the merger agreement on july 8. what do you make of it? you are hearing me read it out live on air at the moment. we are going to be rushing for every reporter in the building. this is a letter to twitter. it says we refer to the agreement. for any reasonable business purpose related to the consummation of the transaction, twitter has not complied with contractual obligations. for nearly two months, mr. musk sought the data to make an independent assessment of the prevalence of fake or spam accounts. he says thus far, it is necessary to consummate the
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transaction. it looks as though mr. musk has decided we cannot do it because we do not have the right information on bots. >> see my face? this is the face of someone learning the last three months of work and reporting i have done is the tip of the iceberg. it sounds like we have more to go. i'm not surprised because we have seen the move in this direction. they have not been able to agree on this. elon seems very focused on reducing the cost of the deal. i will say i did not expect him to walk away from something entirely. i thought he would try to renegotiate. we need to look at this further and figure out exactly what he is trying to do. maybe this is the first step towards a renegotiation. it certainly feels like this thing that has been boiling for a few weeks is clearly reaching the boiling point. caroline: is has his financial
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advisors at morgan stanley -- it says his financial advisors at morgan stanley have been requesting information as far back as may 9. elon musk has had a lot of help and backers out west. >> he has had a lot of advisors throughout the process. it is not just elon musk. there are entire teams of people passing information, that have been in contact daily about this kind of stuff. i think today it has been, what is twitter giving elon and what is elon demanding? i think twitter has said we will give you the firehose of tweets. we will give you every public tweet on the service. elon is clearly saying that is not sufficient for calculating what i need to calculate which is the percentage of bots. i think the real issue is they do not see eye-to-eye on the bot issue and clearly that is big enough for him to pull
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the offer. it feels like we have been building to this for some time. i have to imagine he had some buyer's remorse given he made his bid in april and we have seen what the market has done since then. caroline: it feels this is destined for the courts. >> i think so. twitter has said repeatedly we plan to enforce the merger agreement. they had come to an agreement. even him saying i am pulling out, my understanding is twitter legally can try and force him to buy the company for the price he agreed to. i need to look closer at the filing. i learned about it as you were reading it to me on air here. i do think this feels like it is headed for court 100%. there is a $1 billion breakup fee. is not as simple as him paying
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$1 billion and walking away. there are other elements that would have to fall apart and he would pay it is a penalty. it is not a fee you pay because you wish you got a better deal. caroline: thank you for being with us in real time to read through the filing with me. we thank you so much, kurt wagner. elon musk is terminating his twitter merger agreement. everyone wants to head out for a well-deserved rest. he says twitter has failed to provide essential information and has not complied with contractual obligations, all of this regarding the all-important bots. shares of twitter sinking in after hours. join us for more. this is bloomberg. ♪
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caroline: let's get back to the breaking news.
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twitter shares following after hours after elon musk filed a 13 d, amended, saying he wants to be backing out of the offer to buy twitter. he is terminating the merger agreement saying it failed to provide essential information and sometimes ignored requests for information. you were meant to be talking about another social media platform. you are set to take questions on this breaking news on a friday afternoon. wonderful to have you back on with me. talk to us about what you're making of this particular move. we all sort of saw it coming. >> i was looking at this letter. you will excuse me having a peek at my phone because it just hit the wire. elon musk basically trying to invoke some of those requirements to break up this deal. i see he is calling out the
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company saying the claim that fewer that 5% of the daily users are spam accounts is dramatically understating spam accounts on the app. there are some fighting words in here. i am seeing him say this statement is likely to result in a company material adverse effect. in filing terms, that is something that would need to be disclosed to investors. it does seem like elon is fixating on the question of how many of the users on twitter are verified and not bots. he is calling in and calling out the company making an assumption. i'm not sure where it's coming from, but he is saying the number of daily users that are false accounts is not true. that is the biggest thing popping out to meet, that and the fact he says he has asked
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for a lot of this information time and again and has not gotten it. because of that confluence of events that i know you have been covering closely the last few months, he is saying those are the reasons why he is calling it quits on the potential deal. caroline: as we know, that ain't going to be the end of it. alex barinka, thank you so much for jumping on and getting involved in the breaking news. as we know, it looks as if elon musk is trying to back out of his offer for twitter. we will see how that continues to unfold. stay with us for breaking news analysis on this friday afternoon. from new york, this is bloomberg. ♪
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caroline: breaking news, two at a space before your weekend, elon musk has terminated the twitter--- the twitter agreement.
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he said some of twitter's daily active user enclosures are misleading and he believes the spam accounts are higher than 5%. our guest is still with us. crystal, you have been looking at some of the nuances to this because yes, he might try to terminate the deal. but this is not going to be as easy as all of that. crystal: it's not very easy. we have reported that -- first of all, one of the quickest m&a processes. it was so quickest -- quick. he is saying he has requested information and twitter has not been complying with that. twitter has been saying otherwise. the interesting angle here is whether musk gets to get out of this deal, and whether twitter is going to sue. that is the next thing we are looking at. like you said, it is not going to be as easy as just walking away. caroline: many have anticipated the next stop is the courts, is
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delaware. the problem here is who has got the financial might? twitter, who has a fiduciary duty to its shareholders to get the best price deal, but not to spend all of its money on legal fees? crystal: that's right. whether twitter will fight this fight or hash a deal with musk what remains to be seen. interesting to note sun valley is still going on. musk is there. so is twitter's cfo. whether they can hash some deals out at the billionaires retreat will be interesting. it dropped at a very unexpected time on friday afternoon. caroline: it has to be said that to be fair to elon musk, he decided to wait for due diligence, but he made this bet, this offer before the market really started to hit freefall. we have been falling basically since the top of the market in january. we are now much and a bear market when it comes to the nasdaq. we have seen tech valuations plummet.
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arguably, is this just him trying to get a better deal for himself? crystal: we have seen this scenario before. the market can turn quickly. if you remember in the beginning of covid, victoria's secret was close to getting bought, but the deal got reversed because of how much the market has changed. that could be one of his arguments. the market has turned so much, it is no longer the same price. that sounds like a price recut, not an entire termination. he entirely skipped that and went to the termination and the data we saw now. the whole story is still unfolding. could there be a deal, could he be using this as a gesture to recut the price? we don't know any of that yet. we will keep reporting and if we have anything more, you will see it on bloomberg news. caroline: a deeply expensive game of poker that we are trying to read every single site on. overall, the market has seen a complete drop in m&a. yes, there have been one off enormous deals at the beginning of the year that have managed to
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support the overall m&a numbers. microsoft, for example. we have had every deal put on ice. crystal: that's true. a lot of processes have been going on, had to either scale back or entirely be put on ice like you set. a couple of big deals like the vmware are holding up the m&a volume. let we are actually seeing m&a volume significantly lower than last year. last year was an outlier. everything last year was just enormous in terms of volume. whether it comes back, and it will be extremely interesting, also this year's volume has hinged on twitter. and elong. -- a long. it could reverse this year's m&a outlook. caroline: some bankers might be cross. also with us is kurt wagner, the man who has been following this headline by headline, blow-by-blow. it was hilarious how many amendments have been made since the important day when we first
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learned he would be making the offer. anything else you have seen within this time that has caught your attention? kurt: he is obviously creating a narrative here with this letter he sent to twitter today, dated july 8, where he says the company did not cooperate. that he has been asking for certain data. that they had made it difficult. i think the letter included information about how they were not operating under normal
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about there being hiring freezes at twitter, they have hired to top executives now. what is interesting about him claiming that maybe twitter was making poor business decisions while we wait for this deal to close as i got the sense, and i was told throughout the reporting, but elong did not care much about all of that. that he was worried the ceo was running the company, as you would run a company. it's funny that these things that did not seem to be a problem are suddenly making their way in, of why twitter is at fault for why this deal is falling apart. certainly from the letter elon musk is pointing the, blame to the company, not saying, hey, i change my mind. caroline: going back to the ted talk he made at the time of him putting in the offer, and it seemed to be not about profit, it was more like a move for society. it was all about free speech, making this a private company rather than a public company. he was doing some sort of service. why now does he care about all of the nuances? it does feel that he does care about the price. kurt: that is what i think the answer is. i don't think it is the nuances. i think it is that this ultimately looked and became a bad deal for him and said -- and said all of a sudden, all of these things i did not matter a few weeks ago suddenly do matter, because they help him in his argument that hey, i tried to make a good-faith deal, and
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twitter did not that is what we are going to start hearing. that is what we are seeing in this letter. i imagine that will be the argument moving forward. the funny thing about the bond issue is elon musk has been complaining about twitter bots since before he bought the company. he knew and has known that boughts are a part of twitter. he has had that experience with them before. now he is coming out and using the bot issue as a reason to walk away from this deal, or attempt to walk away. i really think we will be parsing this for a while. my gut initial read is he is trying to set up his narrative for why he thinks twitter is responsible for this deal falling apart, and not him. he is doing that because if he is the one who walks away, or makes this an issue, twitter might be able to sue him to complete the deal. caroline: kurt wagner, we thank you so much for all of the breaking news analysis and crystal tse as well, giving us
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an analysis and nuanced to what we are learning. that is elon musk is looking to terminate the deal to buy twitter. we will have so much more on the market moves and market moves with tesla. stick with us. this is bloomberg. ♪
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caroline: welcome back to "bloomberg technology." yes what? breaking news. elon musk has started the process to try to terminate the deal to buy twitter. he is calling out failure to provide essential information, ignoring requests for information, and what he calls a number of bots that are in excess of 5%. this is driving twitter stock down after hours and moving other shares as well.
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katie greifeld is still in the house with us and our across asset reporter. you have been looking at notes leading up to this about probabilities of whether this deal will get done. katie: it has been interesting to watch the wall street community talk about this deal. dan ives put out a note yesterday saying that there is a 60% chance that this deal gets done. that was yesterday. following some washington post reporting. they also suggested there could be a 35% chance that mosque walks away from the deal altogether, which has worn out now. the bots question has been a big question regarding this deal. there's also the share price to consider. when muska made this offer, it was at $54.20 a deal. that had been floated in the analyst community that may be the price was too lofty, maybe they will negotiate it down more. twitter shares trading at around $34.54. that premium between the two
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had grown, and obviously growing now. now the deal is terminated. caroline: i want to ask you about the tesla market reaction, one you pointed out on twitter itself, ironically. using the social media platform to break the news. remind us why tesla might bounce on it. katie: the deal here is that obviously, musk is the ceo of tesla. the bull case behind why you are probably seeing the shares move higher, tesla shares over 1%, higher than when i tweeted this, is perhaps musk will refocus his attention on tesla. supposedly his main company. musk has always been sort of a part-time ceo of tesla. he has a lot of projects going on, including spacex. we will see if this move holds two when we get to real trading on monday. interesting to see the after hours reaction. you see the knee-jerk move lower. twitter shares down 6%. tesla shares moving up to 1.5% or so. that is the knee-jerk.
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caroline: katie greifeld, as always, we thank you for the knee-jerk reactions, ultimate reactions. ahead of wall street week is our very own david westin, anchor of that show, anchor of the politics show for us, and a man who knows a lot about the law. and this is going to the courts. david: the one clear winner are the lawyers. there will be a lot of lawyers charging a lot of money that will pay a lot of billable hours as a result. i think there is so much we don't know. we know that elon musk says he will not go forward with a deal. we have to take him at his word. he has some legal obligations that he has to address. the twitter board has been steadfast, saying we are holding you to your deal. you have to ask, is he getting out of it or is this a negotiation? this is a negotiation over the breakup fee, or a lower price, as katie suggested? he would not have offered $44 billion a month after he offered it. there was no longer a sensible
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price. he is saying, i'm not sure i wanted it at that price. i guarantee there is a lot of legal action coming. caroline: it is a fiduciary duty of the board to fight for the highest possible price. it is also went to be costly for the board's of twitter and twitter executive team to be paying these legal fees when we know it is up against the melt -- against the wealthiest man in the world. david: there is a fairness of it that was rendered by goldman sachs and others saying this is a fair price. it is hard for the board to say, we have a fairness opinion saying the prices the fair price, now we will give up on. that is a tough thing to do. the board has a pretty good legal argument. they have been pretty steadfast. i suspect part of what is driving mr. musk is the board has shown little willingness to negotiate. as i say, maybe he is trying to get out of it. it is possible that he is trying to get a real negotiation going. caroline: going back to how this deal erected.
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he did this in a bombastic way. it felt as though documents were put in too late, documents were not filled out in the normal way, and it seemed he waived his right to due diligence. david: he did waive his rights to due diligence, which says something. you say bombastic and elon musk is not necessarily contradictory. not a total surprise. that i think people who know elon musk and have dealt with him during this time, i think there is a good part of elon musk that did want to buy twitter, maybe still does want to buy twitter. he generally wants to buy this company and thinks he can do something good. i don't think he was toying with it. i just think he is of two minds apparently. caroline: david westin, what we would do without your legal expertise, and the man who will talk about it a little bit with your show that we want to be watching, wall street week, balance of power as well. you can tune into david westin there. we thank our own katie greifeld for the market moves and the
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reactions. more for you in terms of analysis to the breaking news this friday. elon musk backing away from the $44 billion deal for twitter. this is bloomberg. ♪
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caroline: the disastrous scenario has occurred, as according to dan ives. this of course, key analyst on all things twitter, putting out a note as we see from wedbush. dan ives saying the termination of the 44 billion dollars deal for twitter is a disaster scenario for twitter and its board, as the company will battle musk in an elongated court battle to recoup the deal or the breakup deal of $1 billion. to discuss this amidst this analysis, i want to bring in one ed ludlow, who has been on the plane back from one sun valley event where i'm assuming everyone has been talking about this deal. you managed to read the letter.
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what were people saying about this deal? ed: all of the investments -- investors i have been speaking to have been bracing for this. the idea of a termination being possible. we know about the reverse termination fee for both parties. investors are bracing for an outcome where we have a long protracted legal battle between elon musk and twitter's board. you look at the letter elon musk sent to twitter. he is pretty clear. he made multiple attempts to request information about how the scientific approach twitter's board was taken to quantify a level of bots on the platform. this idea they have had 5% of bots on the platform has been a long-standing boilerplate that twitter has used in regulatory filings in many years. it is weird and surprising that this was an issue for musk in the first place. you remember back to april 25 when he signed the deal, he waived due diligence.
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with the news as it is breaking that he has terminated, everyone i've spoken to in sun valley, it thinks this is bad for twitter. they are already cutting costs and bracing for a recession in which they are going to have to lower r&d's session, and the market is looking ok globally. it is not perfect. now they are going to have to go to court and get this done. it was only yesterday that they reiterated that they intended to follow through with the terms of the original deal. yet here we are, me on a jet plane, you in the studio, and elon musk walking away from the deal. caroline: just remind us, he talks about not enough information, he talks about multiple requests. i thought twitter had been delivering information regarding bots. ed: in the letter, elon musk's attorneys say by twitter's own admission in the communications they have made since the
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beginning of may and through june, that the data was incomplete. twitter's argument is that a third-party, installed by the musk team, a third party chosen by twitterk, cannot verify the level of bots on the platform. the reason being that twitter's methodology for verification uses a mix of private data that they hold as the platform operator, and private data such that they are presenting and public data. only twitter has access to that. and that is what the discussion is about how complete that data was. caroline: remind us because elon musk is due -- i think he has already arrived, or due to arrive at sun valley. meant to be giving a speech tomorrow. the key issue is alan", do they have an advisor on the deal? this could be an amazing meeting among the executives. i understand the ceo and the cfo of twitter are at sun valley. ed: i will just say out loud, i wish i was still in idaho, for i wish i was with you in the
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studio. this is the most crazy story of my career and lifetime. that allen and co. is an advisor on the twitter side. allen and co. is a long-standing advancement inc. for twitter -- investment bank for twitter. no one saw them in the same space. as you know, i asked them last night if they were worried about elon musk walking away. twice, they declined to answer the question. . 24 hours later, he walks away. there we go. caroline: ed ludlow, we will let you go for a moment. thank you for jumping on the phone with us. ed ludlow, with the analysis. we have expert analysis from a senior analysis on twitter, dan ives who has a rating neutral on twitter and a price of $38.79. 12 month price target of $43. you are a busy man. what do you make of this walk away? dan: caroline: caroline: for twitter -- dan: for twitter, it is a
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nightmare scenario. stocks will be $25 to $30 on monday. they face a brutal court battle with musk. this has been a circus show in terms from the beginning. it never made sense as to why musk wanted to buy it. now the way it ends, it really puts them into a hard place. the street is going to really have a hard time with this in terms of twitter being viewed as damaged goods. caroline: i am interested, and originally when we were talking to david westin, $44 billion was deemed fair value for overall twitter. i think it was said by goldman sachs. why do you have a price of $39? how much has that -- how much of that has eroded since elon musk put in his offer? dan: $44 billion from the beginning never made sense. that is why there was no other bidder within miles. we saw fair value for twitter was somewhere in na acquisition
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of $42 billion to $45 billion. now, as that has come to the forefront, i think now, this is a stock that will have a two in front of it because of those metrics and also. the market has changed so much since the deal. whether it is musk getting cold feet, and it sends us into a tailspin in terms of twitter. i think musk comes out with a black guy in terms of how this was handled. caroline: i agree. many would agree in terms of like, how an organization's, new m&a offers. i am interested in your take from it when he for billion dollar price tag. what is it about the botsd, i thought we knew about the bots? what is it from a twitter perspective could have been done better on that? dan: is it 5% or is it 20%? i think even though the bot issue has always been a black cloud over twitter's name, you
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go back over the years, now it comes up to how big is that number? because that is the metric. on the other side, others will argue that musk is a scapegoat. he, basically woke up one day decided not to do it, in typical musk fashion. now the knives will be sharpened going into what is going to be a games it -- a game of thrones court battle. caroline: we currently understand that the twitter board is committed to closing this transaction, according to brett taylor. the twitter board is planning legal action to enforce this agreement. how much of a money suck is that? dan: i think right now, twitter is going to officially come out with that stance. this deal, when the stock was trading at $38, now the question is, is there still some chance, some renegotiation that happened? think it is too much at this
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point. monday, twitter will be looking at the stock with a two in front of it, probably when he five, high 20's. this starts to go into freefall. caroline: dan ives, we want to thank you so much. the analyst over at wedbush securities putting a note on this deal. the twitter board is planning legal action to force this agreement, coming from brett taylor, the chairman of twitter. a busy man, also the co-ceo of salesforce. he is on the board of twitter. and he is saying look, we will be fighting this, they intended to close the transaction at $54.20. they received the notice from musk may close this transaction. for all of us, this is bloomberg in new york. have a good weekend.
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