# Twitter goes private. What now?

**URL:** <https://community.trading212.com/t/twitter-goes-private-what-now/55936>\
**Category:** 🤝 Help\
**Created:** [April 25, 2022, 7:59pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936 "2022-04-25T19:59:49Z")\
**Posts on this page:** 20\
**Page:** 2

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**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\
**Post date:** [April 27, 2022, 8:59pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/21 "2022-04-27T20:59:29Z")

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And if he gets called, after a high selloff? (TSLA is known for its high volatility, many provoked by Musk itself.)

I suppose it’s overcollateralized. Or maybe not, and if it isn’t at least 100% collateralized, there will be a high leverage factor.

A lot of leveraged investors (giving shares as collateral) get burned. The last known whale, Hwang/Archegos Capital Management, had a huge impact in his family office and in the investment banks that allowed his leveraged trades (today, Hwang was arrested).

> **[Archegos Capital Management](https://en.wikipedia.org/wiki/Archegos_Capital_Management)**
>
> Archegos Capital Management was a family office that managed the personal assets of Bill Hwang. On April 27, 2022 Hwang was indicted and arrested on federal charges of fraud and racketeering.
> On March 26, 2021, Archegos defaulted on margin calls from several global investment banks, including Credit Suisse and Nomura Holdings, as well as Goldman Sachs and Morgan Stanley. The firm had large, concentrated positions in ViacomCBS, Baidu, Vipshop, Farfetch, and other companies, and the firm's use o...

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**Author:** ![Dougal1984](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/dougal1984/32/14304_2.png) [@Dougal1984](https://community.trading212.com/u/Dougal1984)\
**Post date:** [April 27, 2022, 9:40pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/22 "2022-04-27T21:40:22Z")

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> [@RLX](#):
>
> And if he gets called, after a high selloff? (TSLA is known for its high volatility, many provoked by Musk itself.)

Tesla MCAP is about 900bn, Musk owns what 17% so 150bn say, but news says Musk is worth 264bn, so borrowing 50bn against that doesn’t seem so bad…

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**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\
**Post date:** [April 28, 2022, 8:05pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/23 "2022-04-28T20:05:43Z")

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We don’t know if Musk have given some stocks as collateral on other previous situations. 😉

For example, to finance his other projects and even to buy meme cryptos.

Net worth isn’t necessarily 100% accepted as collateral. As lenders can refuse some types of collateral. (E.g. having a loan and giving cryptos as collateral or if accepted, as it is very volatile, the lenders could demand a higher overcollateralization. Or for example, other iliquid or exotic assets given as collateral.)

Bottom-line. Musk could be worth 264bn, but lenders only accept a % of it as potential collateral (not considering/accepting some as collateral).

EDIT:  
PS: Banks have regulations that classifies their balance sheet assets according to their risk, with risky assets penalizing the banks’ capital requirements/stress tests.

> **[Basel III](https://en.wikipedia.org/wiki/Basel_III)**
>
> Basel III is the third Basel Accord, a framework that sets international standards for bank capital adequacy, stress testing, and liquidity requirements. Augmenting and superseding parts of the Basel II standards, it was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing minimum capital requirements, holdings of high quality liquid assets, and decreasing bank leverage...

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**Author:** ![random53](https://avatars.discourse-cdn.com/v4/letter/r/aeb1de/32.png) [@random53](https://community.trading212.com/u/random53)\
**Post date:** [May 13, 2022, 11:20am UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/24 "2022-05-13T11:20:11Z")

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Looks like this is on hold…  
[Elon Musk on Twitter: “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users https://t.co/Y2t0QMuuyn” / Twitter](https://twitter.com/elonmusk/status/1525049369552048129?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet)

Good example that you can’t assume anything until all the paperwork is signed.

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**Author:** ![trade](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/trade/32/6043_2.png) [@trade](https://community.trading212.com/u/trade)\
**Post date:** [May 13, 2022, 11:47am UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/25 "2022-05-13T11:47:17Z")

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dude I swear, if this doesn’t get through…

I’m tired of losing money 😃

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**Author:** ![Dao](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/dao/32/20739_2.png) [@Dao](https://community.trading212.com/u/Dao)\
**Post date:** [May 13, 2022, 1:12pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/26 "2022-05-13T13:12:19Z")

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5% is still a pretty big number all things considered. did he think it was more? I don’t know much details about elon’s twitter interest saga haha

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**Author:** ![Zrtz](https://avatars.discourse-cdn.com/v4/letter/z/eb9ed0/32.png) [@Zrtz](https://community.trading212.com/u/Zrtz)\
**Post date:** [May 13, 2022, 1:53pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/27 "2022-05-13T13:53:45Z")

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Could also be that as the market is crashing he’s having a rethink about paying too much and wants out 🤔

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**Author:** ![Vedran](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/vedran/32/182_2.png) [@Vedran](https://community.trading212.com/u/Vedran)\
**Post date:** [May 13, 2022, 2:04pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/28 "2022-05-13T14:04:24Z")

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Afaik, it was disclosed thah below 5% of twitter accounts were fake, by the board/internal report. However it seems likely that number is more then claimed 5%…

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**Author:** ![RumNCoke](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rumncoke/32/19204_2.png) [@RumNCoke](https://community.trading212.com/u/RumNCoke)\
**Post date:** [May 14, 2022, 11:14am UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/29 "2022-05-14T11:14:54Z")

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Does it slightly annoy you that Musk has become bigger than both TWTR (and also TSLA). Both have become what I now call “celebrity stocks”. The man himself has become a bigger spectacle than the actual companies.

That said I know many will gain a decent profit once the sell off takes place, myself included.

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**Author:** ![Scott](https://avatars.discourse-cdn.com/v4/letter/s/3e96dc/32.png) [@Scott](https://community.trading212.com/u/Scott)\
**Post date:** [May 16, 2022, 2:47pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/30 "2022-05-16T14:47:51Z")

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It’s seem like Musk would rather find a way to get out of this deal, pay the 1million get out clause and offer a lower share price for the company purchase.

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**Author:** ![MaxZorin](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/maxzorin/32/16530_2.png) [@MaxZorin](https://community.trading212.com/u/MaxZorin)\
**Post date:** [May 16, 2022, 5:30pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/31 "2022-05-16T17:30:25Z")

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I believe its a 1 Billion get out clause.

He’s right to make sure Twitters numbers are correct. The real amount of bots and fake accounts will obviously turn out to be far more than they said, lowering the value.

Personally i think he’s opening a can of worms with this one.

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<div class="post-metadata">

**Author:** ![trade](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/trade/32/6043_2.png) [@trade](https://community.trading212.com/u/trade)\
**Post date:** [May 16, 2022, 9:30pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/32 "2022-05-16T21:30:41Z")

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Yooo cheqp twitter brooo, make millionz, lambooo

Or maybe not. Nobody knows.

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<div class="post-metadata">

**Author:** ![trader.view](https://avatars.discourse-cdn.com/v4/letter/t/b4bc9f/32.png) [@trader.view](https://community.trading212.com/u/trader.view)\
**Post date:** [June 14, 2022, 4:02pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/33 "2022-06-14T16:02:54Z")

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> [@trade](#):
>
> Nobody knows.

Still! Not much discussion in the press

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<div class="post-metadata">

**Author:** ![trade](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/trade/32/6043_2.png) [@trade](https://community.trading212.com/u/trade)\
**Post date:** [July 9, 2022, 7:26am UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/34 "2022-07-09T07:26:35Z")

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> **[Elon Musk officially tries to bail on buying Twitter](https://www.theverge.com/2022/7/8/23200961/elon-musk-files-back-out-twitter-deal-breach-of-contract)**
>
> He’s officially filed.

ded

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<div class="post-metadata">

**Author:** ![trade](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/trade/32/6043_2.png) [@trade](https://community.trading212.com/u/trade)\
**Post date:** [July 11, 2022, 11:06am UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/35 "2022-07-11T11:06:09Z")

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> <https://twitter.com/elonmusk/status/1546344529460174849>

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<div class="post-metadata">

**Author:** ![Scrooge\_McCodf](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/scrooge_mccodf/32/18951_2.png) [@Scrooge\_McCodf](https://community.trading212.com/u/Scrooge_McCodf)\
**Post date:** [July 11, 2022, 11:29am UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/36 "2022-07-11T11:29:57Z")

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I don’t believe a single thing musk says nowadays, his ego is completely out of control. Twitters lawyer group look like an absolute dream team, that wouldn’t take on a case they aren’t likely to win.

I don’t think he’ll be forced to buy it fwiw, but an incoming Tesla share dump and a significant shareholder settlement are coming IMO.

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<div class="post-metadata">

**Author:** ![RLX](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/rlx/32/7051_2.png) [@RLX](https://community.trading212.com/u/RLX)\
**Post date:** [July 11, 2022, 8:23pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/37 "2022-07-11T20:23:54Z")

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> [@Scrooge\_McCodf](#):
>
> I don’t believe a single thing musk says nowadays

Buy the rumors, Sell on the news.

Or just be contrarian to Musk public statements. His statements are made deliberately to influence the price movements. In the past, it was for Tesla stock, he was hit by SEC numerous times, then he went to Wild West Crypto World (no regulator to punish him), now that crypto bubble is bursting, he turned to stocks.

Bottom-line, Musk is a Pumper and Dumper.

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<div class="post-metadata">

**Author:** ![Zrtz](https://avatars.discourse-cdn.com/v4/letter/z/eb9ed0/32.png) [@Zrtz](https://community.trading212.com/u/Zrtz)\
**Post date:** [October 4, 2022, 7:13pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/38 "2022-10-04T19:13:35Z")

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I get there’s a rumour Musk is going ahead with the purchase on the original price but why stop the trading tho?

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<div class="post-metadata">

**Author:** ![Zergui](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/zergui/32/14620_2.png) [@Zergui](https://community.trading212.com/u/Zergui)\
**Post date:** [October 4, 2022, 7:17pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/39 "2022-10-04T19:17:03Z")

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There was a trading halt from the exchange because of the high volatility (halt it automatic when the best selling price is also the highest price in the book for 10min straight, and conversely on the downside.)

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<div class="post-metadata">

**Author:** ![trade](https://dub1.discourse-cdn.com/flex013/user_avatar/community.trading212.com/trade/32/6043_2.png) [@trade](https://community.trading212.com/u/trade)\
**Post date:** [October 4, 2022, 7:24pm UTC](https://community.trading212.com/t/twitter-goes-private-what-now/55936/40 "2022-10-04T19:24:44Z")

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But no worries if u are using Dark Pools nobody limits you

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