It still doesn't make sense to me why this deal was ever thought to be a good idea in the first place. Did they think Elon was going to simply pay up and carry the misinformation torch with HIS vast wealth. Was twatter struggling to pay the bills. I just don't understand why they allowed themselves to be exposed the way Musk has exposed them.
Because they had no choice. It is the regulation from the SEC that you act in the shareholders interest. Unless you can prove that Musk never had the offer money, they had to deal make with him. The alternative was personal liability for any shareholder that sued the directors for not making the money the deal would have given the shareholders.
It still doesn't make sense to me why this deal was ever thought to be a good idea in the first place. Did they think Elon was going to simply pay up and carry the misinformation torch with HIS vast wealth. Was twatter struggling to pay the bills. I just don't understand why they allowed themselves to be exposed the way Musk has exposed them.
No choice. Investors would have sued them for breach of fiduciary duty if they didn't accept. He's toying with then, forcing them to self destruct.
My point was why initiate the deal in the first place, knowing it was a fraudulent cesspool.
Because they had no choice. It is the regulation from the SEC that you act in the shareholders interest. Unless you can prove that Musk never had the offer money, they had to deal make with him. The alternative was personal liability for any shareholder that sued the directors for not making the money the deal would have given the shareholders.