Elon Musk accepted Twitter deal without doing 'initial due diligence': Former SEC chair



Former SEC Chairman Harvey Pitt argues that Elon Musk demanding clarity on fake accounts in order to proceed with his Twitter purchase is a ‘negotiating ploy.’

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21 comments

  1. If they filed fraudulent numbers without telling how they estimated the numbers how was he supposed to do due diligence

  2. doesn't change the fact of the massive fraud Twitter committed with the SEC in filing an incredibly inaccurate basis for the assessment of the company's value

    fraud is fraud – regardless if is discovered early or later in a deal that is in progress and not at all finalized

  3. Lol
    Suck Elon's chocolate committee gona uncover that Twitter knew the true figure for fake account even though it's "highly unlikely"
    And this old gentleman gonna be pissssssed
    I think that everything is going exactly the way Elon has planned.

  4. Musk is exposing Twitter for being a cash cow, shell company and a money pool to dip into and yank out all the spoils or any money generated.

  5. Fraudulent Reporting pretty much invalidates the deal in this instance it facilitates an inflated worth of the company which puffs up the share price. All bets are off where fraud is concerned. This has become so prevalent the former Chair of the SEC attempts to trivialize false reporting. Since when is normalizing fraud okay?

  6. Dont be fake news… You guys have these experts on that dont seem to know dog doo..
    I have bought businesses. You can not know or see everything until you make a deal and go into escrow and sign agreements. Then you have your due diligence period and upon your finding you have a period to renegotiate.
    Now of course twitter knew everything and if not they are negligent business owners. Also if they knowingly disclosed false information in order to make the business seem worth more and if they were screwing over their customers by charging them more by again using false information then the agreements are void and elon has every right to be forward the findings to the public.
    What would you like? For him to keep hush and let someone else get screwed and corruption to continue to the customers? Really?
    It becomes an ethical stand at that point and Elon would be in the right. I do not think Twitter wants more digging around to go on. Just a hunch.
    You sir should not call yourself an expert. Put down your books and go get some real experience before you talk.

  7. What a biased prat that guy is.

  8. Understanding the manipulation of the corrupt internet and Twitter. Was a conspiracy of criminal wrongdoings. Of swindling Elon Musk. Elon Musk needs. To file criminal affidavits. In place Twitter's owners in the foundation in prison for this type of conspiracy and they should include the attorneys that represented this illegal action and scam against Elon musk. This needs to be. Have a criminal justice level not civil procedures. The people in Twitter need to go to prison.

  9. Yeah there is no way Twitter is not guilty of fraud if they have a 20% base of fake accounts. if not Fraud to musk it is fraud to advertisers. This will either end in two ways, Twitter being destroyed by it's own incompetence of Musk buying it out for pennies on the dollar.

  10. This guy wrong may be lying on purpose. These things are done after the offer with the help of the company. 5%+or- is alot less than 20%+. This is what escrow is for, to check before you pay. No this was Twitter's responsibility. they did lie they did commit fraud. Do not listen to this guy he has some kind of bias for some reason.

  11. Who among us has never contracted to buy a house before the inspections were done?
    Not anyone I know.

  12. He's got every right to look under twitters hood before buying.

  13. Musk will get what he wants and buy twitter they want/ need his money now and will go along with what ever he wants.

  14. ELON IS CON MAN, HE NEVER WANTED TO BUY TWITTER, HE JUST WANTED PUBLICITY , CHEAP PUBLICITY, WELL THE IDIOT NOW HAS TO PAY 1 BILLION ON PENALTY FOR HIS BREACH OF NDA , HE NOW HAS SHOWN HIS REAL FACE AND HUGE EGO TO THE WHOLE WORLD, TESLA IS WAY OVERPRICE , IT WILL KEEP ON GOING DOWN AND DOWN.

  15. just imagine someone thinking a guy who made both tesla and spacex would not do initial due diligence about a big investment like this laughable

  16. I hate this narrative. The deal was NEVER finalized or accepted. This IS the due diligence. They are still negotiating.
    And how do they "estimate" thier numbers. How can they not be CERTAIN. That is ridiculous.
    And how is the SEC not doing thier own due diligence. 🤔

  17. Musk based his offer on publicly disclosed information by Twitter. Turns out that Twitter has been lying and defrauding it's investors and users for years and we have them on video admitting so. Musk will win.

  18. Twitter commit fraud.
    Yoe know. Only for you. But don't tell nobody.

  19. I really want to like this website I used as name because they made me $11000 through their paypal hack

  20. 20% vs 5% is much much higher. Harvey Pitt can’t be trusted.

  21. Maybe this was his plan all along. If company is BSn price goes down.