Elon Musk takes over Twitter

1) Jim Cramer is an idiot.

2) But .. .. What I was saying when the deal was announced. He offered to pay way more than it was worth. ... Offered, didn't negotiate, wasn't in a bidding war of some sort. The reason is that he was made fabulously wealthy by a cheap-money Fed-inducd bubble that put the value of Tesla stock @ a multiple in crazyland and he started to believe he is a financial genius, not a guy who hit a jackpot (that wasn't due to him and his brilliance as people think). The Fed has spent the last 15 years or so (after the financial crisis) doing things that have benefited people like him (survival of the unfittest). If he was half as smart as people think he is (and I think he has a brilliant mind, he's just a bullshit artist and has confused his luck plus shenanagins with knowing something) he would have realized that the Tesla stock he is using as the currency to act the way he does is on thin ice. And amazingly, right after he did his PT Barnum act and made a binding offer on Twitter, the Fed started to pull the plug (stopped expanding the balance sheet, has made halting attempts to raise their target rate) and it has started to deflate the stock market bubble. As a result, he has a binding offer to buy a company worth maybe $15 to $20 a share in the current environment for $54.20 a share, and worse, the source of his wealth (Tesla stock, to the extent he hasn't sold billions of dollars worth) is losing its value as the bubble deflates (which he now appears to know, thus trying to get out of the deal).

3) What I also anticipated when he started to trying to back out. It would have made sense for Twitter to renegotiate A LITTLE to avoid having to tie themselves up in litigation and put a cloud over the stock. But his offer was so ridiculous, that they will never be able to sell the company for even 60 percent of what he offered, so they almost have to take his ass to court. There is tens of billions of dollars on the line for the current equity holders, and no matter what Skaden Arps does to try to drown the company in motions on Musk's behalf, he has no legit case for reneging on the deal. It sucks that Twitter is going to have to absorb a ton in legal fees, and because our judicial system is so screwed up, they can't count on the right thing happening. But honestly, a jury of kindergartners could decide it in 5 minutes.