According to tech entrepreneur Mark Cuban, Elon Musk’s latest offer to buy Twitter is “f**king with the SEC”. Cuban said it’s the latest elaborate attempt to show up to the Securities and Exchange Commission (SEC).
Mark Cuban Says Musk “F**king with the SEC”
Earlier, Elon Musk offered to buy social media platform Twitter at $54.20 per share. He also stated his intention to take the company private.
However, Mark Cuban said these statements are part of Musk’s elaborate digs at the SEC. In 2018, the SEC sued Musk for making false and misleading statements about Tesla’s finances.
At the time, Mush said that he secured funding to take Tesla private.
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Musk’s offer, complete with a 420 reference, comes with a declaration. In order to unlock Twitter’s full potential, Twitter needs to transform into a private company.
Mark Cuban noted that Musk’s Twitter offer was remarkably similar to the 2018 brush with the SEC. “My conclusion, @elonmusk is f—king with the SEC,” Cuban tweeted.
“His filing w/the SEC allows him to say he wants to take a company private for $54.20,” he added.
Then, the billionaire compared Musk’s Twitter offer to his previous declaration for Tesla.“‘Am considering taking Tesla private at $420. Funding secured,” Musk tweeted then.
Musk To Profit From His Tweets
As a result of Musk’s tweets, his 9.2% stake in Twitter stands to benefit greatly. “Price go up. His shares get sold. Profit [up] SEC like WTF just happened,” Cuban summarized.
At the same time, Musk also revealed that his legal team is petitioning for an end to his SEC settlement. The settlement included a consent decree.
This means that Tesla lawyers will need to clear Musk’s tweets pertaining to Tesla or its business.
However, the SEC maintains that Musk’s Tesla tweet constituted fraud. Musk himself argued that he tweeted the truth. Then, the SEC dispute resurfaced when Musk appeared at a TED conference in Vancouver.
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There, he discussed his plan to purchase Twitter hours before this became public knowledge.
Musk Has Enough To Buy Twitter
During the TED conversation, Musk insists that he has enough money to buy 100% of Twitter.
He also reminded the audience that back in 2018, he also had the backing to fund taking Tesla private. “With Tesla back in the day, funding was actually secured. I want to be clear about that,” he said.
However, Musk defended his settlement with the SEC over the Tesla issue. He said that at the time, banks warned that they would cut off funding if the cases persisted.
“So that’s like having a gun to your child’s head. So I was forced to concede to the SEC unlawfully. Those bastards,” he said.
Mark Cuban Reveals Elon Musk’s Actual Plan
However, Mark Cuban thinks that all this posturing is meant for something else. He believes that Musk is simply getting to profit off his Twitter investment.
Cuban maintained that Twitter’s current board won’t sell the company. However, the threat of Musk’s buyout will push them to “get a friendly to come in and buy Elon’s shares and get him out”.
Cuban thinks that major tech firms such as Google or Facebook will consider buying Twitter, including Musk’s own shares.
Watch the Yahoo Finance news video reporting that Twitter rejecting Musk’s offer ‘opens the door’ for Big Tech acquisition, Mark Cuban says:
Do you agree with Mark Cuban’s assertion that Elon Musk is doing all this just to make a profit from his Twitter investment? Is this all an elaborate setup to raise Twitter’s value and then sell at a profit?
Let us know what you think. Share your thoughts in the comments section below.