[ExI] what would any of us have done differently?

spike at rainier66.com spike at rainier66.com
Fri Dec 16 18:15:34 UTC 2022

-----Original Message-----
From: extropy-chat <extropy-chat-bounces at lists.extropy.org> On Behalf Of
John Klos via extropy-chat
ubject: Re: [ExI] what would any of us have done differently?

> This source says Twitter still isn't generating enough revenue to 
> cover its expenses...

>...Have you no understanding of cause and effect?

Sure do John.  Cause: Twitter was operating in absurdly expensive office
space and grossly overstaffed, resulting in its losing money so fast the end
was clearly in sight.

Effect: stockholders bailed when given the first opportunity.

Reasoning: Twitter's cash reserves were about 3.6 billion so lets round up
to 4 billion.  Musk bought out all the stockholders at 55 bucks a share for
a total of 44 billion dollars, so I am calculating he bought about 800
million shares.  

What happens when stockholders realize Jack can't pull out of the nosedive,
so they do the same estimate I just did and realize the cash reserves are
really all that this company is worth (that furniture wouldn't amount to
more than a few million at best (so the value of a failing Twitter was a
little bit of furniture and the cash reserves) so... they concluded, as I
did, that the real value of that stock was heading to about 5 bucks a share.

John, is there another way to look at it?  Do share.  Personality traits of
the CEOs and board are completely irrelevant to that calculation.

Along comes a rich guy offering 55 bucks a share but only if he can buy all
of it and make it a private company.  Shareholders were faced with a choice:
get 55 bucks a share from an evil rich capitalist, or eventually end up with
5 bucks a share.  The board estimated Jack's chances of pulling out of that
dive, and...naturally... the board voted to sell.  

John or anyone else here, would you have done otherwise had you been a
Twitter board member?

>... Do you really want to die on the hill of

I am not dying on any hills with that perfectly obvious observation.  I am
not even getting the sniffles up here.  I feel fine on this hill.  No one
has even posted a death threat.  So no, but thanks for your concern.

Would anyone here have done any differently had you been on Twitter's board
of directors?  Had you been Jack, what would you have done differently

Same here.


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