May 11, 2022Liked by Chris J. Karr

I want less Trump, but I don't treat his supporters that way. I don't do personal insults. I post things with actual facts and real data, but the "stolen election" believers ignore or scoff at anything that doesn't agree with their narrative. How do you suggest we engage with that mindset?

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May 11, 2022·edited May 11, 2022Author

"The problem here is that most (or all) of the best Twitter employees have stock options. Musk’s purchase has a payday attached to it, plus Musk is pretty well known for increasing the value of things he buys. Forcing the deal to be cancelled will likely depress Twitter’s stock price and value, and therefore the future value of these employees’ wallets. How much does someone have to believe in the 'dangerous for American democracy' trope to put their money and career on the line for it?"

The actions of Twitter's employees will be a key determinant of what happens to the company, but Musk is taking the company private, not just becoming majority shareholder. Stock options have a fixed value up until the date that deal closes, those options convert to actual shares, and Musk purchases all of them to take the company off the public markets. There's a fixed incentive (Musk's purchase offer) to not goof up the deal, but it's extremely unlikely that employees will see the upside in terms of private equity if Musk is successful and does manage to raise the value of the company. Given that options are a key part of employee compensation packages in the Valley (that goes *poof* on the deal closing), even if employees play nicely through this interim period, Twitter's going to have serious retention problems and we'll find out pretty quickly how much of the value Musk is purchasing resided in the company's Capital (platform and technology) versus its Labor (employees), if you don't mind me slipping into a little descriptive Marxism. Musk making noises about Trump before the deal closes will jeopardize the value in the latter.

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