“The components used to build the products are largely unique to the products, resulting in long lead times for ordering such component parts from suppliers,” and Twitter must give “written approval for Wiwynn to purchase the necessary components to manufacture the customer products…and expressly assumed liabilities for the procurement costs.”
So basically they were bespoke servers that are great for Twitter, custom designed, and definitely aren’t easy to just resell elsewhere, so because Twitter isn’t paying, the IT company is eating the loss right now
It sounds like in this transaction they are purely a hardware provider, they shipped the bespoke hardware to Twitter based on twitters order, musk took over, and is now refusing to pay them because he doesn’t want whatever the hardware is after having gutted Twitter, and they haven’t been paid
If it was done in knowingly and in bad faith, no I would not. With this particular case, all I know is what’s in that article which doesn’t describe the situation in detail. The court case would provide the full picture.
Who would be the bad faith actor here? Wiwynn? If they don’t have an order, that’s going to fall flat pretty fast. Seems like a pretty risky bet at $60 million. Twitter? Then it isn’t Wiwynn’s problem, Twitter can take care of their bill, and deal with their internal issues.
I don’t know. Perhaps as part of the acquisition there were some terms regarding situations like this that are in dispute. Even more nuanced, perhaps Wiwynn knowingly took advantage of the acquisition communication issues to assert a level of standing orders that should have been reconsidered.
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So basically they were bespoke servers that are great for Twitter, custom designed, and definitely aren’t easy to just resell elsewhere, so because Twitter isn’t paying, the IT company is eating the loss right now
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It sounds like in this transaction they are purely a hardware provider, they shipped the bespoke hardware to Twitter based on twitters order, musk took over, and is now refusing to pay them because he doesn’t want whatever the hardware is after having gutted Twitter, and they haven’t been paid
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Yep! It’s more nuanced than the title leads on. But “Elon bad” is the train with momentum around here.
I wouldn’t describe taking over a company and then not fulfilling obligations incurred prior to the purchase as good behavior. Would you?
If it was done in knowingly and in bad faith, no I would not. With this particular case, all I know is what’s in that article which doesn’t describe the situation in detail. The court case would provide the full picture.
Who would be the bad faith actor here? Wiwynn? If they don’t have an order, that’s going to fall flat pretty fast. Seems like a pretty risky bet at $60 million. Twitter? Then it isn’t Wiwynn’s problem, Twitter can take care of their bill, and deal with their internal issues.
I don’t know. Perhaps as part of the acquisition there were some terms regarding situations like this that are in dispute. Even more nuanced, perhaps Wiwynn knowingly took advantage of the acquisition communication issues to assert a level of standing orders that should have been reconsidered.
Who knows, speculating doesn’t move the needle.
The article sounds to me like they were selling hardware, not providing a service.
Checking their website confirms this is what they usually offer.