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\n

So the thing about Elon Musk is that he\u2019s cliqued up \u2014 specifically with the so-called PayPal Mafia<\/a>. If you haven\u2019t heard of it before, it\u2019s a group of influential men in Silicon Valley who all used to work at PayPal. <\/p>\n
Today, I\u2019d like to focus our attention on a member of the PayPal Mafia: David O. Sacks, the former COO of PayPal and current venture capitalist<\/a>. Sacks\u2019 battle with Twitter over a subpoena the company issued in its lawsuit against Musk is a direct demonstration of the downside of being a made man.<\/p>\n
\nA Freudian would have a field day!<\/q><\/aside>\n<\/div>\nIf you\u2019re in a group with Musk, Peter Thiel, Reid Hoffman, Max Levchin, and the literal co-founders of YouTube<\/em> and Yelp<\/em>, you know, you\u2019re in pretty rarified air. In fact, for a long time, it seemed the PayPal Mafia was one of the clearest examples of how networking benefits the ambitious. <\/p>\n
These guys sometimes invest together or in each other\u2019s ventures. Sacks is, for instance, an investor in Musk\u2019s tunnel endeavor, The Boring Company. And even though Sacks, Thiel, and Levchin ran Musk out of PayPal in 2000, they all went in together as executive producers on Thank You For Smoking<\/em> (2005), a darkly funny Aaron Eckhart vehicle about a disgraced tobacco lobbyist. The movie, based on a book by Christopher Buckley, is a libertarian-friendly fable about how, if you\u2019re glib enough, you can get away with anything.<\/p>\nHere in reality, Sacks\u2019 motion to quash<\/a> Twitter\u2019s subpoena is a bonanza for billable hours, and Twitter\u2019s lawyers are, hilariously, alleging that he\u2019s doing it for clout. <\/p>\n
Sacks was subpoenaed by Twitter \u2014 as was everyone who\u2019s anyone in Silicon Valley<\/a> \u2014 because, according to Twitter, Sack was \u201ca potential investor in the merger Musk seeks to escape.\u201d In response, Sacks posted a Mad Magazine<\/em> cover displaying a middle finger and a video of someone pissing on a subpoena. <\/p>\n
This clip is from The Wolf of Wall Street<\/em>, and the character pissing is based on a real-life guy who really went to jail for money laundering and securities fraud<\/a>. A Freudian would have a field day!<\/p>\n
In both Sacks\u2019 and Twitter\u2019s filings, there\u2019s a petty back-and-forth about whether an August 10th phone call was a \u201cmeet and confer\u201d or not. This kind of thing, funny as it is, does run up the billable hours. Twitter is asking Sacks to pay for their lawyers, and Sacks is asking Twitter to pay for his. Congratulations to the lawyers, who are the real winners here.<\/p>\n
\nTwitter says the motion to quash is just saving face<\/q><\/aside>\n<\/div>\nTwitter also says Sacks was lying about not being involved in the Twitter deal and that Sacks even signed a non-disclosure agreement with Musk to evaluate whether he should invest in Twitter. And then it gets to the matter of subpoenas in two states, California and Delaware.<\/p>\n
Sacks\u2019 lawyers complain he\u2019s being served with duplicate subpoenas. Twitter says that\u2019s only because Sacks is trying to give the company the runaround in California. What\u2019s more, Twitter says the motion to quash is just saving face: Sacks announced on his podcast, All-In<\/em>, that he was going to quash \u2014 and now he had to follow through. Savage stuff and pretty fun to read. I can\u2019t speak to the legal merits of this dispute, but in terms of writing quality, Twitter wins by a wide mile.<\/p>\nSacks\u2019 objection to the subpoenas is that, essentially, complying is too onerous. Here\u2019s what Sacks says on the podcas<\/a>t:<\/p>\n
\nI have no involvement in this thing, but they sent me the broadest ever subpoena. It\u2019s like, 30 pages of requests. And now I gotta hire a lawyer to go quash this thing. Because they basically want any of my communications with any of my friends over the last six months. It\u2019s insane.<\/p>\n<\/blockquote>\n
If I thought Sacks spent a lot of quality time hanging out with, let\u2019s say, high school teachers, mechanics, poets, or social workers, I would agree it would be insane to subpoena all his friends. But it seems like Sacks\u2019 nearest and dearest are serious Silicon Valley players. <\/p>\nLike: The All-In Summit got subpoenaed.<\/em><\/a> <\/em>That event was the site of some of Musk\u2019s remarks about spam and bots in May<\/a>. And part of the conceit of All-In<\/em> is that the hosts are IRL friends. These \u201cbesties,\u201d besides Sacks, include: Chamath Palihapitiya, the SPAC King of Silicon Valley; Jason Calacanis, a Silicon Valley fixture; and David Friedberg, a literal CEO at a holding company for startups<\/a>. <\/p>\n
\nThe subpoenas are the downside to being mobbed up<\/q><\/aside>\n<\/div>\nIn his motion to quash, Sacks admits he sent some emails to investment bankers but didn\u2019t get involved in the Twitter deal. That doesn\u2019t especially surprise me? Sacks should<\/em> have looked at the deal! Signing an NDA makes sense, even if he\u2019s only looking at the deal to make his pal Musk happy because that\u2019s an important relationship!<\/p>\n
One of the things that I hear ad nauseam about being successful in business is that it\u2019s who you know<\/em>. That\u2019s part of why the PayPal Mafia is so famous. They are all rich and important, and they have an in on each other\u2019s new investment opportunities, which can make them even richer.<\/p>\nThe subpoenas are the downside to being mobbed up. Being close to Musk can be lucrative, but it also makes you vulnerable to getting dragged into his chaos<\/a>. Twitter says Musk discussed the deal with just four people, and Sacks was one of them. Sacks says Twitter is misinterpreting Musk<\/a>, which is weird \u2014 he doesn\u2019t<\/em> want to be known as one of Musk\u2019s close confidants? Bit late for that, bestie.<\/p>\n<\/div>\n

<\/br><\/code><\/p>\n
Source: https:\/\/www.theverge.com\/2022\/9\/1\/23331732\/elon-musk-twitter-david-sacks-paypal-mafia-subpoenas-clout<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Source: So the thing about Elon Musk is that he\u2019s cliqued up \u2014 specifically with the so-called PayPal Mafia. If you haven\u2019t heard of it before, it\u2019s a group of influential men in Silicon Valley who all used to work at PayPal. Today, I\u2019d like to focus our attention on a member of the PayPal […]<\/p>\n","protected":false},"author":1,"featured_media":13798,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[62,8],"tags":[63],"class_list":["post-13797","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts","category-technology","tag-podcasts"],"yoast_head":"\nIs Elon Musk\u2019s pal messing with Twitter to score bro points? - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/09\/02\/is-elon-musks-pal-messing-with-twitter-to-score-bro-points\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Elon Musk\u2019s pal messing with Twitter to score bro points? - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: So the thing about Elon Musk is that he\u2019s cliqued up \u2014 specifically with the so-called PayPal Mafia. 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