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He may not be particularly leveraged, but one could argue that a significant portion of his net worth in the form of Tesla's sky-high valuation is more or less
by qzw 4y ago
He may not be particularly leveraged, but one could argue that a significant portion of his net worth in the form of Tesla's sky-high valuation is more or less "faith-based". To what extent his Twitter excursion would erode that faith and precipitate a steep drop in Tesla's stock price is still not completely known. So in that sense, it's possible to debate about whether he really "has the money" to do this deal.
- JumpCrisscross 4y ago> it's possible to debate about whether he really "has the money" to do this deal Sure, but given the facts on the ground, he has more than enough capital to personally fund the equity. (The debt, LBO style, is held on Twitter's books.) We know there remain commitments from other investors for the equity, so that alone should draw a line under such discussions. Elon Musk absolutely can fund this deal. He may not want to. And that isn't true in every state of the world. But currently, and in any proximate world state, him not having the money isn't an issue.
- lupire 4y agoLBOs are amazing. You can steal any company as long as you don't care if it gets bankrupted (and then you can steal its assets in bankruptcy)