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Twitter ‘no longer exists’ as Elon Musk merges it with X Corp
- ggm 3y agoCorporate restructure is a tool of tax avoidance, corporate restructure is a tool of compliance-dodging. Corporate restructure won't make Twitter's fundamental problems go away, it's a mechanism to make 'pass the parcel' musical chairs games wind up with "somebody else" losing the money. Tricks to keep control and shed blame are not uncommon. News ltd did it a decade back with "A" and "B" class shares. Murdoch got a lot of heat for this, and wound up having to modify it, some of it gov pressure, some of it the B shareholders. It was also around the time he inflated the value of News ltd by the goodwill inherent in the mastheads, just before the value of newspapers tanked, so he also had to do a massive write-down of value. Which now I write it, feels a lot like what Musk has done: take something with $40b book price, incur debt, then wipe out $20b of value by stupid management tricks "cost cutting" and now.. restructure. So.. the restructure is either about debt, or control, or both. Maybe his "B" class shareholders forced him? (ie, the people who Musk brought in to fund the purchase, the middle eastern banks and others)
- m_ke 3y agoI mentioned when the deal happened that he might bring it under X and use all of the losses he's about to take on this deal to avoid ever paying taxes again. https://news.ycombinator.com/item?id=33603794 https://news.ycombinator.com/item?id=33603794