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In similar news: my left hand acquired my right hand today in an all stock deal valuing the combined hands at $1T. Praising the announcement my arms noted on th
by legendofbrando 2y ago
In similar news: my left hand acquired my right hand today in an all stock deal valuing the combined hands at $1T. Praising the announcement my arms noted on the deal: “With these two hands now together, there’s nothing our combined fist of might can’t do.” Competitors, my left and right feet, declined to comment on the merger but are said to be in their own separate talks about a deal.
- permo-w 2y agoright but you don't have $1T to do that, whereas clearly he has however much money he's paid for it. it's a weird thing to do, but if he has the money to do it then meh?
- ddtaylor 2y agoIn similar news: my left hand acquired my right hand today in an all stock deal valuing the combined hands at $250,000. Praising the announcement my arms noted on the deal: “With these two hands now together, there’s nothing our combined fist of might can’t do.” Competitors, my left and right feet, declined to comment on the merger but are said to be in their own separate talks about a deal.
- permo-w 2y agochanges nothing
- achierius 2y agoYeah it does, presumably he has that much money, which invalidates your original point. Hope that helps explain the situation!
- permo-w 2y agoit doesn't invalidate anything; my original point was that Musk has this much money, meaning that he's just moving money around, meaning that this pretentious analogy is not actually making any kind of insightful point whatsoever. what Musk is doing is taking two entities already with a high market value and then merging them, he's not just deciding randomly that 2 irrelevant things have value. how much money this guy has is irrelevant. it's just a shitty attempt at satire, which I cannot stand
- pavlov 2y agoHe's not moving any money around. The acquisition is entirely in stock. Shareholders of X are receiving xAI stock in exchange for their X shares. They don't get any cash. Musk says the new combined entity is worth $80B, but that's on paper. The company certainly doesn't have that much cash or liquid assets. The valuation is based on xAI's previous funding round + whatever number they decided to assign to the X assets + the magic of "synergy" produced by this deal. In other words, it's not based on anything real. (Accountants call this "goodwill.")
- permo-w 2y agoright but those entities quite clearly have an existing market value in the region of those numbers. this guy's arms and legs do not. it's a poor analogy that's trying to be too clever
- pavlov 2y agoMaybe the guy is pretty good at basketball and sincerely thinks he’s going to be the best player in the world next year? That would make his arms and legs awfully valuable. Musk’s xAI is in a similar place. It’s an also-ran in a crowded space and it’s not making any money while spending billions. But the founder certainly has great faith in it. Is $80B the right value to assign to that faith? Who knows.
- chewbacha 2y agoThey are both private companies. Neither has a true market value because they are not on a market.
- permo-w 2y agothat's not how market values work and there's no such thing as a "true market value". my car has a market value, it not being for sale right now does not change that.
- 2y ago
- kristjansson 2y ago"I merged my checking account ($X) with my savings account ($Y) in an all cash deal valuing the combined entity at $X+Y"
- pqtyw 2y agoExcept there is no money involved. xAI has nowhere near that amount of money in cash or in any liquid assets. The valuation hardly means anything, it might be worth $10 billion, it might be worth $100 billion nobody can tell at this point.
- throawayonthe 2y ago[dead]
- Maxatar 2y agoxAI doesn't have the money to buy X either. This acquisition doesn't involve any cash whatsoever.
- deadbabe 2y agoWhat are you gonna do with two hands?
- osmsucks 2y agoWas this announced at an all hands?
- disqard 2y agoThis sounds like yet another arms dealer.
- deleted 2y ago[deleted]
- l33tc0de 2y ago[flagged]
- sagarpatil 2y agoI haven’t laughed this hard in a long time. This should be the top post.
- deleted 2y ago[deleted]