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The sequence of events: Elon doing a leveraged buyout of X, then xAI funding, then debt transfers to X, then the xAI–X stock deal. Now the proposed SpaceX–xAI
by caust1c 8mo ago
The sequence of events: Elon doing a leveraged buyout of X, then xAI funding, then debt transfers to X, then the xAI–X stock deal. Now the proposed SpaceX–xAI merger appears to have shifted X’s financial burden from Musk personally toward xAI investors and, potentially, future SpaceX shareholders.
This is speculative, of course, but yeah seems likely.
- lotsofpulp 8mo agoSo what? People who buy SpaceX shares should take into account all of its debt when deciding how much to pay for a share.
- estearum 8mo agoJust like people should've thought about all the Related Party transactions when deciding how much to pay for Enron.
- lotsofpulp 8mo agoAre you suggesting there is straight up Enron style legally defined fraud in this deal? What is being hidden? And yes, agency risk is always a thing. It’s part of life.
- ahmeneeroe-v2 8mo agoWon't someone think of the future SpaceX shareholders!
- drsalt 8mo agoWon't everyone essentially be a shareholder indirectly? so yeah, someone should think about it.