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As a business transaction: Twitters acquisition is among the worst deals in human history. As means to buy an election an Presidency: highly efficient use of c
by bonesss 5mo ago
As a business transaction: Twitters acquisition is among the worst deals in human history.
As means to buy an election an Presidency: highly efficient use of capital with an undeniable short and long-term ROI.
- BeetleB 5mo ago> Twitters acquisition is among the worst deals in human history. That he won't have to pay for. Shareholders will, as part of the SpaceX IPO.
- aniviacat 5mo agoIf shareholders have to pay the debt, then the shares will be less valuable, and Musk (whose wealth is measured in shares) will be less wealthy, no?
- BeetleB 5mo agoBy a tad. SpaceX's worth is an order of magnitude more than Twitter's debt. I doubt any serious person considering buying shares in SpaceX will spend even a moment worrying about Twitter.
- ben_w 5mo agoThey probably should. I've seen people concerned a subsidiary's GDPR fine would be calculated on the basis of the parent company's global revenue, and in Musk's case something similar has happened in Brazil where Starlink's assets were frozen and justified in part because of how Musk fails to properly delineate between his businesses.
- generj 5mo agoThe EU also lacks incentivizes to not harm SpaceX. The US government as a whole, and DoD in particular wants SpaceX around to deliver cheap mass to orbit. Europe on the other hand would love any judgements which give their rockets a chance to catchup. So they won’t temper an investigation or fines accordingly.
- saalweachter 5mo agoMusk only owns 42% of SpaceX; he only takes 42% of the loss as if he continued to own Twitter outright.
- nkozyra 5mo agoWell Twitter has other investors, too. But he'll also likely be shaving equity here and there along the way to hedge this bet.
- MBCook 5mo agoThat assumes market rationality.
- nebula8804 5mo agoToo early to write closing arguments on this. A vengeful future administration might make us realize that the entire transaction was a huge mistake.
- MBCook 5mo agoTrue. There is a “so far” on that.
- SwellJoe 5mo agoI don't know where a vengeful future administration would come from. We only have Democrats or Republicans to choose from, and Democrats have made turning the other cheek their entire purpose and political mission. They slow-rolled the investigation of Trump so long he got elected again in the meantime. The idea that any major Democrat would go after a billionaire and not just any billionaire but the biggest billionaire of them all? Absurd thought.