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SpaceX says it has agreement to acquire Cursor for $60B

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Re: SpaceX says it has agreement to acquire Cursor for $60B

#251

Post by MPSimmons »

gpm wrote: post #204
Lonestar1440 wrote: post #195

So SpaceX bought a $60B Option on Cursor, plus a bunch of services, for $10B. If strike date comes and Cursor is in fact worth less than $60B... they can move to acquire it for that price. Or just let it "expire". And if it's worth more, they get a savage good deal. If the services were worth $8B anyway, it's hard to lose. It seems less crazy to me through this lens. A straight acquisition, today, at $60B would in fa…

Paying $10B for the option is also crazy though. Paying $10B for the thing outright and not just an option would be absurdly high.

It reportedly has a $2B ARR, and a 5x multiplier doesn't seem insane to me, but who knows, honestly

Re: SpaceX says it has agreement to acquire Cursor for $60B

#252

Post by baron816 »

qzw wrote: post #212

I just want to make the observation that this whole SpaceX IPO is turning out entirely unlike the CDOs that led to the 2008 financial crisis. There's no mixing of AAA level assets with a bunch of subprime stuff and then getting someone to buy it all as AAA. Not at all similar. Completely different. Will turn out just fine this time.

Well, there are some very important differences. 1) It’s super well known what’s going on with SpaceX. Every investor should know that there’s a lot of good stuff along with some steaming hot garbage. 2) SpaceX isn’t systemic to the economy. If SpaceX and all its subsidiaries shut down and its investors got nothing back, it wouldn’t be that big of a deal.

This type of bundling is just what conglomerates do. Is it a good thing? Not really. Many investors also hate this kind of stuff and avoid investing in these types of companies.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#253

Post by chrisweekly »

SwellJoe wrote: post #141
Lermatroid wrote: post #47

Earlier quoted context omitted.

AFAIK cursor is basically the only player right now not subsidizing tokens out the ass, and has been seeing solid growth across individual and enterprise with almost every model performing best in their harness. Not sure how that’s a serious decline.

No one wants an IDE, anymore. They're building a better horse.

Decent analogy in 2nd sentence BUT the 1st doesn't hold water. TIMTOWTDI, statements about "everyone" or "no one" are highly suspect, and the trend of code-assist -> agentic -> delegated / orchestration is just that (a trend), not a universal law. Even in a full-on maximalist yolo paperclip future, many experts will likely ALWAYS want access to a decent IDE. (Note I'm not saying Cursor is necessarily that IDE, and I'm not commenting on the valuation.)

Re: SpaceX says it has agreement to acquire Cursor for $60B

#254

Post by kakapo5672 »

jesse_dot_id wrote: post #186

Every time Musk does anything these days, it further reveals the shell game he's playing with his companies. This is going to be an Enron type of story eventually. I truly wish I had a choice to pull my tax money out of this particular subsidy.

Tesla is profitable, as a matter of public record. And SpaceX is, by all accounts, extremely profitable.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#255

Post by laughing_man »

bko wrote: post #244
jesse_dot_id wrote: post #186

Every time Musk does anything these days, it further reveals the shell game he's playing with his companies. This is going to be an Enron type of story eventually. I truly wish I had a choice to pull my tax money out of this particular subsidy.

[flagged]

Tesla isn't that profitable, but SpaceX is likely generating boatloads of cash. From what I can tell Starlink alone has a free positive cash flow of about $2 billion. I'm not sure what the launch business is worth, but it's likely a lot given the absence of domestic competition.

I have a suspicion the reason Musk wanted to combine SpaceX and X.ai is the latter gives him losses to write off against all that cash from the former plus a chance for a big AI payoff.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#256

Post by drivebyhooting »

robertjpayne wrote: post #243
curuinor wrote: post #236

Earlier quoted context omitted.

It is adversely selected, but it's not debt, it's equity, so price action can go real fast and nobody will be burned except folks who soberly-or-not opted into this. Everyone _knows_ Elon is the way he is, so nobody will be _surprised_ at things. No surprise, no crisis.

They're going to force a S&P500 index listing on IPO day so we're all going to be forced to baghold this regardless of if we want to or not unless you've got $0 in any major retirement fund.

Oh yes, thanks for reminding me. I’m going to cash out the 401(k).

Re: SpaceX says it has agreement to acquire Cursor for $60B

#257

Post by Ifkaluva »

curuinor wrote: post #236
qzw wrote: post #212

I just want to make the observation that this whole SpaceX IPO is turning out entirely unlike the CDOs that led to the 2008 financial crisis. There's no mixing of AAA level assets with a bunch of subprime stuff and then getting someone to buy it all as AAA. Not at all similar. Completely different. Will turn out just fine this time.

It is adversely selected, but it's not debt, it's equity, so price action can go real fast and nobody will be burned except folks who soberly-or-not opted into this. Everyone _knows_ Elon is the way he is, so nobody will be _surprised_ at things. No surprise, no crisis.

Friendly reminder that SpaceX is going straight to the index—Elon agitated for it. The 401k of everybody in America is serving as a bailout fund for X and now cursor, and whatever other trash he hovers up

Re: SpaceX says it has agreement to acquire Cursor for $60B

#258

Post by robbies »

baron816 wrote: post #252
qzw wrote: post #212

I just want to make the observation that this whole SpaceX IPO is turning out entirely unlike the CDOs that led to the 2008 financial crisis. There's no mixing of AAA level assets with a bunch of subprime stuff and then getting someone to buy it all as AAA. Not at all similar. Completely different. Will turn out just fine this time.

Well, there are some very important differences. 1) It’s super well known what’s going on with SpaceX. Every investor should know that there’s a lot of good stuff along with some steaming hot garbage. 2) SpaceX isn’t systemic to the economy. If SpaceX and all its subsidiaries shut down and its investors got nothing back, it wouldn’t be that big of a deal. This type of bundling is just what conglomerates do. Is it a g…

On point #2, they are trying to do that right now. If spacex is fast tracked into the indices, passive investors via index funds will be forced into buying.

Re: SpaceX says it has agreement to acquire Cursor for $60B

#259

Post by ValentineC »

Forgeties79 wrote: post #225
ValentineC wrote: post #203

Earlier quoted context omitted.

> Why would Elon do this if he knows full well the names X-Code and Codex are already taken? Steal their Twitter usernames anyway, just like he did mine.

Story time please lol

My @valentine got changed to @valentine_ without my consent.

https://web.archive.org/web/20150822195811/twitter.com/valen...

https://twitter.com/valentine_

(If any lawyers read this and feel up for taking this on contingency, I don't think I'm difficult to contact.)

Re: SpaceX says it has agreement to acquire Cursor for $60B

#260

Post by ScoobleDoodle »

bko wrote: post #244
jesse_dot_id wrote: post #186

Every time Musk does anything these days, it further reveals the shell game he's playing with his companies. This is going to be an Enron type of story eventually. I truly wish I had a choice to pull my tax money out of this particular subsidy.

[flagged]

SpaceX bought nearly 20% of Cyber Trucks sold in Q4. That makes me question the level of real profitability.
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