461–470 of 1001 posts
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You’re burying the lede here, which is that the Delaware Chancery Court rules that Tesla had paid a fair price for Solar City: https://www.businessinsider.com/elon-musk-wins-solarcity-tes...
Doesn’t mean it’s also a fair price this time
Seems to me he's just scammed xAI investors, who thought they were investing in an AI company, into bailing him out of his failed Twitter purchase - they are now the idiots who paid $44B for Twitter (recently valued by Fidelity at $10B), and Musk gets his money back.
IANAL, but this might be brought to court, if the company mission (as defined in their operating agreement) is to invest in AI, then buying X is not in the best interest of the company and not what the investors signed up for. It could be fraud.
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> Optimistically speaking it could happen as soon as after Nov of 2026 (midterms). The midterms could have some meaningful effect a lot sooner than that if we start seeing across-the-board primary challenges of pro-Trump Republicans. Of course, all of this is assuming that the broad Republican constituency have to some extent gone anti-Trump, and I really don't know how much basis there is for that assumption.
> all of this is assuming that the broad Republican constituency have to some extent gone anti-Trump, and I really don't know how much basis there is for that assumption. Seems to be absolutely no basis for that assumption. His approval ratings are in the mid 40s, and the people that vote in primaries aren't exactly the waverers and independents that just wanted a change from Biden. It could change when he properly t…
Okay, I know Tesla's extremely high P/E ratio is because it's worth is not just tied to cars, and so xAI priced at $20B more than Anthropic does not necessarily mean xAI's AI products are that much better than Anthropic's (e.g. presumably xAI's worth is tied to synergies with Tesla FSD, Optimus, and maybe even Neurolink)...but what products does xAI actually offer, other than Grok being an add-on for premium X subscr…
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An acquisition is a special case (for the company being acquired) and the scrutiny is somewhat higher. At least in Delaware. I have no idea what corporate law is like in Texas.
No X shareholder in their right mind will object to getting a $45 billion valuation (including debt) when their latest valuations have the company at <$10 billion.
So he just sold himself a company he already owns for a valuation that he himself assigned to that company but that was less than what he paid for it, and he paid entirely using “money” that has a made up value and which he issues himself? Wild.
And then will leverage against that valuation for loans, acquisitions, etc. Self dealing. Nobody cares anymore.
https://apnews.com/article/nikola-trevor-milton-fraud-trump-...
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I'm not sure the SEC would obviously have jurisdiction, since neither Twitter nor xAI were public companies. The FTC might care about such a merger, however, and I suppose minority investors in xAI would have some ability to file a lawsuit if they think that X was acquired over its fair value.
Xai and Twitter are not in any way competitors. What would the FTC do?
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Yeah these fantasies where musk would somehow go bankrupt by tanking Tesla and overpaying for Twitter were also wild He’s literally the richest person the earth has ever known. He’s never going to suffer financially. He has countless levers of power he can pull. The same fantasy applies to any past or current president ever spending a day in jail. He literally commands the most powerful military apparatus the world h…
> Even a sliver of that capability and influence ensures nobody will ever dare to try and slap some cuffs on him After 2028 elections, all of that umbrella cover will go away. Optimistically speaking it could happen as soon as after Nov of 2026 (midterms).
And think about what would need to happen if you'd like to see actual change in leadership of the executive branch. You'd need the House comfortably controlled by Democrats, with the Senate controlled by a supermajority of Democrats. I think that you'd need both the President and Vice President impeached, convicted, and removed from office, while preventing the current/acting President from having a new VP nominated and confirmed, so that the Speaker of the House became acting President. This seems even less likely.
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The solar city acquisition was for "only" $2.6 billion. This deal is way bigger. I'm not sure what the Tesla valuation was at the time of that deal, but I have to imagine it's proportionally way bigger too. A $45 billion acquisition when the acquirer, xAI, has an $80 billion valuation will threaten the integrity of xAI. Particularly because that's just a paper valuation and xAI doesn't have much of any revenue. If I…
Just keep in mind this is all funny money ! The valuation of those 2 companies combined should be X is heavily in debt, diminishing user base, and bleeding money. 0 profits xAI is yet to make any actual revenues outside of ... X. Also bleeding money Although I would admit, that these companies are not valued based by their economics, but rather on political power they provide to the owner.
You could make the same “bleeding money” comment about many historical social media acquisitions – at least Twitter has advertising and subscription revenue. And it’s similarly suspect to argue that xAI is failing due to lack of revenue, without mentioning the astronomical valuations of its peers in the AI space, many of which are not only lacking revenue but also have no distribution channel comparable to the scale of Twitter/X.
xAI has one of the leading models in terms of investment and user base, and it’s rapidly improving on its evaluation metrics.
Twitter/X is one of the Top 10, if not Top 5, social media properties worldwide. It has hundreds of millions of monthly active users and maintains the lead in public consciousness as the “go to” place for 1-N broadcasting of information. While Bluesky shows promise, it won’t be dethroning Twitter any time soon. When has Bluesky been the source of breaking news?
And you cannot separate these two businesses. Twitter/X and X.ai are fundamentally coupled to one another. Twitter is not only a data source for X.ai but also a distribution and retention channel. There is an “ask Grok” button under every Tweet. And it’s not the only LLM that can be summoned via Tweet – with similar automations from companies like Perplexity proving there is value in the channel – but it is the only LLM with a native integration into the interface and first dibs on freshly-generated user content and breaking news.
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An acquisition is a special case (for the company being acquired) and the scrutiny is somewhat higher. At least in Delaware. I have no idea what corporate law is like in Texas.
No X shareholder in their right mind will object to getting a $45 billion valuation (including debt) when their latest valuations have the company at <$10 billion.
X is clearly worth a lot more than just it's revenue would indicate.
What is the most influential social media site worth? Perhaps all of the money in the world...