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xAI has acquired X, xAI now valued at $80B

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Re: xAI has acquired X, xAI now valued at $80B

#741

Post by Ekaros »

ra7 wrote: post #352
paxys wrote: post #83

Earlier quoted context omitted.

Elon bought Twitter for $44B, with a combination of his own money, money raised from investors, and $12B worth of debt secured by his Tesla shares. Since that time Twitter's valuation continued to drop, and by late 2024 several investors (like Fidelity) had marked the company's overall value down to as little as $9B. Now with the recent stock market turmoil and Tesla's massive share price drop, his Twitter loan is in…

What was in it for existing xAI investors to agree to this? Haven’t they lost value here?

Probably enough convincing math that trading 42% of stock for whole of Twitter is still good valuation play for future funding and maybe flipping it to someone else... Was xAI worth 57B at time of the sale?

Re: xAI has acquired X, xAI now valued at $80B

#742

Post by testing22321 »

telotortium wrote: post #373
ergocoder wrote: post #230

Earlier quoted context omitted.

Then, they would vote democrats. This might actually help democrats win presidency.

That's why Canada would be the 51st state . Only 2 senators for all of Canada, so not much increase in Democratic representation. Representatives would of course lean Democratic, but if Trump engineers a collapse in Canada's economy, some voters may be willing to vote Republican if they're promised a bailout, given the fait accompli of annexation. Plus, if the NDP sticks around, that's fewer Democratic representative…

[flagged]

Re: xAI has acquired X, xAI now valued at $80B

#743

Post by nly »

rayiner wrote: post #38
toomuchtodo wrote: post #16

Earlier quoted context omitted.

It bails out Elon and means his Tesla shares (borrowed against to purchase Twitter) won’t be liquidated as Tesla’s share price continues to decline, using xAI investor funds. He uses hype and sentiment (inflating valuations) in the capital markets to always stay slightly ahead of consequences.

Tesla shares are higher now than they were when he closed on Twitter in October 2022.

The company is imploding. BYD is eating their lunch on most real metrics except their absurd valuation.

Re: xAI has acquired X, xAI now valued at $80B

#744

Post by cedws »

chairmansteve wrote: post #627
rayiner wrote: post #182

Earlier quoted context omitted.

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...

How's Solar City doing now? Not sure the court was capable of that judgement.

And what happened to Tesla solar roofs? Haven’t heard about those since like 2020. Who actually has one? And Tesla trucks? And full self-driving? And robotaxis? And the private venture around the moon?

It’s like everyone just forgets Musk’s announcements that never get delivered on.

Re: xAI has acquired X, xAI now valued at $80B

#747

Post by permo-w »

achierius wrote: post #672
permo-w wrote: post #429

Earlier quoted context omitted.

changes nothing

Yeah it does, presumably he has that much money, which invalidates your original point. Hope that helps explain the situation!

it 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

Re: xAI has acquired X, xAI now valued at $80B

#748

Post by permo-w »

kristjansson wrote: post #645
permo-w wrote: post #332

Earlier quoted context omitted.

right 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?

"I merged my checking account ($X) with my savings account ($Y) in an all cash deal valuing the combined entity at $X+Y"

precisely

Re: xAI has acquired X, xAI now valued at $80B

#749

Post by baobabKoodaa »

paxys wrote: post #55

The only thing worse than investors assigning random made up valuations to their portfolio companies is owners themselves assigning random made up valuations to their companies.

not sure what is the distinction you're trying to make between owners and investors

Re: xAI has acquired X, xAI now valued at $80B

#750

Post by pavlov »

permo-w wrote: post #747
achierius wrote: post #672

Earlier quoted context omitted.

Yeah it does, presumably he has that much money, which invalidates your original point. Hope that helps explain the situation!

it 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 gu…

He'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.")

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