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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

#821

Post by windexh8er »

fastball wrote: post #614
timewizard wrote: post #584

Earlier quoted context omitted.

The government spends 1 out every 5 dollars of GDP. It probably does need a better mechanism for managing costs and outlays. Having one of the "richest men in the world" be in charge of it is ridiculous. That's Trump for you. Populism up front, oligarchy in the back.

Not sure that tracks. Oligarchy is generally how people who don't deserve wealth can get it. As pointed out by you, that doesn't exactly apply to the world's (already) richest man. And who exactly would you look for to help the federal government build "a better mechanism for managing costs and outlays", if not someone who has built multiple successful businesses (managing costs and outlays at impressive scale) in ve…

The assertion that Musk built Tesla, SpaceX, and SolarCity is peak absurdity.

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

#822

Post by abrichr »

cma wrote: post #777
twothreeone wrote: post #615

Earlier quoted context omitted.

There's two issues with that theory: (a) Somebody in another thread mentioned that margin for those loans would trigger at around $120, so assuming that's true TSLA has another 50% to lose before it would happen. (b) Even if that was the case and TSLA lost those 50%, that would mean he'd have to cover the loans with cash. He cannot use xAI shares for that because contrary to TSLA it is not a publicly traded company.…

Twitter started with $13 billion in debt and now has $12 billion, so was only able to make $1 billion in profit in about two and a half years. Twitter was making around $500 billion a quarter before the Apple ad targeting changes that Meta was able to recover from back to more than their profitability before the changes, so if Twitter only got back to ~$100 billion a quarter they failed pretty hard in comparison to M…

> Twitter was making around $500 billion a quarter before the Apple ad targeting changes

From https://archive.is/rfBcg:

> Advertising revenue was $1.14 billion during the quarter ended Sept. 30 [2021], in line with consensus estimates.

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

#823

Post by j4coh »

AtlasBarfed wrote: post #543
whats_a_quasar wrote: post #272

Earlier quoted context omitted.

As best I can tell the deal includes paying off $12 billion of Twitter debt. So that's real money, though that seems like it's basically all of the cash that xAI has raised, so if that's the case that's pretty wild. Edit: I misread, Musk said it's an all-stock deal, so you're right, it's all funny money. I think that means the combined entity is taking on that debt. It's still great for Twitter and bad for xAI invest…

I smell margin call desperation. Musk got visibly worried with tanking Tesla stock and pulled out some crazy stops to keep Tesla afloat. Remember, these megabillionaires are due to stock valuations, and live rich lifestyles on the basis of lending against the value of stock. If that value drops and a margin call forces actual selling, then Musk loses shares in Tesla. I have to think this stunt is related to Musk need…

If it’s an all stock acquisition did it generate any liquidity?

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

#824

Post by srid »

DeathArrow wrote: post #715
sph wrote: post #713

Earlier quoted context omitted.

Because even if Tesla/X are tending towards zero, the market will stay irrational longer than you can afford it. The horde of Musk idiot fans grows every day.

So, if someone likes Musk, he must be an idiot, while if he hates him, we can be sure that someone is not an idiot. On what do you base your assertions?

Just FYI, you can't expect intelligent conversations on HN about anything related to Elon Musk. A small vocal group really hate him, and we know that passion (especially if politically motivated) retards intelligence.

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

#825

Post by [deleted] »

rayiner wrote: post #182
bhouston wrote: post #29

He has done this move before with Tesla buying Solar City. When you do a deal with yourself you can assign any value you want to assets, it isn’t a competitive process. In the previous case Solar City was dying but its acquisition by Tesla was pitched as a great synergy. https://www.businessinsider.com/solarcity-tesla-energy-belea... There were a few lawsuits from Tesla shareholders about the acquisition regarding se…

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...

[deleted]

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

#826

Post by TuringNYC »

torginus wrote: post #818

How the hell does this work?? I have five dollars in a box, and I buy a different box, also known to have five dollars in it, for the $5 in the first one. Now, according to this logic, I have a portfolio worth $10, since I still have the original box, worth $5 and the new one, also worth $5. If I tried this at a gas station, I would be arrested if I got caught.

Many numbers in this sphere can seem arbitrary:

https://www.nytimes.com/2022/04/14/business/elon-musk-420-tw...

https://www.businessinsider.com/elon-musks-humor-jokes-over-...

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

#827

Post by FormerBandmate »

kelnos wrote: post #601
zahlman wrote: post #449

Earlier quoted context omitted.

Isn't Twitter's stock price higher than it was at acquisition?

As the sibling pointed out, private companies don't have stock prices. But I've read estimates that Twitter is worth less $10B now, so less than a quarter what Musk paid for it.

Rhis raises it back to the original level (although entirely based off the absurdly overinflated value of Grok at $80 billion. VCs…)

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

#828

Post by m3kw9 »

TZubiri wrote: post #435
HarHarVeryFunny wrote: post #417

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.

What is iAnal? Does it mean what I think it means?

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

#830

Post by j16sdiz »

redox99 wrote: post #205
kansface wrote: post #171

Earlier quoted context omitted.

Musk leveraged TSLA stock to buy Twitter.

Elon sold 19B in stock, took a loan for 6.25B, and the rest was other investors. The 6.25B loan, assuming he still has it, is really not an issue considering his net worth. He can add more collateral or sell a bit. In fact TSLA stock is higher now than when he bought Twitter.

"Net Worth" can be misleading.

Wikipedia say Musk has repeatedly described himself as "cash poor" -- most of his worth are not in cash.

How much of his net worth are in $TSLA?

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