- cross-posted to:
- technology@lemmy.world
- cross-posted to:
- technology@lemmy.world
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This might have the opposite effect he wants, xAI investors no longer have a clean AI investment and are now linked to a failing social media platform.
xAI is already losing bigtime vs other AI companies, this just makes it even less attractive.
Musk’s slight of hand shell game to keep from losing his shirt if his Tesla stock keeps dropping and his X financiers come looking for money.
Well, not really. Twitter was his own private property that he bought with borrowed money secured against his Tesla shares. xAI on the other hand is financed by investors whose money he used to bail himself out at a price he made up himself since Twitter is no longer publicly traded. So this is, in my opinion, misuse of investor funds; the picture would be true if xAI used how own money to do this, but no.
On one hand,I think this is serious fraud. On the other, my understanding for anyone investing into his companies is very limited, there are so many red flags on so many levels.
Is this so the loans secured with X stock can’t be called in, forcing Elon to sell the collateral to pay back the loan?
Sure seems like a bullshit business move to retain control of Tesla.
So hell get taxed for exchange of speculative assets right?.. Right?!
No because it’s a loss, so he’ll actually get 10bln in tax credit
The combination values xAI at $80 billion and X at $33 billion ($45B less $12B debt)
Lol, he actually think the value of Shitter is still $45B, as when he bought it. That’s cute.
If I recall, fidelity wrote off most of its investment in twitter less than a year after the acquisition: https://www.forbes.com/sites/tylerroush/2024/09/30/elon-musks-x-is-now-worth-around-a-fifth-of-the-44-billion-he-paid-for-it-fidelity-says/
Wrote down not off.
https://www.theguardian.com/technology/2024/jan/02/x-twitter-stock-falls-elon-musk
Debt is written off when deemed unrecoverable.
Assets can be written down when the value is lower than expected. Often this is due to more rapid depreciation of capital assets due to damage or impairments to goodwill (brand failure).
But none of that matters because private equity valuations are all bullshit and mean nothing anyways.
https://www.wallstreetoasis.com/forum/private-equity/private-equity-is-a-joke
For reference, he bought it for $44B.
https://wikipedia.org/wiki/Acquisition_of_Twitter_by_Elon_Musk
YAAASSSS!! I love to think of him losing money without money his influence plummets
It’s almost better than losing money. He put up a certain amount of Tesla stock as collateral for the loan (essentially) to buy Twitter.
So if Tesla’s stock tanks, those creditors will be able to claw more stock away from him. If it tanks enough, he’s in hostile takeover territory.
We enter hostile takeover territory around $115
I love it when you talk dirty 🤪
Are the authorities aware? It’s very illegal to sell exctacy in the US.
His juvenile enthusiasm for the letter X is so ten-year-old boy with sunglasses.
“X” is also 88 in ASCII. 88 is a Nazi reference to “heil hitler”. Big surprise.
