Trump / Musk (other than DOGE)

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www.reuters.com

Musk's social media firm X bought by his AI company, valued at $33 billion

Elon Musk's xAI has acquired X in a deal that values the social media platform at $33 billion and allows the value of his artificial intelligence firm to be shared with his co-investors in the company formerly known as Twitter.
www.reuters.com www.reuters.com
March 28 (Reuters) - Elon Musk said on Friday that his xAI has acquired X, the social media app formerly known as Twitter, in an all-stock transaction for $45 billion, including $12 billion debt.
"xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent," Musk said in a post on X, adding that the combined company would be valued at $80 billion.


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He founded an ai company, raised money for it, then used that company to buy him out of owning X directly
 
altmin said:
www.reuters.com

Musk's social media firm X bought by his AI company, valued at $33 billion

Elon Musk's xAI has acquired X in a deal that values the social media platform at $33 billion and allows the value of his artificial intelligence firm to be shared with his co-investors in the company formerly known as Twitter.
www.reuters.com www.reuters.com
March 28 (Reuters) - Elon Musk said on Friday that his xAI has acquired X, the social media app formerly known as Twitter, in an all-stock transaction for $45 billion, including $12 billion debt.
"xAI and X's futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent," Musk said in a post on X, adding that the combined company would be valued at $80 billion.


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He founded an ai company, raised money for it, then used that company to buy him out of owning X directly
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It doesn't matter. It's all worth the same. LOL at the $45 B valuation. It's an all-stock deal between two subsidiaries. He could sell it for $200B and it wouldn't matter (as far as valuation goes).
 
Serious question, because I am way out of my league here - How does that work if Twitter wasn’t a public stock?
 
Absorbs a $12B loss to make X into an ATM machine. Stabbed investors in the back.

Gee, why am I not shocked?

The bank robberies will continue.

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When the Columbia protests were going on and the corrupt Mayor Adams did not arrest foreign Hamas, non-student elements - I had a problem.

Now Trump and Rubio go after the weaker students who were stooges who repeated Hamas propaganda. Including folks with Green Cards, Not criminals. Not illegal aliens.

Because once the Trump 2.0 Reich gets away with indiscriminate deportation of *alleged* criminals and *pet eaters* without due process to the *wrong country* (aka El Salvador, where none of the snatched immigrants are from) or a secret prison in Louisiana (frankly a third world location)...

...then escalating to deporting *without due cause* or *an arrest* where men in black take unsuspecting students to secret locations. A terrorist Gestapo.


Trump 2.0 is lawless where Congress, the FBI, DAs, Federal judges, capitulating law firms...none of them matter. It's the *Summer of Trump.*

We spent mountains of treasure and lakes of blood fighting Nazis and Communist in the 20th Century. Now, we're one of them...look at Trumps friends and our new enemies - former allies. Just ask them. It's repulsive.
 
sringwal said:
Serious question, because I am way out of my league here - How does that work if Twitter wasn’t a public stock?
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How does what work? Mergers? The law of mergers is state corporation law. Federal law sets forth rules that must be followed for companies with publicly traded securities -- but they are only rules pertaining to the stock and the stock trading. The actual authority for the merger is state corporation law.

Small mergers are common. I mean, really common. And so are intercorporate mergers (i.e. companies with common owners merging).

Is that what you're asking? Does this answer the question?
 
Duke Mu said:
Cheating. Took a $12B paper loss. xAI now becomes an ATM machine.
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I thought he valued X at $45B, not $33B.

Regardless, $33B is a price way over Twitter's current valuation, so there's no cheating involved. The transaction is conflicted, and Musk almost certainly did not follow any of the procedures usually required to prevent close scrutiny of the deal (he didn't in his pay package or in other mergers), so entire fairness review would apply. And entire fairness review can make it quite difficult for the company to prevail, but a price that is at least twice a current valuation will satisfy the standard.

There might be "cheating" in the sense that banks feel compelled to participate in the financing to avoid being on Musk's bad side, given his position in the government. But banks also felt compelled to participate in the twitter buyout just because Musk is a big fish.
 
superrific said:
I thought he valued X at $45B, not $33B.

Regardless, $33B is a price way over Twitter's current valuation, so there's no cheating involved. The transaction is conflicted, and Musk almost certainly did not follow any of the procedures usually required to prevent close scrutiny of the deal (he didn't in his pay package or in other mergers), so entire fairness review would apply. And entire fairness review can make it quite difficult for the company to prevail, but a price that is at least twice a current valuation will satisfy the standard.

There might be "cheating" in the sense that banks feel compelled to participate in the financing to avoid being on Musk's bad side, given his position in the government. But banks also felt compelled to participate in the twitter buyout just because Musk is a big fish.
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Musk bought twitter for $45B, but claimed $33B when he bought his own company with xAI. That's why it's a paper and not real loss. Reorganization like this is also a common ploy against legal action. And he paid himself during the exchange aka skimming off the top.

Buy: $45B
Sell: $33B (to himself)

 
Duke Mu said:
Musk bought twitter for $45B, but claimed $33B when he bought his own company with xAI. That's why it's a paper and not real loss. Reorganization like this is also a common ploy against legal action. And he paid himself during the exchange aka skimming off the top.

Buy: $45B
Sell: $33B (to himself)
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Not necessarily. It depends on the financing and the merger agreement. Without seeing the merger agreement, it's impossible to evaluate.

An all-stock deal will not prevent any legal action. The surviving company will inherit all assets and all liabilities of the original companies, including contingent liabilities.
 
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