Too early to write closing arguments on this. A vengeful future administration might make us realize that the entire transaction was a huge mistake.
replyTrue. There is a “so far” on that.
replyI don't know where a vengeful future administration would come from. We only have Democrats or Republicans to choose from, and Democrats have made turning the other cheek their entire purpose and political mission. They slow-rolled the investigation of Trump so long he got elected again in the meantime. The idea that any major Democrat would go after a billionaire and not just any billionaire but the biggest billionaire of them all? Absurd thought.
reply> Twitters acquisition is among the worst deals in human history.
replyThat he won't have to pay for. Shareholders will, as part of the SpaceX IPO.
If shareholders have to pay the debt, then the shares will be less valuable, and Musk (whose wealth is measured in shares) will be less wealthy, no?
replyBy a tad. SpaceX's worth is an order of magnitude more than Twitter's debt. I doubt any serious person considering buying shares in SpaceX will spend even a moment worrying about Twitter.
replyThey probably should. I've seen people concerned a subsidiary's GDPR fine would be calculated on the basis of the parent company's global revenue, and in Musk's case something similar has happened in Brazil where Starlink's assets were frozen and justified in part because of how Musk fails to properly delineate between his businesses.
replyThe EU also lacks incentivizes to not harm SpaceX. The US government as a whole, and DoD in particular wants SpaceX around to deliver cheap mass to orbit.
replyEurope on the other hand would love any judgements which give their rockets a chance to catchup. So they won’t temper an investigation or fines accordingly.
Musk only owns 42% of SpaceX; he only takes 42% of the loss as if he continued to own Twitter outright.
replyWell Twitter has other investors, too.
replyBut he'll also likely be shaving equity here and there along the way to hedge this bet.