General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDavidDvorkin
(19,473 posts)Grabbing Musk's dough and getting out must have looked like a godsend.
edhopper
(33,556 posts)which was still not making a profit and maybe never would. Why wouldn't they take the deal?
ProfessorGAC
(64,988 posts)Not just twice. He paid $44 billion. They have $14 billion in assets. He also assumed $21 billion in debt.
Then borrowed $11 billion to fund it.
So, it's now $14 billion in assets, $32 billion in debt against $5 billion in revenues.
He obviously didn't figure out that when he took over Tesla the infrastucture was in place for financial success. That is not clear as it comes to Twitter, and there's no evidence at either Tesla or SpaceX that his management abilities were instrumental to their successes.
It's very possible that he bit off more than he can chew.
Effete Snob
(8,387 posts)Lol
ProfessorGAC
(64,988 posts)Thanks for the chuckle. Have had the flu for 4+ days.
RockRaven
(14,958 posts)$54.20/share was so inflated that the various parties with fiduciary duties were obliged to go along with the sale.
grumpyduck
(6,231 posts)Effete Snob
(8,387 posts)It was such a dumb bargain on his part that they sued him to go through with it. He knew he had no case and the consequences would be worse, so he changed course and followed through.
Effete Snob
(8,387 posts)Your business loses money consistently.
Ill give you billions for it.
Do we have a deal?
grumpyduck
(6,231 posts)I do have a bridge in central Nevada that's not doing well at the toll booth...
C_U_L8R
(44,997 posts)And the greater fool was pounding on their door.
Clash City Rocker
(3,396 posts)republianmushroom
(13,569 posts)Polybius
(15,373 posts)Any CEO/Board of Directors has little choice when someone offers you 3x the amount of money that the company is worth. That's pretty much what Musk did. They would be bad business leaders. If they didn't sell.
Imagine buying a new bike for $1,000, and you still owed $200. If someone offers you $3,000 and pays the dept you owe, it would be foolish not to sell. Make that profit.
keithbvadu2
(36,747 posts)I hope they have already been paid.
I wonder if he has gotten all the money from lenders/investors.
Surely they have some clauses about prudent fiscal management.