How the AI Backlash Could Make Elon Musk Even Richer
\n\nOn Tuesday, Elon Musk disclosed that SpaceX and Tesla have formed special committees to consider a merger. Combining the two would create a company worth something like $3.5 trillion, bringing together rockets, satellites, electric cars, robots, batteries, and AI data centers. It would be the biggest corporate merger in history.
\n\nThere’s a certain logic to combining the companies. There is probably a lot of overlap between the investors in SpaceX and Tesla, many of whom are essentially betting on Musk’s ability to turn improbable-sounding ideas into profitable businesses. This also suggests that a traditional takeover premium might not make much sense. There’s no outside buyer paying to take control. The shareholders would simply be exchanging their stakes in two Musk companies for ownership of one very big Musk company. The exchange ratio will matter, of course, especially for investors who don’t own equal proportions of both. You’ll have to pay investment bankers and lawyers to issue fairness opinions about the transaction, but there’s zero chance they’ll come back saying it isn’t fair.
\n\nWhat makes the merger interesting is that Musk’s collection of seemingly unrelated businesses is increasingly becoming one enormous…
Original source: https://breitbart.com/
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