Off-topic for aiqbench
This story was gathered from a source we follow but falls outside AI and quantum coverage, so there is no aiqbench take for it.
Elon Musk’s SpaceX-Tesla merger math doesn’t add up
Everything you need to know before you reach the office this morning.
There’s a problem with the proposed merger of Elon Musk’s SpaceX and Tesla, Fortune’s Shawn Tully writes. The addition to SpaceX’s GAAP profits per share would be minuscule. SpaceX’s bottom line is growing, and Tesla’s is dropping. And thus the deal would prove extremely dilutive for the Starlink provider. Right now, Tesla’s market cap is $1.52 trillion; tack on a 30% acquisition premium and SpaceX would be out $1.98 trillion. SpaceX’s valuation stands at $2.14 trillion. We’re looking at almost a merger of equals. SpaceX would need to issue the equivalent of 92% of its outstanding shares to capture Tesla. Hence, SpaceX’s share count would zoom from 13.1 billion to 25 billion shares. SpaceX would be awarding nearly half of its future earnings to Tesla’s selling shareholders. And what’s it getting in return? Tesla booked just $3.28…
Excerpt shown under the publisher's RSS terms · 137 words · full text and figures are on the publisher's site