Elon Musk has sold social media site X to his own xAI artificial intelligence company in a $33 billion all-stock deal, the billionaire announced on Friday.
I am more surprised xAI investors approved. Especially for such a high price.
Twitter actually imo had (and still has) quite a bit of value, but that is only to further Elons ideological goals. As a business it is on a downward trend and was never a cash cow to begin with. Comparatively little room for speculation. It’s a stagnating or declining business and doesn’t generate large profits if any.
xAI on the other hand is pretty much in the same spot as most other ai companies. It has yet to prove to be a highly profitable business, but there is plenty of room for speculation. So as long as the bubble doesn’t burst, it has a high valuation.
Which is all that would matter for any Twitter investor that wants to unload his shares. Although I doubt it would be via ipo, but rather in private funding rounds.
Xitter investors got scammed and there was no way that xitter would be able to pay 1 billion per year in interest. Better having someone else holding the bag
I’m surprised the Twitter investors would approve this. Their worthless Twitter stock is now worthless xAI stock. How does that help them?
I guess they’ll try to take xAI public with a massively overpriced IPO.
I am more surprised xAI investors approved. Especially for such a high price.
Twitter actually imo had (and still has) quite a bit of value, but that is only to further Elons ideological goals. As a business it is on a downward trend and was never a cash cow to begin with. Comparatively little room for speculation. It’s a stagnating or declining business and doesn’t generate large profits if any.
xAI on the other hand is pretty much in the same spot as most other ai companies. It has yet to prove to be a highly profitable business, but there is plenty of room for speculation. So as long as the bubble doesn’t burst, it has a high valuation.
Which is all that would matter for any Twitter investor that wants to unload his shares. Although I doubt it would be via ipo, but rather in private funding rounds.
The whole point of buying Twitter was to take it private. IPO for xAI would hilariously undo that.
The point was to win an election.
Xitter investors got scammed and there was no way that xitter would be able to pay 1 billion per year in interest. Better having someone else holding the bag