shares in this article
Twitter agrees to Musk’s offer
“X Holdings” launched
Mega Musk corporation in the making?
Twitter accepts Musk’s takeover bid
Even if entrepreneur Elon Musk is best known for his leadership position at electric car manufacturer Tesla, the richest person in the world does not rest on his laurels at the head of a single company. In addition to the aerospace company SpaceX and the neurotechnology group Neuralink, the jack-of-all-trades is also involved with the tunnel builder The Boring Company. Most recently, Musk also made a name for himself with the takeover of the short message service Twitter. Shortly after the Tesla boss became the largest shareholder in the social media group with a 9.2 percent share of all Twitter shares, he announced that he wanted to take over the service completely. Although the Twitter leadership initially rejected the acquisition plans, the board of directors surprisingly agreed to Musk’s offer. Now only the shareholders have to agree to the purchase and cede enough shares in Musk.
According to Musk, billions in financing secured
Musk wants to reward every Twitter share with $54.20. The deal would be worth around $43 billion. In order to raise at least this amount, Musk assured the management of the group loans of over 25.5 billion US dollars and also wanted to sell shares worth a total of around 21 billion US dollars, as the German Press Agency reports. While the entrepreneur can claim to be the richest person in the world, his last $252 billion fortune (as of April 29, 2022) consists mostly of Tesla and SpaceX shares, which compared to the papers of the e-car manufacturer are not traded on the stock exchange.
“X Holdings” to process payment for Twitter takeover
When processing the takeover amount, the entrepreneur could benefit from the founding of three new companies, which became public through a form available to the US Securities and Exchange Commission (SEC). What is striking is that all three new companies have the letter X in their names. For example, Musk is listed in the April 20 filings as Chairman, Treasurer and Secretary of X Holdings I and X Holdings II, and as a member of X Holdings III. The three new companies are grouped together in the application as “Project X” and were apparently founded to formally complete the Twitter acquisition and to process the necessary loans.
“X” designation runs through Musk projects
It shouldn’t be a coincidence that the new companies are called X Holdings. The letter X can be found in many of Musk’s projects: Not only does Musk’s space rocket builder go by the name SpaceX, Tesla also has a luxury car in its range with the Model X. In addition, the entrepreneur owns the domain X.com. The online payment company of the same name was co-founded by Musk in 1999 and merged with the then PayPal parent Confinity in 2000. Only after the takeover was the name changed to PayPal. Musk then bought the domain back from PayPal in 2017. “Thanks PayPal for letting me buy back X.com! No plans right now but it has great sentimental value for me,” Musk wrote on Twitter at the time.
Thanks PayPal for allowing me to buy back https://t.co/bOUOejO16Y! No plans right now, but it has great sentimental value to me.
– Elon Musk (@elonmusk) July 11, 2017
Tesla & Co. soon under X umbrella company?
But could “Project X” mean that a holding company for the Musk companies would be founded? As early as 2012, the Tesla boss publicly stated that he was considering founding a holding company for Tesla and SpaceX, as the news agency “Reuters” writes. “I’m starting to think about whether it would make sense to create a parent company that would own the stock,” Musk said in a Q&A session at auto portal Jalopnik.com. “I’m not sure if that’s feasible or sensible, but I’m thinking about it.”
In 2020, YouTuber Dave Lee, who claims to have invested in Tesla shares since 2012, suggested to Musk via Twitter that he start a holding company called “X”. This should ensure “the survival and progress of mankind” and include Tesla, SpaceX, Neuralink and The Boring Company. “Good idea,” Musk wrote.
Good idea
– Elon Musk (@elonmusk) December 23, 2020
Different investor base
At the beginning of April, Musk explained in an interview with “TED” Managing Director Chris Anderson that a merger of all of the entrepreneur’s groups could pose some challenges. “I mean, it’s difficult because Tesla is a public company and the investor base is very different from Tesla and SpaceX and certainly from Boring Company and Neuralink,” said the CEO. “Boring Company and Neuralink are tiny companies.”
SpaceX IPO associated with high costs
The Tesla CEO also commented on a possible IPO of SpaceX, which many Musk fans have been looking forward to for years. “Life on multiple planets is outside of Wall Street analysts’ normal time horizon,” Musk quipped. “I would like to give the public the opportunity to buy shares in SpaceX, but I think the costs associated with being a public company are high. I mean, as a public company you get sued all the time. It costs a lot … time and effort to deal with these things.” In February, SpaceX shares were split ten to one, raising hopes of a public listing soon.
So it remains to be seen how the Musk companies will continue. Possible references to a parent company for Tesla, SpaceX, Neuralink, The Boring Company – and possibly Twitter – could be published as part of the progressive takeover of the short message service.
Editorial office finanzen.net
Leverage must be between 2 and 20
No data
More news about Tesla
Image Credits: Jason Merritt/Getty Images for Tesla, Jason Merritt/Getty Images for Tesla/Getty Images