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jhm
Well-Known Member
We've been forgetting that one of the ways to value a growth company is to consider acquisition value. Musk is certainly the most likely person to take SolarCity off the market. At what price is he willing to do that?
The market cap is about $2B. Musk may very well believe that the retained value alone puts the value at around $3.5B. So if buys the company out at $2.5B, he adds $1B to his networth.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
So forgive a novice asking here. In reality, if Elon was to try to take SCTY private, how does he go about making an offer to buy all the shares at one particular price? Or to frame my question differently: what if I'm not willing to sell my shares for less than $100?
TheTalkingMule
Distributed Energy Enthusiast
Realizing of course that this conversation is based on a comment of the ubiquitous "some guy".
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
dandurston
Member
TheTalkingMule
Distributed Energy Enthusiast
Elon messing with shorts? He's done it before with both SCTY and TSLA.
Squeezing up past $23....LOL
Squeezing up past $23....LOL
jhm
Well-Known Member
Indeed, it is just a rumor. But just the opportunity to be acquired at a low price should wake up investors.
There are two ultimate ways that shareholders are paid back: dividends and acquisition. So what a company might be acquired for is a valid basis of valuation.
TheTalkingMule
Distributed Energy Enthusiast
jhm
Well-Known Member
If Musk wants to offer shares of SpaceX for SolarCity, I could be persuaded.
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Do you have $20B to back that offer up?
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Do you have $20B to back that offer up?
jhm
Well-Known Member
Not a great answer but "it depends" based on the offer. Usually, they just need a certain percentage of the shares for it to go through (e.g. 51% or 2/3). For the people that didn't tender their shares, what will most likely happen afterwards is they just keep their shares for a while. Then they'll have a secondary round where they buy up the shares for that set price anyway. In the mean time, the shares will get more and more illiquid over time as Elon buys them up. So the end difference, most likely, is that the people that tendered their shares will get paid sooner and the people that didn't will get paid once the buyout is fully complete, months/years later. This is all assuming that Elon gets the threshold 51% (or whatever the agreement is).
TheTalkingMule
Distributed Energy Enthusiast
gigglehertz
Member
TheTalkingMule
Distributed Energy Enthusiast
Seeking FUD has now picked up the "story". LOL
When is human intellect gonna adjust to the Information Age?
When is human intellect gonna adjust to the Information Age?
jhm
Well-Known Member
dandurston
Member
"I'd enjoy the pain of losing my LEAPS if it meant SX shares."
What does happen to LEAPS in the event of a buyout? LEAPs above the buy out price are worthless? And LEAPs below are exercised and the profit is the difference, but the time value is lost?
What does happen to LEAPS in the event of a buyout? LEAPs above the buy out price are worthless? And LEAPs below are exercised and the profit is the difference, but the time value is lost?
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