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“Elon Musk says xAI has acquired X in an all-stock transaction valuing xAI at $80B and X at $33B”
Yes, these companies are totally worth this much money.
Elon’s slide decks to investors of his Twitter purchase leaked years ago, and his text messages about the purchase were made public after a lawsuit.
Almost every single thing he promised investors and talked about in those text messages hasn’t been delivered.
His own valuation now shows it has lost a decent chunk of its value. The legally required EU filings on user numbers shows it is down across all EU since he took over.
Onwards and fail upwards.
@GossiTheDog haha what the fuck.
@GossiTheDog smells like Enron in the morning...
@GossiTheDog Wait, so he basically saddled all the private equity investors in his startup with the Twitter debt? lmfaooooo
He's basically doing the same thing that his buddy did in real estate, with each new project financing the debt from the previous one.
@munin @malwaretech @GossiTheDog
I wonder if this will result in legal action, of some kind or other, too?
Surely the inflated valuation needs to meet some scrutiny…?
@malwaretech yep. Also it lost a good chunk of its value since he purchased it, by his own valuation. Failing upwards continues.
@GossiTheDog @malwaretech other way round I think - he's claiming it's worth $45bn now, up $1bn from the purchase price. Even worse a deal for xAI...
@GossiTheDog @malwaretech Presumably any debt owed by X is still owed by X. And it's an all stock acquisition, so no money comes out of XAI. But massive dilution for existing shareholders. Without having seen the details, it feels more like a reverse takeover.
@malwaretech @GossiTheDog On the one hand, his investors should be furious. On the other hand, they were dumb enough to give him a shitload of money, so they definitely won't be.
@foxxtrot @malwaretech @GossiTheDog The AI bubble will soon burst and that xAI stock will be even more worthless than Twitter.
@GossiTheDog
You know the depressing part?
My initial thought was 'oh hey, the SEC will definitely have a case to fucking deal with that'
And then 'oh. Right. Fuck.'
@Oggie @GossiTheDog Hell, they had a solid dozen actionable claims and/or crimes to go him, Tesla, and Twitter with during the Biden administration and they just sat on their hands. It’s long been a toothless agency when it comes to the crimes of the oligarchs.
@GossiTheDog Should have valued it in Dogecoin.
@GossiTheDog making unblinking eye contact and the heads of the FTC, DOJ, and FBI standing at your side while you make your valuation statements
one weird trick that banks hate
@GossiTheDog@cyberplace.social remember when Elon got in the tiiiiiniest amount of luke-warm water with the SEC over his blatant, heavy handed manipulation of his stock prices?
yeaaaah. You know, I never thought the SEC was something I’d miss, but I’m gonna miss the SEC just a little here.
@GossiTheDog I always wondered how investors were going to force him to cover their bad investment, now we know. They made him buy them all out.
@derekheld @GossiTheDog He always finds more bag holders (so far)
@derekheld @GossiTheDog isn't the debt still there, to be honest this is still too opaque to me, guess we'll see the reality at some point. When you say he's bought them out, he's like trump and doesn't have that sort of assets, just lots of debt and companies floating in air like tesla
@peterainbow @derekheld @GossiTheDog he's found new idiots to fund his 'AI' company who've now paid out the old idiots who funded his 'social media's purchase. It's a ponzi. He'll probably pay out these people by making Tesla buy xAI then SpaceX will buy Tesla, by which point he'll have, idk quantum computing investors who find themselves 'owning' cars and rockets and brain chips.
@depereo @derekheld @GossiTheDog I'm guessing his ai company will get the contracts for doing the AI replacement of government work that's being talked about today, so the usual of taxes bailing out failed companies
@GossiTheDog the reality is… he’s a fantastic salesperson.
Maybe he even has ideas and vision.
But execution is hard. And even harder when you take on more than you can actually handle.
And the cost of not doing execution well is: trust and influence. But he also doesn’t care about those either anymore. Because he already got to the top. What’s higher?
Does he even care if he’s known for being good? Probably not.
He already has all the money. He doesn’t have any downside. And the fact is, he’s always prickled and bristled the people in his orbit and in his wake.
Even the women he’s dated.
But ppl like to watch ‘that guy’.
They “cheer them on” even.
Which gives them “beer muscles.”
It’s a viscous cycle. And a tale as old as time. /end 
@GossiTheDog I love how this shit is just the adult version of putting on sock puppets and saying: “Mr. Left hand says Mr. Right hand is worth a looooooot of money!”.
Yeah no shit, I can value myself at a trillion dollars too. Doesn’t make it real.
@GossiTheDog I want what they are smoking
@GossiTheDog so locking in $15B loss ($48B - $33B) now, and deferring recognising the rest of the loss to a different set of stock / debt holders.
I guess that’s a “good” exit in the circumstances, apart from the previous stock / debt holders who would presumably now Like A Word Please (tm) about their missing money and how unfortunate it would be if it is not returned.
Perhaps they will teach Elon how to sleep with the fishes
That fella is smoking magic mushrooms 
@simonzerafa @GossiTheDog I was going to say that that’s not how you take magic mushrooms (the psychoactive chemicals are destroyed at high temperatures, you can’t even cook them without rendering them inert) but then I remembered that we’re talking about Elon Musk. So he probably is.
I was attempting irony but I'll take your views as likely 
@GossiTheDog Isn't this what you usually do in crypto scams?
@ebajni @GossiTheDog yeaahh, this was what Sam Bankman-Fried was doing, wasn't it?
@GossiTheDog I just used my Mastercard to pay my Visa to value my kids painting at $33B
@GossiTheDog true for B=1
@GossiTheDog He'll do what capital investment firms do: Shift all of the debt onto Twitter, harvest whatever value there still is from it, and then let it tank. And then get a tax write-off.
Manipulating stock prices by selling a company you own to another company you own for an exorbitant sum of "stock only" transaction...
How Ferengi.
Simple manipulation of your personal perceived wealth for fun and profit.
And no accounting shall be realized.
@GossiTheDog Tesla wants its fucking gpu’s back.
Hey, this 1994 Plymouth Voyager that Jess bought for $100,000 a couple years ago? Well now JessAI printed 150,000 JessAI bills, and gave Jess 100,000 of them in exchange for the keys to the van. "Jess" and "JessAI" believe that "JessAI" is worth $150,000, and thus "Jess" is worth $100,000. Meanwhile the only thing we actually own is this 1994 Plymouth Voyager.
@JessTheUnstill @GossiTheDog Except in Soviet Russia, where Plymouth Voyager owns you
God I’m sorry I’m sorry I’ll show myself out thank you for coming.
did he buy himself with his own shell corp
@GossiTheDog so, Elon's AI company, that was valued at $45B a couple of months ago bought X for "$33B worth of stock, if one pretends that it is worth $80B"
It seems like Elon's investors would actually value X at $18B
And those guys are still full of #%@
So it IS possible to set a going dumpster fire on fire!
@GossiTheDog He is stripping xAI of whatever value it had to pay for the losses he had in twitter, just like he took the $50 billion payout from Tesla.
@GossiTheDog Funny money for funny money.
@GossiTheDog I have a pair of old socks. They are very valuable. I plan to sell them to myself for $1 million. Anybody offering more?
@GossiTheDog would love to see intl taxation offices respond to this with massive tax bill.
@GossiTheDog those companies are totally worth taking their money from their left pocket to their right pocket.
@GossiTheDog "#valuations" are just batshit crazy made-up amounts.
Like as if someone pays $1.000 to get 1‰ stake in it, the company is valued $1.000.000 by going reverse, when in fact that could merely mean it's a security on a credit / gamble and not much else.
I mean, a house doesn't get valued €100k just because someone was able to get a credit for that amount by puttibg it up as collateral in return.
The #valuation-based #hype doesn't do much except "line goes up" as a company before/after/between deals doesn't gain more assets or clients or orders nor produces more value, products, revenue or even IP.
- In teal life, somethibg is only as valuable as the money (cash) one is willing to put down for it: A luxurious condo or collectible car is only as valuable as the highest bid it can attain in short notice! Same with any business!
A kiosk doesn't get valued much beyond it's assets as it's only "added value" beyond it's merchandise and interior usually gets offset almost completely by it's long-term commitments as in contractual obligations!
@GossiTheDog what I'm reading is that twitter's valuation has gone DOWN since he bought it
Was it ever worth $44bn? Probably not
Is the fact that even the over-inflated value has gone down funny? You bet!
@GossiTheDog so now it’s “officially” a business imperative to scrape our content to train his AI.