In the Land of Trillion Dollar Goliaths | Elon Musk could combine all his companies into a super company simply called ‘X’
Elon Musk could reportedly be laying the groundwork to combine Tesla, SpaceX, Neuralink, The Boring Company and Twitter into “a new super company,” simply called ‘X’. Musk registered three new companies on Tuesday in in the tax friendly state of Delaware under three Holding companies with variations of the name ‘X Holdings Inc.’ These three new companies could help Musk maneuver to acquire Twitter.
Each of the holding companies has a specific purpose. The first holding company X Holdings I Inc., lists Musk as president, treasurer and secretary. According to a report by Bloomberg, this would also be the parent company of Twitter should Musk’s bid succeed. X Holdings II Inc. on the other hand, would merge with Twitter as part of the acquisition, whereas X Holding III LLC would partly fund the transaction, according to the report. Does any of this sound familiar?
Back in December of 2020, Twitter user @heydave7, Tweeted a proposal to Musk that Elon should form a holding company called X. Lee went on to also propose a mission statement that “X’s mission is to ensure human survival and progress,” and that X would become to parent company to Tesla, SpaceX, Neuralink and the Boring Company, with musk replying “Good idea.” Is Musk actually considering a super company? Just last week Musk said “As a public company, you’re just constantly sued,” Musk said in a TED interview. “It’s not that easy to sort of combine these things.”
Managing Partner and Tesla investor Gary Black tweeted “This is fine if done so @elonmusk can combine his equity stakes to finance a personal bid for $TWTR. This is a terrible idea if $TSLA brought under its corp umbrella SpaceX and Boring Co. Investors hate conglomerates and would reduce $TSLA EPS and P/E if this came to be true.”
So, what happens next? Musk seems to be pushing to get the deal in place ahead of Twitter’s May 25th shareholder meeting which could add pressure to Twitter’s board to sell. If Twitter did accept Musk’s offer, shareholders would stand to benefit massively. What do you think about Musk potentially combining Tesla, SpaceX, Neuralink, The Boring Campany and Twitter under the parent company called X? Let us know in the comments below.