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Elon Musk's Company Buys Another Musk Company
Musk said his startup xAI is... valuing Twitter at $33 billion.

#3 | Posted by REDIAL at 2025-03-29 02:19 AM
Got a good deal too... $11 Billion less than he paid for it the first time.

Ha-ha, funny. Considering the market value of still money-losing eX-Twitter was most recently estimated at about $8B-$9B.

Seriously, though, this self-dealing (similar to Elon's "sweetheart deal" acquisition of nearly bankrupt SolarCity, partly owned and run by his cousins, by Tesla and renaming it into Tesla Energy) is "valued" by Musk/xAI at $45B ($33B + assumption of eX-Twitter's $12B debt) and is likely to provide lifetime of tax write-offs. It already pushed the EV (enterprise value) of xAI to "self-estimated" $80B MV, against which Musk can seek debt or outside investment, among other bennies.

As the song says:

Hah, that's the way you do it
You play the guitar on the MTV
That ain't workin', that's the way you do it
Money for nothing and your chicks for free
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#10 | Posted by dutch46 at 2025-03-31 12:07 PM
As I read the headline, the image of a snake devouring it's own tail instantly came to mind.

Ouroboros. Interesting visual, but analogy is not incongruous, especially in financial engineering.

As I've said here before, Musk's purchase of "X/Twitter" entity was never planned to be stand-alone, but rather a leveraged stage 1 for merger with another platform, most likely with financial or sales component - trying to emulate the Chinese all-in-one apps/ecosystems like Tencent or Alibaba.

X/Twitter was never going to go public, but xAI most likely will, at high enough valuation (Musk "proposed" the combo of xAI and X is now worth ~$80B) - not bad for a glorified search engine chatbot, trained on X-"wisdom" and disinformation. For comparison, OpenAI just closed a round of investment at valuation of $300B.

Guess what happens when xAI goes public - all personal debt Elon assumed with the purchase of Twitter will become debt of public company shareholders, allowing Musk to participate in public company riches while "sharing" the huge debt with people buying the common stock.

This is EXACTLY, only on much larger scale, the scam Donald Trump pulled when he used his [father's] name and reputation for ~$1B in personal loans for 2 casinos that he was certainly going to default on, then folded one into DJT / Trump Hotels and Casino Resorts public company, then did the same with another one... and poof, his personal debt disappeared and became "property" of the unsuspecting suckers aka DJT shareholders.