Quote:
Originally Posted by Slava
To be honest if I’m Tesla I’m spending my shares to buy a car company (if it’s possible), and I’m not convinced that’s a dumb idea. The shares are wildly overvalued, and if you can spend those as a currency to buy a legitimate business, that’s brilliant. Someone is going to do something questionable here though, and it’s fascinating to sit and watch it play out.
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I dont think thats dumb at all, it's objectively a good idea.
If Tesla (or any of these firms) convert shares at market prices to assets they come out way ahead, because the shares are trading well above any reasonable assessment of their fair value.
I meant from AOLs perspective - they traded over valued shares for Time Warner, which had tons of durable assets (CNN, HBO, a movie studio, etc). Steve Case is still a billionaire because of that deal.