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Elon Musk's Tesla Plans To Acquire Elon Musk's SolarCity For $2.7B In Stock (techcrunch.com)

Posted by BeauHD on from the live-off-the-grid dept.

An anonymous reader writes from a report via TechCrunch: Today, Elon Musk's electric car and battery company Tesla has announced its offer to buy solar panel installation company SolarCity. Now is a better time than ever to acquire SolarCity, as it recently had its value downgraded. If Tesla does acquire SolarCity, the companies could allow you to outfit your home with solar panels that power a giant battery for your various appliances, such as an electric vehicle. The deal, which has yet to be approved by SolarCity and its board, involves SolarCity's stock being exchanged for Tesla stock. TechCrunch reports that "the deal would pay a premium of 21% to 30% on top of SolarCity's value of $2.14 billion, so Tesla would be buying SolarCity for between $2.59 billion and $2.78 billion worth of its stock." The Tesla team writes, "It's now time to complete the picture. Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that's available: the sun." Elon Musk has also been in the news today through OpenAI, the artificial-intelligence non-profit backed by Elon Musk, Amazon Web Services and others. OpenAI announced it is working on creating a physical robot that performs household chores.

5 of 55 comments (clear)

  1. I need to see the negotiations by Anonymous Coward · · Score: 4, Funny

    Elon Musk: So do we have a deal?

    [Elon gets up from his seat at one end of a massive conference table where he is flanked by lawyers, and walks around to the other end, where he sits down, flanked by other lawyers.]

    Elon Musk: We have an agreement.

    [Elon Musk gets up, crosses to the middle of the room, and shakes his own hand to the cheers of his fellows.]

  2. New Name... by Thelasko · · Score: 4, Funny

    Musk Industries.

    --
    One of our competitors trademarked the term "hypothesis". From now on, we will call them "boneheaded ideas".
  3. This is common in Silicon Valley by comrade1 · · Score: 5, Interesting

    It's common for a successful company to buy out investors in an unsuccessful company as a way to move value out of the sham higher value company directly into the lower value company, because, of course, they'd rhe same investors. It's a way to get a pay off early without selling off your tesla stock. Same thing happened with the YouTube buyout by Google. The VC firm that funded both companies wanted a payoff even though at the time the deal made no sense.

    1. Re:This is common in Silicon Valley by kwerle · · Score: 4, Funny

      Yeah - it's a shame that deal didn't work out for any of the involved parties.

  4. Re:So where does mr. Elon Musk figure in all this? by binarylarry · · Score: 4, Funny

    From the tone of the article, I think Elon Musk might be involved behind the scenes, pulling the strings.

    Only time with tell.

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    Mod me down, my New Earth Global Warmingist friends!