ATLAS News · Deals
Yahoo Finance and BigGo Finance report SpaceX's share drop could shift deal math for a Tesla combination; Nacionale says no terms are agreed.
Yahoo Finance and BigGo Finance report that a fall in SpaceX's share price is complicating a potential merger between SpaceX and Tesla. According to Yahoo Finance, a lower SpaceX price could leave Tesla investors owning a much larger share of the combined company.
Both outlets say SpaceX shares have fallen about 13% since Oct. 21, the day Elon Musk disclosed that the boards of SpaceX and Tesla had formed special committees to explore a deal. BigGo Finance describes the share-swap math as turning against Musk.
Nacionale stresses that no merger has been agreed. It reports that both boards are only studying a possible deal and that no terms have been set.
In a share-swap merger, the relative value of each company's stock helps determine how much of the combined company each group of shareholders ends up owning.
The reports suggest that movements in SpaceX's valuation could influence how any potential combination with Tesla is structured, although nothing has been agreed.
Price changes are shown for the trading day of the story and are a coincidence in time, not proof that the news caused them. Figures are ATLAS data from our database.
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