Comment on Why is Tesla market cap so high ?
spankmonkey@lemmy.world 2 weeks agoThe expectation that someone else will purchase it at a price it is being offered at.
Which is a hilarious extrapolation since all shares being offered at the same time (total market cap) would cause the ‘value’ to dive bomb.
BombOmOm@lemmy.world 2 weeks ago
Unless someone purchases the company. Then it is common to buy out all the shares at (around) the current market price.
spankmonkey@lemmy.world 2 weeks ago
They don’t buy out all the shares, just a controlling interest or whatever they call it.
slazer2au@lemmy.world 2 weeks ago
It depends but sometimes they do. Like if a vc takes a public company private it generally takes all shares or if another public company takes over they will exchange the shares for their own. A recent example Broadcom purchased VMware
BombOmOm@lemmy.world 2 weeks ago
If they want to control the company, without outright buying it, yes. It’s the classic way to acomplish a hostile takeover. Thing is, buying half the shares on the market is often more expensive than the current market cap, as mass buying shares sends the price up quickly.
When buying a company outright (ie, your company actually owns the purchased company and both sides agreed to the transfer), then it is common to buy out all the shares at (around) current market value.
lemming741@lemmy.world 2 weeks ago
Ya gotta do it slow, like Porsche did to VW in 2005
motortrend.com/…/porsche-and-volkswagen-what-happ…