Comment on Why is Tesla market cap so high ?

• spankmonkey@lemmy.world ⁨2⁩ ⁨weeks⁩ ago

  They don’t buy out all the shares, just a controlling interest or whatever they call it.

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  • 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

    VMware shareholders will elect to receive either $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share.

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  • 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.

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    • 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…

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      • Venator@lemmy.nz ⁨2⁩ ⁨weeks⁩ ago

        Maybe that’s why teslas market cap is so high: people are expecting VW group to buy them.

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