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When we measure the wealth of people, we tote up their cash, assets, and debts on a given day and take that as their worth—even if we know they’ll earn more going forward. When, on the other hand, investors value corporations, such as Costco, they take into account the company’s likely growth, and figure out a price for a share with that future in mind. (Costco is priced at forty times its current earnings.) Corporations are allowed to worm their wealth forward and backward in time by selling shares. In theory, people can do this through debt, but debt is psychologically onerous and rarely encourages personal risk-taking. The Libermans convinced themselves that, if you let people move their future wealth value around the way corporations do, people and businesses would be more evenly matched.
Is Selling Shares in Yourself the Way of the Future?
Nathan Heller
But in the merger agreement, there are also covenants, promises that Musk and Twitter make to each other about what they will do going forward, between the signing of the merger agreement and the closing. If Twitter breaches a representation, Musk still has to close unless the breach causes a material adverse effect. But if Twitter breaches a covenant, Musk can walk away: He doesn’t have to close unless Twitter “shall have performed or complied, in all material respects, with its obligations required under this Agreement.” There is no MAE requirement: You just have to comply with the covenants.
Elon Has a New Bot Excuse
bloomberg.com
To put this in perspective, let’s say Qualcomm sells 6 million of their CPUs at $150 each, that works out to $900 million in revenue for roughly 2% market share. Their total revenue for this product is less than the theoretical tape out expense for Apple’s new family. This is not a direct comparison, but it does highlight the huge advantage Apple is building for itself.
Apple M3 and the State of CPUs
digitstodollars.com
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