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Elon Musk has formed a trio of holding companies in his pursuit of Twitter, potentially paving the way for him to combine all of his business ventures into a new super company.’ According to Bloomberg, Mr Musk registered three new companies under variations of the name “X Holdings” in the tax-friendly state of Delaware on Tuesday. According to SEC filings, Mr Musk intends to put money into one of the entities to fund the purchase of Twitter shares in a tender offer, while a subsidiary would integrate with the social media firm, according to the New York Post. It is unclear whether the holding companies will have any ties to Mr Musk’s current businesses, which include Tesla and SpaceX. It is worth noting, however, that the billionaire had considered establishing a parent company as early as 2012. Mr Musk even stated in 2020 that naming the parent company “X” was a good idea.
It is unclear whether the holding companies will have any ties to Mr Musk’s current businesses, which include Tesla and SpaceX. It is worth noting, however, that the billionaire had considered establishing a parent company as early as 2012. Mr Musk even stated in 2020 that naming the parent company “X” was a good idea.
Notably, Mr Musk did not dismiss the idea of forming a parent company during a TED talk last week. However, he stated that establishing such a holding company would be “difficult.” He stated that Tesla is a publicly traded company, and that the “investor bases of Tesla, SpaceX, and certainly Boring Co. and Neuralink are quite different.”
According to experts, Mr Musk would have to follow in the footsteps of other tech titans like Google, which restructured itself in 2015 to create a new holding company called Alphabet Inc. to combine his companies under one parent entity. He would also have to acquire SpaceX, Neuralink, and Boring separately, all of which are private and have seen their valuations rise in recent years.
