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As will no doubt be reported everywhere shortly, Tesla and SolarCity have reached a deal for Tesla to buy SolarCity. The Wall Street Journal says, "The all-stock deal values SolarCity at about $2.6 billion, with SolarCity stockholders receiving 0.11 share of Tesla for each share of SolarCity, valuing them at $25.83 apiece, according to Friday's closing prices. The deal's value comes in lower than the original range of $26.50 to $28.50 per share Tesla had proposed in June. Mr. Musk said Monday he wasn't involved in talks about the valuation of the purchase."
Electric vehicle maker Tesla expects to achieve "significant" cost savings and "dramatic improvements" in manufacturing efficiency as a result of the acquisition of solar panel installer SolarCity, Tesla Chief Executive Officer Elon Musk said on Monday.
Musk said the combined companies will have a "stronger balance sheet," but likely will require a "small equity capital raise" next year. Both companies have been burning through cash and have projected achieving positive cash flow later this year.
Musk is the largest shareholder in both companies and is chairman of SolarCity. His cousins Lyndon Rive and Peter Rive are co-founders of SolarCity.
Source: Reuters
Additional reporting here and here.
(Score: 5, Interesting) by LoRdTAW on Tuesday August 02 2016, @01:44PM
I imagine the meeting between the two boards went something like this:
Musk, seated at the Tesla side of the conference table begins pitching his bid to solar city for a merger.
Musk then gets up, walks to the other side of table, the solar city side, and sits down in a posture evoking heavy thought.
Musk then begins to explain his thoughts on how the merger will be beneficial or harmful to solar city.
Again, musk gets up, walk back to Tesla side of table and begins to further explain his greater plans for the future.
This goes on for an hour or so. Progressing from casual stroll to furious running as the excitement escalates.
Finally, a sweaty Musk seals the deal and the two sides come to an agreement. He shakes his own hand.
Well done sir!