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0 pointsbrisance7y ago0 comments

Acquiring a company means assuming its debt obligations as well. Apple is too well-managed to do something so stupid.

0 comments

That's not always the case. It's common to do an asset sale when companies go bankrupt. I know. I've been involved in one such sale (on the buy side).

brisanceOP7y ago

And Apple management would be stupid to pay $20.5 billion for Tesla's plant, property & equipment. They may acquire an interest in Gigafactory but that's not worth $20.5 billion.

And let's not forget Tesla's largest shareholder is Elon Musk, who went on record to explicitly disparage Apple and its employees not too long ago. Do you think he would sell his beloved company to Apple? https://www.theguardian.com/technology/2015/oct/09/elon-musk...

mark2127y ago

Exactly, that's the simple definition of a Chapter 11 workout: sell the assets without the debt and distribute the proceeds to the creditors

dingaling7y ago

Apple would swallow Tesla's debt within literally a few weeks of revenue.

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