Elon Musk merged his AI startup xAI with social media platform X in an all-stock deal, according to The Wall Street Journal. The deal was unconventional and involved X and xAI exchanging shares for stock in a new holding company, with no cash changing hands. Morgan Stanley and Sullivan & Cromwell facilitated the transaction, focusing more on their long-term relationship with Musk than deal fees. Legal experts say the companies face little risk of shareholder lawsuits since they share investors and are incorporated in Nevada. The AI startup is merging with the social media platform to gain access to the platform’s real-time, proprietary data from its hundreds of millions of active users.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Musk merges AI startup XAI with social media platform X in an all stock deal,
00:06according to the Wall Street Journal. The deal was unconventional, involves X and XAI
00:11exchanging shares for stock in a new holding company with no cash changing hands. Morgan
00:16Stanley and Sullivan and Cromwell facilitated the transaction, focusing more on their long-term
00:21relationship with Musk than deal fees. Legal experts say the company faced little risk of
00:25shareholder lawsuits since they share investors and are incorporated in Nevada. The AI startup
00:31is merging with the social media platform to gain access to the platform's real-time
00:35proprietary data from its hundreds of millions of active users. For all things money, visit
00:40Benzinga.com slash GSTV.