Comment by piker
5 hours ago
Eh, not sure I agree here.
> It can seat four members of Anthropic’s seven-member board, and dismiss them without cause.
Good luck without a risk factor and description of that thing in the prospectus the first time that authority is invoked on a public company.
Similar language is in spacex's IPO but with musk setting the agenda and not shareholders and it flew just fine.
Market seems to tolerate bullshit better than I expected
Sorry, when you say similar language, do you mean it's disclosed? That's all I was responding to. This isn't my area, but I practiced securities law for 10 years and to me an arrangement affecting governance like this would need to be disclosed under 10(b)-5.
Yeah, over time owning stocks in public companies seems to have meant less and less in concrete terms while the prices have kept going higher.
Cannot just transplant one company's situation to another. Market tolerated Musk because its Musk. Musk has several unique qualities:
- He has track record of making bets in the past and payoff.
- He is way better at working in hardware space than software. His ai data center built out is very fast.
- He is similar to Zuck that he would pivot fast towards whatever is making money. The llm bet might not pan out as good as he thought, but he quickly transitioned into a compute seller
- He is very good at financial engineering. This is an often overlooked quality of musk. His spacex ipoed at the best time and beat both anthropic/openai to the market. Now the other 2 are trapped in the current financial situation.
One more: he is literally the richest man in the world
If not now for the IPO, why would they be compelled by investors to do it later as you imply?
Trusts are not a new mechanism.
Oh, no i'm just saying that's the trigger when you get sued