Oct 21 (Reuters) – Elon Musk said on Tuesday that a merger of his two companies, SpaceX and Tesla, would be “a good idea” and that they had formed special committees to discuss a union.
The news sent shares of the space and technology company up 8% in extended trading.
This is what people are saying about the proposed merger:
DANIEL NEWMAN, CEO, THE FUTURUM GROUP:
“The merger has been inevitable pretty much since the announcement of the SpaceX IPO … Bottom line is the two companies bring together Space, AI, Autonomy, and Robotics and would be arguably the most well positioned company on the planet for what comes next.”
BRIAN MULBERRY, CHIEF MARKET STRATEGIST, ZACKS INVESTMENT MANAGEMENT:
“It’s a known possibility of a merger and it seems that each company is building the case on existing synergies which would then lead to greater efficiencies in the future.
“It would still be subject to votes from each shareholder community, but it seems like things are headed that way as Elon mentioned it twice on the call just now.”
YURI KHODJAMIRIAN, CHIEF INVESTMENT OFFICER, TEMA ETFs:
“In our view the combination makes sense – it brings together everything under one roof and the companies are already working on major joint projects, e.g. Terrafab.
“We think the special committees are a good step and it looks like a good effort is being made to address the governance challenges.”
(Reporting by Abhirup Roy and Akash Sriraj; Compiled by Anne Marie Roantree; Editing by Sonali Paul)
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