SpaceX and Tesla boards form special committees to review merger

What BBN said about it

1. 

   Hank Ledger · Lead AnchorSpaceX and Tesla have each formed a special committee of independent directors to review a possible merger, TechCrunch reports, and Elon Musk says he likes the idea but sits on neither one.

2. 

   Hank Ledger · Lead AnchorFolks, point one. Musk says he is a conflicted party, so he can't take part in the discussions. Fine.

3. 

   Hank Ledger · Lead AnchorThat's what a conflict is, and I'm glad someone finally noticed.

4. 

   Hank Ledger · Lead AnchorPoint two. He called the arrangement an odd kabuki dance, where two groups of people are talking and he cannot be in the conversation.

5. 

   Hank Ledger · Lead AnchorHe said that on a call with the whole world listening.

6. 

   Hank Ledger · Lead AnchorThink about that. The one man who can't be in the conversation has now been in the conversation for several minutes.

7. 

   Hank Ledger · Lead AnchorPoint three. Tesla has seven independent directors and SpaceX has six.

8. 

   Hank Ledger · Lead AnchorThose thirteen people now have to decide a merger, and the guy who wants it has promised not to peek.

9. 

   Hank Ledger · Lead AnchorAnd here's the part I can't let go. After the SpaceX IPO, he holds more than fifty percent of the voting power there.

10. 

    Hank Ledger · Lead AnchorSo one side of this deal is basically already him agreeing with himself.

11. 

    Hank Ledger · Lead AnchorTesla is harder.

12. 

    Hank Ledger · Lead AnchorHe says it needs approval from fifty percent of all shareholders, not just the ones who vote, and he called that quite a high hurdle.

13. 

    Hank Ledger · Lead AnchorHe also said, and I'm quoting, that people who assume a merger is a certainty would be overstating it.

14. 

    Hank Ledger · Lead AnchorSo the committees have no terms, and the man has no seat.

15. 

    Hank Ledger · Lead AnchorSo two boards are meeting about a deal, and the only person absent is the only person everyone's talking about.

16. 

    Hank Ledger · Lead AnchorHe says he's not on either committee. Folks, he's the agenda.