Latest / Bloomberg Intelligence / Barry Diller Offers to Buy Rest of MGM in Deal Valued at Nearly $19 Billion

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Barry Diller Offers to Buy Rest of MGM in Deal Valued at Nearly $19 Billion · Bloomberg Intelligence

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  Speaker 2: All right, it is Monday, which means M and A
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  Speaker 2: is in the house right now. And one of the
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  Speaker 2: big ones that we're keeping an eye on here is
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  Speaker 2: people offering to buy MGM Resorts for forty eight dollars
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  Speaker 2: thirty cents a share in cash. And for anyone who's wondering,
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  Speaker 2: people incorporated as a company controlled by Barry Diller. So
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  Speaker 2: let's bring in Jody Lourie. She's our senior credit analyst
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  Speaker 2: for more on this. Jody walk us through what this
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  Speaker 2: looks like, because this is forty eight dollars storty cents
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  Speaker 2: a share in cash.
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  Speaker 3: Is there going to be debt involved?
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  Speaker 4: Oh, there is going to be debt involved, Starlette, I
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  Speaker 4: will not doubt that by any measure.
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  Speaker 3: Now, of course, is the deal going to get done?
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  Speaker 3: That's the bigger question.
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  Speaker 4: But right now, so people owns twenty six point one
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  Speaker 4: percent and they're planning on increasing that by twenty four
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  Speaker 4: percent in terms of total ownership, or twenty four percentage
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  Speaker 4: points in total ownership, and so they want to own
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  Speaker 4: fifty point one percent and have other investors on the
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  Speaker 4: other amount.
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  Speaker 3: Now, if you look.
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  Speaker 4: At the whole package of that seventy four percent that's
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  Speaker 4: getting acquired, we estimate that's about eight billion in debt.
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  Speaker 4: If you exclude the amount of cash that people has
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  Speaker 4: on hand, which is a little over a billion, it's
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  Speaker 4: at one point one billion. So eight billion dollars is
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  Speaker 4: quite a lot. Now, if you only look at what
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  Speaker 4: they're going to buy, it's still you know, it's still
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  Speaker 4: a large amount. It's still four or five billion dollar
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  Speaker 4: in terms of leveraging up the company. So we're talking
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  Speaker 4: leverage going from mid five times to mid seven times
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  Speaker 4: on a lease adjusted basis for MGM. And we view
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  Speaker 4: this less so as an acquisition by equals, more so
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  Speaker 4: as an LBO type structure, So really just leveraging up MGM,
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  Speaker 4: putting all the debt on MGM, and creating a situation
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  Speaker 4: in which MGM's private, in which they have more debt
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  Speaker 4: on the balance sheet and it's going to be at
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  Speaker 4: odds with of course, the large leases that they already have,
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  Speaker 4: which is about you know, three quarters of the debt
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  Speaker 4: that they have on hand.
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  Speaker 5: As a former banker, I don't like this balance sheet.
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  Speaker 5: Start with what's your market telling you, Jody, I mean,
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  Speaker 5: how did these does trade?
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  Speaker 4: Yeah, so, Paul, it's one of those names that really
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  Speaker 4: frustrates me in general, just because a few years ago
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  Speaker 4: they decided to do a sale lease back of all
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  Speaker 4: the US assets. So they got rid of all US
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  Speaker 4: assets and instead went into this sale easepack structure, which
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  Speaker 4: is basically, they pay rent, they pay rent, they pay
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  Speaker 4: they pay taxes, they pay all the upkeeping capex and
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  Speaker 4: operating operating costs on the properties. But they're a tenant
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  Speaker 4: and so you look at that and you say, well,
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  Speaker 4: wait a minute, what's the benefit of that. These are
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  Speaker 4: long term structures with a few parties and you're paying constantly. Now,
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  Speaker 4: it is a little bit cheaper in theory than borrowing
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  Speaker 4: debt all the time, but it is one of those
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  Speaker 4: situations that as a bondholder, you say, okay, if they
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  Speaker 4: only have about five six billion, seven billion in debt outstanding,
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  Speaker 4: but then they have about twenty nine billion or twenty
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  Speaker 4: five billion excuse me, in operating leases, you're not really
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  Speaker 4: a big fan of that. And so this is a
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  Speaker 4: company where from a business perspective, it's really fantastic in
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  Speaker 4: terms of the reach, in terms of the geo structure
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  Speaker 4: that they have. I mean, they have buildings in Osaka,
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  Speaker 4: you know, they have buildings. Obviously, they have MGM China,
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  Speaker 4: which is based in Macaw, they have all throughout the
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  Speaker 4: US and a really big stronghold in Vegas. But then
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  Speaker 4: you just throw on those operating leases and as a
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  Speaker 4: bondholder you can never get comfortable, but even more so
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  Speaker 4: now when it's going to get levered up and so
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  Speaker 4: the bonds are just widening.
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  Speaker 3: Jody, what's going on in the casino sector. We had
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  Speaker 3: you on last week when.
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  Speaker 2: We talked about for Tita Entertainment buying Caesars, and now
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  Speaker 2: you have people's buying the chunk of MGM resource that
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  Speaker 2: doesn't already own what's happening in the casino business fundamentally
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  Speaker 2: that is causing or that is triggering all this M
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  Speaker 2: and A.
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  Speaker 4: So Scarlett, I think we're in a little bit of
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  Speaker 4: a late stage indication from a credit cycle perspective. If
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  Speaker 4: I had to opine on it, just because you only
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  Speaker 4: see these sort of scenarios in these later stages, right
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  Speaker 4: that's when the LBOs happen. We also have the political
• 4:31
  Speaker 4: situation where things are a little bit more lax at
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  Speaker 4: the DOJ and the SEC, and so that also opens
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  Speaker 4: the door to these acquisitions getting done even being a possibility.
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  Speaker 4: But for gaming in particular, it's sort of interesting because
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  Speaker 4: we also have the prediction markets, which of course have
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  Speaker 4: created all sorts of waves in the industry in terms
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  Speaker 4: of the digital side of things. So that online gaming
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  Speaker 4: sports betting component has been a big sort of avenue
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  Speaker 4: for growth a lot for a lot of these companies
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  Speaker 4: where it's really just you know, other is not really
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  Speaker 4: a very exciting industry, and the prediction markets is definitely
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  Speaker 4: shaking it up a little bit in the US and
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  Speaker 4: causing questions of what's the next growth story. So it's
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  Speaker 4: not really so surprising that these investors are coming in
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  Speaker 4: and saying, hey, I can do a better job, particularly
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  Speaker 4: investors that are already smart in the industry. They've already
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  Speaker 4: been involved in it in some sense, or involved in
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  Speaker 4: related industries in some sense. So we're not surprised as
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  Speaker 4: much as we are intrigued and concerned for creditors.
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  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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• 5:51
  Speaker 5: Let's talk about our good friends at Berkshire Hathaway. Matthew
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  Speaker 5: palos Oli. He joints us here from Bloomberg Intelligence. He
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  Speaker 5: covers all the insurance companies, including Berkshire Hathway Ay Berkshire
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  Speaker 5: Hathway in the market again here for a deal. What
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  Speaker 5: is Taylor Marson? And what if somebody is a Berkser
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  Speaker 5: shareolder think about this deal?
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  Speaker 6: So you may or may not recall I was in
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  Speaker 6: here a couple of weeks ago and I had said
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  Speaker 6: what I would like to see Greg Abell do is
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  Speaker 6: hit some doubles and singles. Perhaps I think this is
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  Speaker 6: exactly in line with that. So Taylor is a home builder.
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  Speaker 6: Berkshire owns the biggest off site homebuilder in the country.
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  Speaker 3: And what does off site home builder mean?
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  Speaker 6: So they build the house and then they bring you
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  Speaker 6: the house. So when I was at the annual meeting
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  Speaker 6: in May. They literally had houses inside of the convention center,
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  Speaker 6: and those houses more in the affordable end. This is
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  Speaker 6: a vertically integrated company. Their company, they own Clayton, so
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  Speaker 6: they do it from beginning to end. They sell the house.
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  Speaker 6: The houses are maybe around two hundred thousand dollars. This
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  Speaker 6: company they're buying fits very nicely with it because they're
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  Speaker 6: an on site builder of more higher end homes, so
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  Speaker 6: it's complementary to the business the business that they have.
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  Speaker 6: They're not paying too much. It's eight point five billion,
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  Speaker 6: that's about two percent of their three hundred and seventy
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  Speaker 6: three billion cash as of March thirty first, and the
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  Speaker 6: valuation these stocks have been beat up, as you might
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  Speaker 6: have guessed, so the valuations down. I think I'm not
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  Speaker 6: a home builder analyst, but Taylor was underperforming peers, and
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  Speaker 6: I don't think Berkshire minds that all that much to
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  Speaker 6: get it at probably a discount to its historical valuation.
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  Speaker 2: And one thing that analysts point out is the fact
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  Speaker 2: that greg Abel said that they want to overtime unify
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  Speaker 2: our site built home building operations into a combined platform.
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  Speaker 2: With this new purchase of Taylor Morrison and combine it
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  Speaker 2: with Clayton Holmes. This is a different strategy, isn't it
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  Speaker 2: from Berksher's usual approach of letting acquisitions run on their
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  Speaker 2: own under their own branding.
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  Speaker 3: Yeah.
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  Speaker 6: No, that's a good thing to point out, Scarlett. They
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  Speaker 6: typically Berkshire does not ever talk about synergies or or
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  Speaker 6: or use that as any kind of justification forever buying something,
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  Speaker 6: but greg Abel did specifically not so Clayton. They do
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  Speaker 6: the business where they build a house and they bring you.
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  Speaker 6: They have a smaller business where they do build it
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  Speaker 6: on the site, and they were building building that unintended
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  Speaker 6: over time through acquisitions. So what Able's saying is we're
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  Speaker 6: going to take that business and probably fold it into
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  Speaker 6: the tailor business and it's probably a better run through them. Also,
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  Speaker 6: by the way, Berkshire owns a ton of manufacturing component businesses,
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  Speaker 6: So Paul, you probably have the Benjamin Moore cea foam
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  Speaker 6: pain in your shorehouse. That's a Berkshire Hathaway product.
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  Speaker 7: Right.
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  Speaker 6: They do flooring installations, all kinds of companies, and again
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  Speaker 6: they don't talk about like having synergies here, but there's
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  Speaker 6: definitely some opportunity to.
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  Speaker 3: So they control a lot of the supply chain.
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  Speaker 6: Yeah, and Taylor. While Clayton is vertically integrated, Taylor buys
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  Speaker 6: from suppliers.
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  Speaker 5: What's the cadence of acquisition activity for Berksher Hathaway. They
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  Speaker 5: like to do one a year, two a year one.
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  Speaker 6: We're just opportunistic, you know the answer to that, Paul,
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  Speaker 6: They're going to do it when they see it in
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  Speaker 6: the market.
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  Speaker 5: They don't.
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  Speaker 6: There's no timetable, there's no you know, we have to
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  Speaker 6: do it. We have to deploy cash in any way.
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  Speaker 6: They preach patients over anything. So I think it's you know,
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  Speaker 6: when we see the deal, we do it. In the
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  Speaker 6: note we put out today, we do have the deals
• 9:24
  Speaker 6: and capital deployment that they have done over time, and
• 9:27
  Speaker 6: it is I think more than you'd realize. They spend
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  Speaker 6: twelve billion dollars on Google stock in the first quarter,
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  Speaker 6: which is bigger than this acquisition.
• 9:35
  Speaker 2: We look at Berkshire Hathway shares and they've kind of underperformed,
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  Speaker 2: down five point six percent this year when the SMP
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  Speaker 2: is up about eleven percent. Does this kind of deal
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  Speaker 2: help persure makeups some that gap?
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  Speaker 7: Probably not.
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  Speaker 6: I don't think so. I think this is probably able
• 9:52
  Speaker 6: building investor confidence over time. I mean, I think that
• 9:56
  Speaker 6: the the leaving of warm Buffett really left a whole
• 10:00
  Speaker 6: in the hearts and minds of people investing in the company,
• 10:03
  Speaker 6: and I think that needs to be rebuilt. I think,
• 10:06
  Speaker 6: ironically Berkshire's the kind of proto ANTIAI trade. You know,
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  Speaker 6: they have all hard assets, they have a financial business,
• 10:14
  Speaker 6: and the insurance should you see the AI trade kind
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  Speaker 6: of sell off be the natural company that I would
• 10:20
  Speaker 6: think would benefit from that. But even in the times
• 10:22
  Speaker 6: where that has happened earlier in the year, it hasn't
• 10:24
  Speaker 6: really over themed.
• 10:28
  Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this.
• 10:33
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
• 10:40
  Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
• 10:43
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 10:48
  Speaker 2: Video is entering the PC market with this new RTX
• 10:51
  Speaker 2: spark super chip. It's of course causing repercussions across a
• 10:56
  Speaker 2: chip space. We see Intel shares AMD shares to line.
• 11:00
  Speaker 2: Of course they are competitors. Let's bring in Mandeep Seing,
• 11:03
  Speaker 2: our global tech research head here at Bloomberg Intelligence for
• 11:06
  Speaker 2: more on this. So mand Jensen Hook made the announcement
• 11:09
  Speaker 2: in tipaid and Industry conference. How big a deal is
• 11:12
  Speaker 2: this that in Nvidia is entering the PC market.
• 11:15
  Speaker 7: Well, PC is a saturated market, you know, when you
• 11:19
  Speaker 7: think about the PC market, two hundred and fifty million
• 11:21
  Speaker 7: units a year grows probably low single digit So it's
• 11:26
  Speaker 7: not that exciting compared to some of the other stuff
• 11:29
  Speaker 7: that they've been doing on the server side and the
• 11:31
  Speaker 7: data center side, and the numbers would pay in comparison.
• 11:35
  Speaker 7: I think where they're going with this is they think
• 11:39
  Speaker 7: the physical AI would be a much bigger opportunity. Now,
• 11:43
  Speaker 7: when I say physical AI, it's your robotics, your humanoids
• 11:47
  Speaker 7: and that kind of stuff, and you're not going to
• 11:49
  Speaker 7: be able to do that just by focusing on the
• 11:53
  Speaker 7: server and the data center market. So they really want
• 11:56
  Speaker 7: to expand into other areas to build that ecosystem where
• 12:00
  Speaker 7: they have, you know, a PC footprint, and they just
• 12:04
  Speaker 7: don't want to be the chip provider anymore. That's been
• 12:07
  Speaker 7: Invidiou's key struality over the past few years is they
• 12:10
  Speaker 7: will give you all in terms of the Kuda software
• 12:14
  Speaker 7: stuff on the networking side, rather than just being confined
• 12:18
  Speaker 7: to being a GPU provider. And that's where they're going
• 12:21
  Speaker 7: with this is Look, you guys can run agentic AI
• 12:24
  Speaker 7: on our PCs. Now. Granted, their market share would be,
• 12:29
  Speaker 7: you know, low single digit. I don't expect it to
• 12:31
  Speaker 7: really take off and displace Intel our AMD, But what
• 12:35
  Speaker 7: they're trying to prove is the concept that in theory,
• 12:39
  Speaker 7: we can have our own PC and that is what
• 12:41
  Speaker 7: will position us well for that roboty if.
• 12:43
  Speaker 5: We choose to go down that d Yeah, the strategy
• 12:47
  Speaker 5: guy who advised Jensen Wang to do this, he'll be
• 12:49
  Speaker 5: out of a job in twelve months. I guarantee you.
• 12:51
  Speaker 3: This is why this PCs.
• 12:54
  Speaker 5: That's like some nineteen eighties dude. I mean, I'm an
• 12:57
  Speaker 5: AI company. I just want the AI or that's all
• 13:00
  Speaker 5: I want. I don't need to be making anything. I
• 13:04
  Speaker 5: don't want people touching my product. I just want to
• 13:06
  Speaker 5: be the AI company. That is what Scott Nvidia to
• 13:09
  Speaker 5: where it is now. I would argue it.
• 13:10
  Speaker 7: Has, but look at what they've done on the server side.
• 13:14
  Speaker 7: Server wasn't a very fast growing market. Suddenly everyone wants
• 13:19
  Speaker 7: to be in the server market. Why because the nature
• 13:22
  Speaker 7: of compute has changed with AI workloads, and with Agent TAKEAI,
• 13:27
  Speaker 7: we're talking about a very different type of compute than
• 13:30
  Speaker 7: what we are used to seeing on our desktops and laptops.
• 13:33
  Speaker 7: And so from that perspective, if the new interface for
• 13:37
  Speaker 7: Agent TAKEAI is conversational and a lot of stuff happens
• 13:41
  Speaker 7: in the background with an agent, then clearly your old
• 13:45
  Speaker 7: PC is not good enough for that.
• 13:47
  Speaker 5: Just doesn't have the technology chops that I do. I
• 13:49
  Speaker 5: can think way out in advance, and I don't want
• 13:52
  Speaker 5: to be with you exactly.
• 13:54
  Speaker 2: Clearly put into context for us another headline we got
• 13:58
  Speaker 2: on in video, which is it Saysthropic, Open AI and
• 14:01
  Speaker 2: SpaceX or among the first big users of this upcoming
• 14:03
  Speaker 2: microprocessor called Verra CPUs in their data centers. What is
• 14:07
  Speaker 2: this about and how does this fit in with the
• 14:09
  Speaker 2: broader strategy.
• 14:11
  Speaker 7: Yeah, so via Rubin, as you know, is their new
• 14:13
  Speaker 7: architecture after Blackwealth what they currently have, and they talked
• 14:18
  Speaker 7: about ramping it to full production in fall, and as
• 14:22
  Speaker 7: part of that they're really toouting you know, the CPU
• 14:26
  Speaker 7: portion of that Vira system that has got you know,
• 14:30
  Speaker 7: GPUs networking and everything in terms of an optimized system infrastructure.
• 14:35
  Speaker 7: So they are saying our CPU, which works very well
• 14:39
  Speaker 7: in this system. Integrated architecture will help you deploy agent AI.
• 14:45
  Speaker 7: And the reason why that stress on CPU is because
• 14:48
  Speaker 7: with Agent Tachai, the shift from chatbots to agent Takai,
• 14:53
  Speaker 7: the importance of CPU has grown. So they think CPU
• 14:56
  Speaker 7: is a big market and it's an important part of
• 14:59
  Speaker 7: that agentic rca detector and hence why this stress on SEA.
• 15:02
  Speaker 2: So black Claws, the current most advanced AI chip VIA
• 15:05
  Speaker 2: is the next generation.
• 15:06
  Speaker 4: That's right.
• 15:07
  Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
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• 15:29
  Speaker 5: We're supposed to be Isabell Lee Last Hour and extend.
• 15:32
  Speaker 5: They bait and switch me put Eric Malchunis in, which
• 15:34
  Speaker 5: was a crushing.
• 15:35
  Speaker 3: That was a downgrade for you.
• 15:36
  Speaker 5: That was a downgrade for you. But we got Isabella
• 15:38
  Speaker 5: Lee now cross Asser reporter for Bloomberg News. She's in
• 15:40
  Speaker 5: our studio.
• 15:42
  Speaker 3: You guys have a big take story out today.
• 15:44
  Speaker 5: Lu Wang Bailey, Lipschultz and you, Isabella Lee, this SpaceX ipo.
• 15:48
  Speaker 5: This is kind of setting new rules and new norms
• 15:50
  Speaker 5: for the IPO market, is it.
• 15:52
  Speaker 8: Yes, it's just so consequential. It's reorganizing a lot of
• 15:55
  Speaker 8: the parts of the markets, and one of those that
• 15:57
  Speaker 8: it's reorganizing is the stead quiet world of passive investing.
• 16:01
  Speaker 8: So because a lot of the companies behind the massive
• 16:05
  Speaker 8: indexes you can think of the company behind SMP five hundred,
• 16:08
  Speaker 8: NASAK one hundred, Russell, they're changing and have changed their
• 16:12
  Speaker 8: rules to accommodate megacap IPOs like SpaceX. They don't really
• 16:17
  Speaker 8: say it's for SpaceX, it's just SpaceX, because when companies
• 16:20
  Speaker 8: go public these days, it's they're mega companies as opposed
• 16:24
  Speaker 8: to in the past when they're just you know, a company. Now,
• 16:26
  Speaker 8: you scale privately, you raise funds privately, and when you
• 16:29
  Speaker 8: go public, you're the super giant company.
• 16:31
  Speaker 1: So for the.
• 16:32
  Speaker 8: NASAC, I think the seasoning period, which you can think
• 16:34
  Speaker 8: of it as a wait time before they add you
• 16:36
  Speaker 8: to the NASAK one hundred. It used to be three months.
• 16:39
  Speaker 8: They've narrowed it down to fifteen days. For foot T
• 16:41
  Speaker 8: one hundred, it's five days. SMP is still in consultation,
• 16:44
  Speaker 8: but from twelve months six.
• 16:46
  Speaker 2: Months, right, I mean it feels like they have to
• 16:48
  Speaker 2: go down that pass if everyone else did. Is this
• 16:50
  Speaker 2: a one time thing where they're changing for SpaceX or
• 16:53
  Speaker 2: is this from here on out?
• 16:54
  Speaker 3: Because if the SpaceX IPO goes off.
• 16:56
  Speaker 2: Without a hitch, then we're also going to see Anthropic
• 16:59
  Speaker 2: and open AI list as well, and they too could
• 17:01
  Speaker 2: then potentially join the NAS like one hundred after fifteen
• 17:04
  Speaker 2: trading days.
• 17:04
  Speaker 8: Yes, they never say it's for SpaceX, it's for megacap companies,
• 17:08
  Speaker 8: so one good thing. It's likely also for anthropic and
• 17:11
  Speaker 8: open AI. And this isn't unprecedented in the past, they've
• 17:13
  Speaker 8: also tried to change your rules to accommodate META if
• 17:15
  Speaker 8: I'm not mistaken in twenty twelve, but Annals estimate that
• 17:19
  Speaker 8: for SpaceX, if the rules apply, index funds would have
• 17:22
  Speaker 8: to buy twenty billion dollars worth of SpaceX shares, which
• 17:26
  Speaker 8: is a lot, and that could really move the markets.
• 17:28
  Speaker 8: And that's not even considering where it will be. Is
• 17:31
  Speaker 8: it going to be communication, Is it going to be industrial, Is.
• 17:33
  Speaker 3: It going to be what? Is it going to be
• 17:34
  Speaker 3: classic classication?
• 17:36
  Speaker 7: Yes?
• 17:36
  Speaker 8: Is it going to be a tech firm. So yeah,
• 17:38
  Speaker 8: no one knows, but it's.
• 17:39
  Speaker 5: Interesting you mentioned that because I was wondering, like what analysts,
• 17:42
  Speaker 5: which analysts on Wall Street will be covering the yes,
• 17:45
  Speaker 5: and so what I want to understand is a lot
• 17:47
  Speaker 5: of the aerospace and defense.
• 17:49
  Speaker 8: Rockets usually are industrials. But then if you look at
• 17:51
  Speaker 8: the revenue generating I mean, it has cloud services, deals
• 17:54
  Speaker 8: with anthropic that's communication.
• 17:56
  Speaker 3: Sorry, no, that's tech.
• 17:58
  Speaker 8: But then they Nicolas Colas of Data Trick awesome, he
• 18:03
  Speaker 8: said it might be communications because of the sales, and
• 18:06
  Speaker 8: guess we're alphabet and meta is communications.
• 18:09
  Speaker 2: No matter what, it's going to be the gigantic company
• 18:12
  Speaker 2: in that sector, especially if it's something like communications, which
• 18:14
  Speaker 2: doesn't have as many names as the tech sector.
• 18:16
  Speaker 8: One hundred percent. But it's just so unprecedented, to be honest,
• 18:19
  Speaker 8: and it will also pave the way for the mega
• 18:21
  Speaker 8: IPOs we're going to see at the end of this year.
• 18:24
  Speaker 5: And what I like about the Big Takes stories AI,
• 18:26
  Speaker 5: they're just really interesting stories, and they're deeply resourced and
• 18:30
  Speaker 5: deeply sourced all that kind of cool stuff. Even nice pretty.
• 18:32
  Speaker 3: Pictures likes always.
• 18:35
  Speaker 5: Help, And they've got a pretty picture about how SpaceX
• 18:38
  Speaker 5: IPO stacks ups in terms of offer size, the biggest
• 18:42
  Speaker 5: in terms of market cap one point eight trillion, second
• 18:45
  Speaker 5: only to a round.
• 18:45
  Speaker 8: I think can just compare on it.
• 18:47
  Speaker 5: It's just extraordinary. So it's way way off the grid here,
• 18:52
  Speaker 5: I guess, you know, do we expect this thing to
• 18:55
  Speaker 5: just do a normal road show? Are they going to
• 18:56
  Speaker 5: go to do we I haven't even seen a road
• 18:58
  Speaker 5: show schedule. Are they going to do in New York?
• 19:00
  Speaker 5: At they in London? And day that?
• 19:01
  Speaker 3: I'm not sure.
• 19:02
  Speaker 8: I think it's going to be mid June. But I
• 19:03
  Speaker 8: want to bring up one important point. Also, they're going
• 19:05
  Speaker 8: to allot thirty percent of retail traders, and just this
• 19:08
  Speaker 8: morning newsbrook that five percent will be allotted to employees,
• 19:11
  Speaker 8: which I think is more normal.
• 19:12
  Speaker 3: Why is that unusual? That's a huge.
• 19:14
  Speaker 8: Size because in the old playbook, it's institutional money that
• 19:17
  Speaker 8: gets a lot of this and retailers are just left
• 19:19
  Speaker 8: with leftovers. But now it's really putting the retail investors
• 19:23
  Speaker 8: to a pedestal and recognizing them to be an important part.
• 19:26
  Speaker 8: I mean, it's thirty percent, which is still minority compared
• 19:29
  Speaker 8: to seventy percent, but that's bigger than anything.
• 19:32
  Speaker 5: Well, my deals. If retail, that means this a bad deal.
• 19:35
  Speaker 5: I couldn't get to the institution.
• 19:37
  Speaker 3: But this is different. This is Elon, and I think
• 19:39
  Speaker 3: is it.
• 19:39
  Speaker 2: Different because does that mean there's gonna be enough demand
• 19:42
  Speaker 2: after the stock lists? And is a publicly traded company,
• 19:45
  Speaker 2: is it going to have that swell of demand that
• 19:47
  Speaker 2: usually boosts the share price.
• 19:48
  Speaker 8: I think that's what everyone's going to be worried about.
• 19:51
  Speaker 8: And then if you go through Reddit, the best source
• 19:53
  Speaker 8: on Earth.
• 19:54
  Speaker 5: I know I've got it on my phone, but I
• 19:55
  Speaker 5: just don't find it useful.
• 19:57
  Speaker 2: To talk about we're getting you, We're going to your
• 20:00
  Speaker 2: It's going to be convers people.
• 20:01
  Speaker 8: Where like why will I even buy? They think it's
• 20:03
  Speaker 8: a scam. We all know some people think that, but
• 20:05
  Speaker 8: others are like, why will I even try buying when
• 20:07
  Speaker 8: it's going to be in my index fund aka my
• 20:09
  Speaker 8: brache account soon, which again because of the seasoning shortened.
• 20:14
  Speaker 5: And then another little derivative trade is do I sell
• 20:17
  Speaker 5: my Tesla because I can get Ela on by just
• 20:20
  Speaker 5: owning SpaceX.
• 20:21
  Speaker 2: Too much concentration risk if you have both Tesla and SpaceX,
• 20:24
  Speaker 2: So if you.
• 20:24
  Speaker 8: Have an index fund, you've basically have SpaceX in a
• 20:26
  Speaker 8: few months.
• 20:28
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