SpaceX and Tesla form independent committees to examine merger
By the AFREEQUE newsroom, based on Techcrunch
The boards of SpaceX and Tesla have each formed an independent committee to examine a possible merger between the two companies. The move follows a request from shareholders, Elon Musk said, adding that he is not taking part in the discussions because of his interests in both companies, according to TechCrunch.
The boards of SpaceX, Elon Musk’s space company, and Tesla, the carmaker he leads, have each set up an independent special committee to examine a possible merger. Elon Musk announced their creation during the presentation of SpaceX’s quarterly results, TechCrunch reports.
The committees were formed at the request of shareholders. Musk, who leads both companies and is their largest individual shareholder, said he was not taking part in the discussions because of his conflict of interest. The committee members have not been named. The executive said no agreement had been reached on the terms of a possible transaction.
Musk said he supported the idea of a merger, while stressing that it was not a foregone conclusion and would depend on shareholder support. He holds more than 50% of SpaceX’s voting rights, which could make it easier to secure their backing. Tesla has seven independent directors, according to a document filed on 19 October. SpaceX has six. Robyn Denholm, chair of Tesla’s board, and Ira Ehrenpreis, who sits on the boards of both companies, are among the independent directors cited by TechCrunch.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
