By completing the SpaceX–xAI deal while both companies remain privately held, and now closed, Musk can effectively set relative valuations, negotiate terms within a founder‑controlled ecosystem, close, and then inform investors, without the procedural drag and disclosure obligations that attend a public‑company merger. That flexibility can reduce near‑term execution friction. It does not, however, eliminate fiduciary exposure; rather, it may defer scrutiny to the IPO phase, when investors and regulators will examine how and why the combination occurred, how it was priced, and how related‑party dynamics were managed.
But this may mess up the proposed IPO.[1]
By completing the SpaceX–xAI deal while both companies remain privately held, and now closed, Musk can effectively set relative valuations, negotiate terms within a founder‑controlled ecosystem, close, and then inform investors, without the procedural drag and disclosure obligations that attend a public‑company merger. That flexibility can reduce near‑term execution friction. It does not, however, eliminate fiduciary exposure; rather, it may defer scrutiny to the IPO phase, when investors and regulators will examine how and why the combination occurred, how it was priced, and how related‑party dynamics were managed.
[1] https://www.dandodiary.com/2026/03/articles/director-and-off...