[redox99]

You seem to imply that with this deal their shares are worth 88B but without it they're worthless.

It's very hard to know how much the deal actually increases SpaceX market cap, but unless Google exits their SpaceX position soon it doesn't even make much sense as a circular deal.

[Retric]

Executive compensation is often based around share prices, so this can be worth quite a lot to the people making these decisions without any long term upside for the company.

If you want to understand how companies behave you really need to look at things from the perspective of people making the decisions.

[redox99]

I don't see Alphabet share price changing much just because of SpaceX being valued 2T instead of lets say 1T (being extremely generous). In fact this deal will hurt their profits, which is more likely to hurt Alphabet stock price than the valuation of an asset that they hold.

[panopticon]

> I don't see Alphabet share price changing much just because of SpaceX being valued 2T instead of lets say 1T

Half of Alphabet's revenue increase last quarter came from marking up unrealized gains in their Anthropic investments.

I'm not saying Alphabet is doing this to juice the share price, but I want to point out that they don't have to sell shares to post banner earnings results and see a 10% jump in share price overnight.

[redox99]

That's a good point

[brikym]

They're worthless to the S&P 500 which requires four quarters of profitability. SpaceX is running at a $5B loss. Google 'buys' $10B of compute every year...