So, from what I have read about spinning a for-profit off from a non-profit, the for-profit needs to be purchased from the non-profit at market value. There have been a lot of questions about how MSFT or OpenAI's other investors would fund the purchase of the for-profit entity.
I think what this does is set a floor valuation with a fully backed bid that the non-profit would get IN CASH for essentially buying the for profit.
This really messes up OpenAI's plans because it means someone else would have to bid more and be willing to part with the cash in order for OpenAI to spin off.
Actually a brilliant move that gums up OpenAI's plans.
I don't know that this sets a floor, really. There's already a valuation, set by its own preferred investors. I'd think $97b is almost definitely below that. And do the nonprofit board members have the same fiduciary as a typical for-profit board?
The point presumably is that the valuation in a round is paper money. Whereas Elon's group have just offered cash, so they've set the actual value. The law might only care that the non-profit gets a market cash value actually bid, not the speculative value that it could have based on multipling how much some shares were sold by the number of shares.
I think what this does is set a floor valuation with a fully backed bid that the non-profit would get IN CASH for essentially buying the for profit.
This really messes up OpenAI's plans because it means someone else would have to bid more and be willing to part with the cash in order for OpenAI to spin off.
Actually a brilliant move that gums up OpenAI's plans.