The opportunity costs of an investment decision could weigh on Daimler, which currently operates under the name Mercedes-Benz Group AG MBGAF after some divestments. Fourteen years ago, the old automaker acquired a 9% stake Tesla Inc. TSLAvalued at $50 billion but eventually sold all of it.
Tesla bull ross tanner, Co-founder and CEO of Gerber Kawasaki Wealth And Investment Management pointed out this missed opportunity to Daimler in a tweet in November.
What happened: In 2019, the company received a lifeline from the German automaker daimler, which has now been renamed to Mercedes-Benz Group AG MBGAF., hinted that it was a missed opportunity that Daimler didn’t buy Tesla.
“Worse than a blockbuster that doesn’t buy Netflix early.” Daimler owned 9% of Tesla for $50 million and sold it very early on,” Gerber said. When the fund manager first bought shares in Tesla, he thought the legacy automaker would buy Tesla, he added.
Daimler first acquired a 9.1 percent stake in Tesla for $50 million in May 2009. The company’s 2010 annual report revealed that the automaker held an approximately 7.9% equity interest in Tesla as of December 31, 2010, with a fair value of approximately €149 million ($145.9 million) as of December 31, 2010. December 2010. The automaker was also on Tesla’s board of directors.
That stake reduced to 4% by 2014, and Daimler liquidated its entire stake, posting a net profit of $780 million, Reuters reported.
Why it matters: Stationary video rental blockbusters, which was once a thriving business, didn’t see the change that came as businesses moved online. The company once had the honor of being the world’s largest in its industry, had over 900 stores and had approximately 50 million members.
Netflix Inc. NFLXwhat was then a startup had approached Blockbuster in 2000 to sell itself for $50 million, which was promptly turned down.
It’s deja vu for…
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