Gurley says Stargate will be a property-owner and operating-company structure with one owning and the other leasing.
“People are telling me it's gonna be a prop co op co structure, which I didn't even know it was twenty four hours ago, but it's it's like a one person owns the property.”
Gurley says the Stargate project will use a property-operating company structure he just learned about.
“People are telling me it's gonna be a prop co op co structure, which I didn't even know it was twenty four hours ago,”
Gurley questions why SoftBank would participate in a private credit pool given their typical investment approach.
“And this this I have three observations if all those things are true. One, I'm curious why SoftBank would wanna be part of a private credit pool. It's not what they've typically done.”
Gurley says propco-opco structure would add major lease liability to OpenAI's already complex cap structure.
“if it is a prop co op co structure, this represents a big lease liability or the equivalent of a lease liability for OpenAI.”
Gurley notes OpenAI already has the most complex cap structure ever seen, now adding lease liability.
“So this company already had probably the most complex cap structure of any company like it that we've ever known,”
Gurley says the Microsoft-OpenAI deal with $90 billion profit rights is one of the most complex ever.
“The deal between Microsoft and OpenAI, as it's been reported, once again, I've never seen it. Sounds like one of the more complex deals of all time. They have profit rights up to, like, $90,000,000,000.”
Gurley notes public mergers avoid the 10-15% escrow typical of private acquisitions.
“And one last thing most entrepreneurs probably don't know, when you do a public merger, there's no escrow.”
Gurley points out that public mergers have no escrow while private ones typically hold 10 to 15 percent in escrow.
“And one last thing most entrepreneurs probably don't know, when you do a public merger, there's no escrow. And most private ones have 10 to 15% escrow,”