Randy_W said:
GM has total assets of over $300 billion! That does not include spinoffs that answer directly to GM which total another $220 billion.
Aren't they cancelled out by the liabilities on the balance sheet?
In order to acquire GM, another company only needs to pay the shareholders their asking price. The current market cap is $13 billion not $12 billion, my mistake. That is how much it would cost to pay-off all the shareholders.
However, I am sure that the shareholders will want substantially more, a lot more. So, even if the asking price is $50 billion (totally overpriced), I am sure Toyota could come up with the cash.
There would probably be a stock swap involved and GM shareholders would love that, because they would finally get a good return on their investment. Toyota has a market cap of a $160 billion. Toyota is rich, rich like Exxon Mobil rich.
However, I just don't see any chance of this happening. Why would Toyota do this? It doesn't make sense.
It really sucks to be almost bankrupt.