"Why it matters: Positive stock performance helps explain why so many free-market capitalists have signed onto something that seems more socialist than not. And why others will do so when given the opportunity. By the numbers: The White House appears to have agreed to equity deals with nine companies, most which are publicly traded. The public cohort saw their share prices climb an average of 85% between the time of announcement (or press leak, if earlier) and yesterday, per an Axios analysis."
"Intel shares, for example, have more than doubled since the chipmaker agreed to sell a 9.9% equity stake to the U.S. government last August. Trilogy Metals shares are up 171%, while MEP Materials stock has seen a 122% jump. Carveouts: The average increase doesn't include the "golden share" in U.S. Steel, which now is owned by Japan's Nippon Steel. Also not included are deals with private companies (e.g., Vulcan Elements, xLight) or bespoke revenue-share deals (e.g., AMD, Nvidia)."
Positive post-announcement stock returns have made government equity deals attractive to many private-sector capitalists. The White House appears to have agreed to equity transactions with nine companies, most publicly traded. The public cohort experienced an average share-price increase of 85% between announcement (or earlier leaks) and yesterday. Intel’s shares more than doubled after selling a 9.9% equity stake to the U.S. government. Trilogy Metals rose 171% and MEP Materials rose 122%. Calculations exclude the U.S. Steel 'golden share', private-company deals, bespoke revenue-share arrangements, and a convertible Pentagon investment in L3Harris. Rising valuations encourage further deals.
Read at Axios
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