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loeg • today at 8:24 PM • 2 replies • view on HN

It's not dilutive -- current shareholders get $10B (or 97% of $10B, whatever). Market reaction is some combination of profitability concern / bankruptcy risk because Oracle is super leveraged and taking on even more debt. Maybe the AI hyperscalars will slow down spending in 2028.


Replies

donkers • today at 8:29 PM

It’s literally dilutive. Current shareholders now only own 97.5% of the equity instead of the 100% they owned previously.

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