Tesla Motors buying SolarCity - a potential deal in which one of the country's best-known tech billionaires will effectively transfer cash from one of his pockets to another - sounds nuts.
Until you consider that Elon Musk, who's the biggest shareholder in each company, said a few weeks ago that we're all probably living in a giant video game.
Before even getting into the logic of the deal — an electric car company acquiring a solar panel distributor — you have to get past the absurd complexity of it.
Musk is co-founder, CEO and chairman of Tesla. He's also the chairman of SolarCity, and a cousin of the company's CEO Lyndon Rive.
Musk owns 21 percent of Tesla and 22 percent of SolarCity, stakes worth $6 billion and $533 million respectively, based on the company's share prices after the bid announcement.
Adding an additional level of complication, Musk is also CEO of SpaceX, a company that's been valued at $12 billion for its efforts to privatize space travel. And SpaceX reportedly owns a chunk of SolarCity's debt.
In disclosing the proposal to buy SolarCity on Tuesday for as much as $2.8 billion, Tesla filed a letter it wrote to SolarCity on June 20, that starts: "Dear Lyndon." Given their closeness, you'd think Musk could've hand-delivered the note.
But even if we all exist in a simulation, as Musk suggested at the Code Conference this month, he still has to obey securities laws. So he sent a professionally drafted letter to offer to buy SolarCity for $26.50 to $28.50 per share, representing a premium of as much as 35 percent over Tuesday's close.