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Phone Monitoring Startup Carrier iQ Goes Under, AT&T Buys Assets and Staff
- marshray 11y ago> As AT&T did not acquire the full company, we understand that it will not be liable for any outstanding litigation or settlements against CIQ. How is it possible to just acquire the assets but not its legal liabilities?
- maxerickson 11y agoThe legal entity and the assets it holds are separate things. So they just paid for what they wanted, and now the company has that cash (or whatever) instead of the assets. I guess in principle it isn't real different than if they had sold AT&T a car.
- marshray 11y agoIt seems like a big loophole to get out of existential legal or debt liability.
- maxerickson 11y agoThat's pretty much what corporations are for though. When something goes wrong the corporation folds and that's it (with some fussing around to give debtors and investors whatever money might be left). I'm assuming the assets sold at a fair price. If that is the case, it doesn't hurt the ability of the company to pay back the liabilities. If it isn't the case, it's headed in the direction of fraud.
- maxerickson 11y agoShould be creditors in the first paragraph parenthetical, not debtors.