7 ms·
When you buy a company, you don't buy just the assets. You also acquire the liabilities, which include debt, warranties and support contracts.
by enraged_camel 10y ago
When you buy a company, you don't buy just the assets. You also acquire the liabilities, which include debt, warranties and support contracts.
- maxerickson 10y agoWhat if you instead of buying the company you buy the assets? Why would anyone buy a company with negative value? Once the operations have failed the various creditors likely benefit from reasonably priced sales the assets.
- detaro 10y agoWhich is why they did not buy the company. The company is going bankrupt and sold IP to recover money to pay some of the debts with. If you did that to a healthy company that might be fraudulent, but when the company is going under either way it is probably not.
- hedora 10y agoAgreed, but I didn't see anything about court approval for this deal. If a neutral third party signed off on it being the best deal (for the creditors and customers) possible, then fine.
- Tinyyy 10y agoClearly that did not happen, because they stopped support for warranties. So only a moral, not factual, argument could work here.
- htrp 10y agoUnless you buy the company in liquidation (chapter 7 style) which is more and more what this seems like.