4 ms·
> That doesn't mean Oath is actually worth only $200 million in cash — Oath said it still has about $5 billion of real assets remaining. On the other hand, Veri
by drieddust 8y ago
> That doesn't mean Oath is actually worth only $200 million in cash — Oath said it still has about $5 billion of real assets remaining. On the other hand, Verizon calculated that, after taxes, the write-down would knock $4.5 billion in real money off the company's income in the fourth quarter, which ends Dec. 31.
I smell financial wizardary.
- mywittyname 8y agoThe value of Yahoo is the $5B tax write-off it buys us.
- drieddust 8y agoDoesn't make sense. I don't have detailed understanding on finances but Tax writeoff should be beneficial when you have a valuable assets still in use which can be written off in book. In this case they have spend $5B only to write if off the following year. Something else is going on. I don't think these guys are so stupid.
- dredmorbius 8y agoIf part of the deal was in stock, that stock has depreciated. Stock is something a company can create. Cash is something it needs to acquire. Stock swap, write-off, devalued stock. No net cash position change. Asset-liability shift may be worth the market-cap writedown.