4 ms·
You can stiff shareholders. They know the risk. They are getting near zero in all scenarios including buyout and liquidation. Buyout they may get some cents
by adrr 4y ago
You can stiff shareholders. They know the risk. They are getting near zero in all scenarios including buyout and liquidation. Buyout they may get some cents on the dollar and liquidation they get zero.
- LegitShady 4y agoThey will immediately be sued by shareholders. So you can stiff them and then play with them in court and see if that's cheaper. all for what? taking billions in someone else's debt? Whats the upside?
- adrr 4y agoIf they sue and block the acquisition. The company will go bankrupt and get liquidated and they get zero.
- LegitShady 4y agozero percent of some other insolvent company's liabilities? That's the right amount of someone else's liabilities to volunteer to take. Again what's the upside of taking an insolvent exchange when you already are the default competition to that exchange? Why pay money to fund the competitor's failure? if binance assumes $6b in liabilities for no gain they'll be acting against their shareholders best interest and be on the way to bankruptcy anyways. No one here can say what the upside of assuming all those liabilities is. Aside from 'goodwill' and 'the entire crypto market will crash', what actual reason is there for binance to buy an insolvent exchange?