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I do, in fact, remember the 80s. And the point of asset stripping in that era was that the targets were generally companies with good fundamentals in parts, whi
by rodgerd 4y ago
I do, in fact, remember the 80s. And the point of asset stripping in that era was that the targets were generally companies with good fundamentals in parts, which had either merged or grown in ways that resulted in those good components propping up losing components, which was what allowed the asset strippers to make their money via the process described. The successful asset strippers also had generally done a lot of analysis before they made their aquisition.
What detailed analysis did Musk do? A bunch of DMs with Jason Calcinis pulling numbers out of his arse? What's the core profitable business that Twitter has that is encumbered by unprofitable components?
If I wanted to look at a case for an asset stripping target in social media, I'd probably look at something more like Facebook, where there's a case that unrolling their rats' nest of aquisitions like WhatsApp, Instagram, and Oculus could result in some valuable spin-offs: for example, if WhatsApp went back to a stripped-down standalone company with a small fee it would probably be quite profitable, as it had been before being Facebooked. But Twitter is twitter. That's it.
The only thing I see with this is an echo of when this site's owners sacked Musk for fucking up PayPal with deranged, incoherent edicts. The difference is that no-one can sack Musk to save Twitter from him.
- rsj_hn 4y agoYes, a lot of people remember the asset stripping wave in the 1980s, but not the merger wave of the 1960s. At that time, it was fashionable to assume that the core expertise of "management" could be transferred to pretty much any field, and so you had these bizarre conglomerations of businesses. It turned out that "management" wasn't so transferable, resulting in one big company having a few profitable ventures that were subsidizing unprofitable ventures, and the 1980s saw a lot of those conglomerates split apart (and they probably took it too far in the other direction). At some point, we need a history of post-war corporate capitalism, because it sure seems like it is driven by one fad piled atop another fad.