5 ms·
PE's usually try rebranding and introducing new product lines to try to spiff up a distressed property. So far that part of the process is not going that well.
by Finnucane 4y ago
PE's usually try rebranding and introducing new product lines to try to spiff up a distressed property. So far that part of the process is not going that well.
Also, there's not a lot of assets that can be sold off to raise funds. Often LBO targets are seen as worth more in parts than whole, but that's not really the case here.
- spindle 4y agoI believe the main point is the assets (about which I agree with you). The PE selloff playbook works when the investor is ruthless enough to both (a) load the company with debt and (b) sell off assets that were previously (they believe) not fully valued into the company's share price, like buildings owned by stores. While Twitter now has significant new debt, it's a small proportion of the purchase price, so there are still tens of billions of dollars that need to be recouped. And Twitter's ONE major asset is its goodwill/entrenchment ... which I'm sure is worth a lot, but which was already priced in to the share price.
- cinntaile 4y agoWhat part of Twitter can you spin-off anyway? There is only Twitter, no?