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Why do they call this fintech? Isn’t this essentially a reworked trust?
by 52-6F-62 3y ago
Why do they call this fintech?
Isn’t this essentially a reworked trust?
- Kiro 3y agoThe irony that "reworked trust" is even more of a nonsense word.
- 52-6F-62 3y agoIndeed…
- op00to 3y agoBecause the idea is to sell fintech products to the acquired businesses.
- bornfreddy 3y agoThat sounds like a cherry on top to me. I mean, considering the cost of the business that they paid for, fintech expenses shiuld be negligible. Otherwise it sounds like a great business - buy successful businesses without successors, shape them up, motivate employees and reap the benefits, long term. Win-win-win for everyone involved and society too.
- foobarian 3y agoIt's like any acquisition, you don't let the acquired shop keep running workday if the main company is running base camp. It makes sense to consolidate.
- asu_thomas 3y agoOnce they lose control by selling 80% to the employees, they no longer have that power though, right?
- sangnoir 3y ago> fintech expenses shiuld be negligible And that's the rub - it'd be more profitable to thr mothership if the fintech expenses were not negligible over 20 years.
- bornfreddy 3y agoDo you think so? Their profits are their mothership's profits, so any expenses are, too. It's like putting from one wallet to another and harming the businesses (assuming their fintech solution is not optimal) along the way. I don't get it, but from the article I don't think this is what is happening anyway. It wouldn't make sense either.
- sangnoir 3y ago> It's like putting from one wallet to another and harming the businesses Sort of, but they'll be pulling money from a joint wallet that's 80% owned by other people. I expect even if the workers gain majority ownership, they will have no control - so the fintech service contracts will likely outlive the businesses.
- skeeter2020 3y agobecause the latter has a single digit multiplier and the former double or triple digit.