3 ms·
Epic owning Bandcamp never made sense. Getting Bandcamp off the books is likely to make the business look better to investors.
by lucasgonze 3y ago
Epic owning Bandcamp never made sense.
Getting Bandcamp off the books is likely to make the business look better to investors.
- samtheprogram 3y agoBandcamp is profitable. How would selling at what's likely a loss from their purchase price going to look good to investors?
- bensecure 3y agoIf they paid more for it than its worth, than they lost money the instant they bought it. If they sold it to a company that thought it could increase the value of bandcamp by owning it, then they might have gotten more for it than it was worth when they owned it, hence increasing their own value (or at least making a valuation which was previously potential concrete).
- bombcar 3y agoInvestors like to see a company buying up tangentially related businesses, it's good for business! Investors like to see a company divest themselves of non-core-competency sections of its portfolio, it's good for business! Investors are sheep.
- deleted 3y ago[deleted]
- lucasgonze 3y agoI'm not an accountant, but I know enough to have a sense of much "creativity" is possible. The purchase price might be in the past, while costs are ongoing. Yes there would be a markdown from purchase to sale, but that's a different line item from the annual run rate.