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There are 2 broad classes of financial assets. VC money is almost always the other kind, not a loan. I would rather you had written something like, "Bluesky ha
by hollerith 2y ago
There are 2 broad classes of financial assets. VC money is almost always the other kind, not a loan.
I would rather you had written something like, "Bluesky has sold part of itself. If the leadership of Bluesky is not committed enough to Bluesky's making a profit, the owners of Bluesky can vote to have the leadership replaced. This sale makes it less likely that the owners will overlooking any laxness on the part of the leadership in pursuit of profit."
- phoe-krk 2y agoThere are two kinds assets of financial assets, but both of them work the same way - you pay back the investors or face the consequences, i.e. the loss of control over how the company functions. In other terms, it doesn't matter to the end user who exactly introduces the resulting enshittification - Bluesky's current leadership that doesn't want to lose control of the company, or Bluesky's future leadership that replaces the current one.
- wkat4242 2y agoWell you don't even have to pay them back in some cases. If your market value keeps increasing that's usually fine for them too. Most shareholders aren't in it for the dividend but are gambling on an upwards value. Of course what goes up can't go up forever. This is when the enshittification starts.