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Comment on Mass layoffs expected at EA as the now-private publisher reportedly tells its new debt masters that it's going to cut $700 million in annual costs

buddascrayon@lemmy.world ⁨1⁩ ⁨week⁩ ago

Private Equity 101, “buy” a business using borrowed money, put all the debt on the company you “bought”, slash costs, sell off assets, have the company declare bankruptcy and take all the debt with it, rince and repeat… Profit.

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muusemuuse@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
Nobody has ever been able to explain to me why this is legal

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- buddascrayon@lemmy.world ⁨1⁩ ⁨week⁩ ago
  And as if that wasn’t an insult to the middle class, people like Elon Musk and Jeff Bezos can borrow against their stock holdings as if they were real assets, yet never be taxed on the value. But if you borrow against the value of your house, YOU get taxed on that value.
  
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- btsax@reddthat.com ⁨1⁩ ⁨week⁩ ago
  It makes rich people richer
  
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  - muusemuuse@sh.itjust.works ⁨1⁩ ⁨week⁩ ago
    It doesn’t though it’s just another way of lying about the math. Line goes up because it’s doesn’t actually represent what it’s supposed to.
    
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mirshafie@europe.pub ⁨1⁩ ⁨week⁩ ago
Well when you say it like that it just sounds dumb.

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