Comment on How does delisting a game make/save money?

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dustyData@lemmy.world ⁨9⁩ ⁨months⁩ ago

Pretty much. The delist is presented as a big operating “loss” to tax authorities. An asset that they will no longer have and will no longer make them revenue. The only thing they are retaining is the copyright. This was their 2022 strategy.

But it is also about cost vs. revenue. If it cost X amount to keep a property in a streaming service (servers, programmers, bandwidth, etc.) But it brings in less than X in revenue, that revenue still has to pay a lot of passives (residuals, licensing, fees) and taxes. Then that property is a net loss for the company and other products have to pick up the slack to pay the full X costs. By delisting the whole company runs a financially healthier profit. They over spent and the most recent merger was left holding the bag of debts.

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