• lemmyseizethemeans@lemmygrad.ml
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    2 days ago

    Leveraged Buy Out used to be called Hostile Takeovers back in the day. They don’t got the money to perform the transaction, they borrow based on gasoline fiction of anticipated returns eventually. It’s all insane. A collective hallucination where line go up because computer model (which is black box or calculation based on other opaque sources of revenue) says the money will like magic appear

    It’s Enron all the way down

    • moody@lemmings.world
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      2 days ago

      A leveraged buyout and a hostile takeover are two completely different things.

      A hostile takeover is when the buyers appeal to the shareholders over the wishes of the board. It’s when the company doesn’t want to merge, but gets bought out anyway.

      The term leveraged buyout only indicates that the money is mostly borrowed.

      The case could be that a hostile takeover is also a leveraged buyout, but the EA buyout is not hostile.