Reply to post: Re: Easy choice Elon

Elon Musk issues ultimatum to Twitter staff: Go hardcore or go home

Red Ted
FAIL

Re: Easy choice Elon

take it public again (this time saddled with the debt he used to buy it)

This is the common issue with taking a company private. The sequence seems to go something like this:

1. Buy the company with a large loan to finance it.

2. Remove non-revenue parts of the business (typically the new product/feature development)

3. For a while the company has less costs but the same income so makes a greater profit

4. Float the company again with the "new improved" profits.

5. The public company is saddled with the repayment of the debt raised to take it private

6. The lack of new products/features (because new product/feature development stopped some time ago) means the income declines over time until the company can't afford to repay loan, and declares bankruptcy.

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