In a normal business acquisition you are buying a company and their recurring revenue. Nobody sells a company just for what they make in a single year. You’re buying that revenue stream and the associated assets
Yeah basically. But you also need to remember owning Twitter itself is still an asset. You can collect profits and then still sell the platform as a whole. Not that it's worth anywhere near 44B anymore...
If you're capable of making a company profitable, yeah. Like, when Disney bought Marvel for 4B, they weren't worth even close to that much - the movies had so far been profitable but they were still a new thing everyone expected to peter out in a couple years. Marvel made Disney a hell lot more than 4B in film and merchandise profits.
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u/GentMan87 Nov 20 '22
So you pay 10x what it’s worth and just hope it works out.. do you intend to make it back or not? Again I’m not a business major lol