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Joined 1 year ago
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Cake day: June 7th, 2023

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  • Maybe, though if you think about it, the idea is basically:
    Hey, we borrowed all this money to buy up lots of companies. But rather than pay it back ourselves, we are going to put all of that debt on this one company we also bought (probably with some of that debt), because thay actually make money.

    It’s a shell game to allow Embracer to walk away with all the profits and never have to pay their investors back. If Asmodee manages to pay off the debt, that’s nice for them. Other than the fact that they will be hamstrung by servicing that debt, rather than re-investing in the company. If Asmodee folds and gets auctioned off in Chapter 7, that ends up having no material effect on the leadership of Embracer who made the decision to take on all that debt. Either way, Embracer is jettisoning all responsibility for the choices the management of Embrace made.

    This sort of leveraged debt buyout, loot the company, then jettison the debt tactic has been used over and over to destroy otherwise profitable companies in the name of short term profit for vulture capitalists.



  • While Chism may be a worthless leech, he isn’t completely wrong. Valve’s ownership of Steam does put it in a privileged position, which could be abused in a lot of anti-competitive ways. The fact that it isn’t doing that is really only because GabeN isn’t the same type of leech which Chism is. He’s what a lot of people seem to want, a benevolent dictator. That said, when he finally kicks the bucket, or gets tired and sells the company, the future direction of Steam would be an open question. There may be a very good argument for Valve to be put under the microscope of the FTC for possible anti-trust breakup.