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Comment by cyanydeez

5 hours ago

yeah, their shops arnt sized to do much more than UPS style package movement.

I dont see it as a good value, but it's the only thing I see as a synergy. Otherwise it's just more garbage capitalism.

> garbage capitalism.

How is this defined?

  • A few things come to mind:

    - SPAC IPOs that dodge standard disclosure requirements and worsen information asymmetry. See WeWork.

    - Board positions filled with CEO loyalists instead of independent directors. See OpenAI firing Altman before Microsoft reinstated him.

    - Management taking seemingly arbitrary decisions that turn out to be directly linked to their own compensation. SpaceX ordering a bunch of Teslas, or merging with a distressed asset (xAI). See above point on loyalist boards.

    - The very concept of leveraged buyouts where financiers borrow money to buy a company, then put the burden on repayment on the company AND pay themselves hefty management fees. This inevitably leads to layoffs and a rapid decline in product/service quality while the company is scrapped for parts.

  • Slumlord owners of the network effect monopolies innovating ever lower investment in innovation and upkeep with ever higher increases in rent extraction, with a few nipple tassles slapped on the side to entice retail investor hype cycles.