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Comment by CodingJeebus

4 days ago

Not to mention that a government ownership stake also incentivizes a bailout if this all goes bust.

A 5% stake in an overvalued private company without public financials and with an indeterminate timeline to profitability is a bailout. Shareholders cash out while the taxpayer is stuck with the bill.

  • Is the government buying their stake or being given a stake? In the second scenario there's no bagholding.

With the way they're treading on, I'd not be surprised if a bailout happens in the next decade.