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AOL Plans to Sell or Close Bebo

bits.blogs.nytimes.com

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Re: AOL Plans to Sell or Close Bebo

#4
post #2

AOL confirm as being notorious for making bad bets.

I really can't believe how often these giant corporations throw hundreds of millions of dollars at companies they then shelve or sell at a loss just a few years later.

There's some accounting voodoo with capex that brings incentives into the whole process.

Re: AOL Plans to Sell or Close Bebo

#7

Earlier quoted context omitted.

I really can't believe how often these giant corporations throw hundreds of millions of dollars at companies they then shelve or sell at a loss just a few years later.

There's some accounting voodoo with capex that brings incentives into the whole process.

No they are just clueless, Bebo was purchased for cash.

Re: AOL Plans to Sell or Close Bebo

#8
post #7

Earlier quoted context omitted.

There's some accounting voodoo with capex that brings incentives into the whole process.

No they are just clueless, Bebo was purchased for cash.

Perhaps I'll rephrase: they use the accounting voodoo as an excuse to buy stuff they have no business acquiring, as their MBA textbooks told them about capex and operational leverage.