Beamer wrote on Jul 11, 2012, 11:33:
ASeven wrote on Jul 11, 2012, 11:02:
liability.
This word does not mean what you think it means.
In general, though, Vivendi is a company that's having significant issues. Why are they seeking to offload Activision?
1) It's not core to their business. Yes, it makes money, but they're being pushed to focus on their core, which is not video games. This means offloading businesses that are distractions, even if profitable ones. Markets often push for this, which can have bad consequences, as offloading even a minimally profitable business, or minimally unprofitable one, can have huge repercussions
2) Activision, being profitable, shoudl be one of the easiest for them to offload, as there are people out there that want it
3) How do you get rid of liabilities? Paying them. How do you pay them without incurring new liabilities? Cash. How do you get cash? Selling something.
Please stop using "liability" if you don't understand the concept.
This is ironic because you're the one who said I didn't know what due process meant on the Kim Dotcom case and yet the courts are now all against the US DOJ because they didn't obey due process like I said and predicted, so who was the one who didn't know what due process means? Thats right, you. Then again you've proved time and again you don't know much of anything when you turn into apologist mode.
Anyway, liabilities mean that but they also mean exactly what I said. And having read the Moody advisory and how they classify the video game industry, "A shifting market for video games may limit Activision’s attraction to buyers. ", a phrase that pretty much is financial speak for saying the videogame industry is no longer attractive to investors and which Beamer here has deftly ignored lest his argument fell and he would be unable to rant to defend her precious industry heading for the crash, I can safely say Beamer that you really have no idea of the picture Moody painted. And yes, they do consider the industry a liability not only in your financial definition but in the usual definition of Do Not Invest.