TamaraB
Question The Current Paradigm
Premium
join:2000-11-08
Brooklyn NYC
 ·Verizon Online DSL
| reply to hayabusa3303
Re: All i can say is WOW
said by hayabusa3303  :im really am amazed by how much these cable companies are in debt. ... I don't understand. Now, the only Cs I got in college was in Economics, but what ever happened to the notion of using revenue to pay your bills? Why is it that they, and almost every other big company have to amass such enormous debt just to stay afloat? 21 Billion in debt? I'll bet that's more than the company is worth! They must have been borrowing to pay stock holders!
So, if they go belly-up who pays? Well, if the banks to which they own the money to absorb the loss, then it's we the tax payers who will foot the bill -- it comes out of the bank "bailout money".
If that's the case, why not just nationalize them and turn them into the biggest Muni-ISP in the country?
Bob
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"If we believe absurdities, we shall commit atrocities." -- Voltaire
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hottboiinnc
ME
join:2003-10-15
Cleveland, OH
 ·Time Warner Cable
·buckeye cable
| The Gov't would have to BUY each company as it goes out. Like they did AIG. They'd have to buy the shares. Or take it fully over like they did Amtrak. But we see how well Amtrak has worked out.
I could just see what they could do with a nationwide ISP/Cable TV network.
Plus do you want all your information through a proxy to the NSA before it touches the 'net? |
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest
| reply to TamaraB
said by TamaraB :but what ever happened to the notion of using revenue to pay your bills? Why is it that they, and almost every other big company have to amass such enormous debt just to stay afloat? 21 Billion in debt? I'll bet that's more than the company is worth! They Borrow money to buy out competitors and smaller operations, and to expand QUICKLY.
There's only 2 ways to expand:
Route 1:
Slowly, steadily, surely. You use revenues reinvested in the company to steadily grow and expand into new areas. This is the old school way of doing things.
Route 2: You borrow money, (or issue stock) to generate a lot of cash and then buy up existing companies and take them over. This allows you to expand your company quickly, but it does amass debt. If you overpay, or you end up having to spend a lot of money later "Integrating" your purchased asset into your company, you may take a bath on the deal. Especially if the takeover and the resulting problems cause you to bleed customers.
So it's a gamble, you can grow fast, and if it works out well, you "Make money fast" and everyone's happy. However blow it, and you're left with an anchor of debt around your neck dragging you down. Welcome to Charter.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
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