Re:Snap lays off 20% of employees
by twoodfin on Wednesday August 31, 2022 @03:13PM
(#32666977)
Presumably they’re going to write off the cost of the acquisition for tax purposes. I suppose that doesn’t preclude selling the assets like the brand and the software, but since it looks like they’re in a hurry to reach profitability, the certainty of booking tens of millions of future tax offsets must have seemed appealing.
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Re:Snap lays off 20% of employees
by onlyrealcuzzo on Wednesday August 31, 2022 @03:29PM
(#32667156)
If you've never made any money - how much are you really thinking about taxes?
That’s the point: They’re clearly attempting a shift from growth to profitability. Those future profits look that much better to investors if they have (say) $50M in tax offsets already banked.
You know what looks better than $50M in tax offsets? $500M in cash