Re:John Carmack Leaves Meta
by JumpCrisscross on Saturday December 17, 2022 @01:24AM
(#34025365)
> as it comes after a (reverse) merger
The answer to almost every modern financial wizardry is M&A. Sure, a DCF yields the theoretical value of a stock’s stream of cash flow. But in reality, M&A secures that lower bound. Yes, an efficient firm may reduce headcount willingly. But in reality, M&A provides the culture shock.
Laying off redundant people after a merger is basically part of the plan, and it’s more akin to cutting off the bits that don’t fit in the new org (they’re bringing in 500 Next people at the same time), than “slimming down” in the sense of making the same org leaner and more efficient.
Or if we take that definition, car manufacturers merging and getting rid of thousands of workers as a cost saving measure would also count as successful slimming downs, and we’d have many more example of it. That would work as well.