• BarneyPiccolo@lemmy.today
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    10 days ago

    The Ellison’s had to go like $89 billion into debt to make this merger,

    Not really. They have the money. It’s not like they borrowed it from the bank, and now they have to make a go of this new business, or the family goes bankrupt, and the kids can’t go to college. They’ve probably already replaced the money they spent.

    You’re thinking like a regular person. It’s not like they really spent money on anything. They made a deal to acquire an enormous revenue stream. Is it really spending money, when you convert a few billion dollars into trillions of dollars until the end of time?

    • howrar@lemmy.ca
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      9 days ago

      In regular people terms, it’s like if I saved up $100 and spent it to buy shares of an index fund. Yeah, it’s going to take a while to make back the money I spent, but those $100 didn’t just disappear. I can sell those shares and get back approximately what I originally spent on it.