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Wall Street Banks Prepare to Sell Billions of Dollars of X Loans (www.wsj.com)

submitted 5 days ago by [email protected] to c/technology

53 comments fedilink hide all child comments

Mirror: https://archive.is/2025.01.24-212950/https://www.wsj.com/finance/banking/wall-street-banks-prepare-to-sell-billions-of-dollars-of-x-loans-c609beb1

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[–] [email protected] 6 points 5 days ago* (last edited 4 days ago) (2 children)

But what could there be to liquidate? Server racks? They don't even own the offices, it's all rented.

[–] clutchtwopointzero 2 points 3 days ago

Right. There aren't assets there to take and sell. Offices are rented. Equipment depreciates really fast as technology moves on. IP rights are not worth that much since there are many alternatives and some technologies they developed are unique to their own tech stack, and the trademarks are radioactive garbage.

[–] [email protected] 7 points 5 days ago (1 children)

Liquidators go through everything. Five toilet rolls in what was an 8-pack? Liquidate it.

IIRC, bankruptcy puts creditors in order, with employees getting whatever pay they're owed first in line, then debtors, and whatever might be left goes to investors. When you paid 5 or 10 cents on the dollar, you don't have to get much back for the deal to be profitable.

[–] [email protected] 4 points 4 days ago (1 children)

I think you’re missing the point. There are no physical assets. There is users and engagement. That can be used to push a narrative or to sell advertising. As users leave, neither works and there is nothing to sell.

[–] [email protected] 0 points 4 days ago (1 children)

There are physical assets, though. Hopefully enough to pay employees, and possibly enough for this deal to be profitable. It's a risk, but not a crazy one.

[–] [email protected] 2 points 3 days ago

Yes, there are, but minimal physical assets. That's the point. They likely aren't even enough to pay employees.