this post was submitted on 16 Feb 2024
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Privately-owned companies with no ties to venture capitalists are just plain better than corpos that worry too much about "line go up".
Facts.
But what does it mean for the studio if line goes down? They still need to worry about if their team will be able to be paid.
You can have deep wells if cash if your profit doesn't go to shareholders. This can help sustain your team when times are tough.
You don't need to pay dividends to shareholders if it isn't in the companies best interest. I don't see how simply being publicly traded means you can't hold a cash reserve
Yeah, most public companies hold big cash reserves. Its part of flexibility and long term growth, and the ability to weather downturns and be able to take advantage of opportunities.
Not everything is a rush to the bottom, it's more of a middle ground. Not saying it won't end up there, but like everything, it's not so black and white.