7 ms·

Presumably whoever is doing the acquisition would look at the financial numbers in addition to the subscriber numbers? Then they'll notice a discrepancy between

• cjkaminski 8d ago
  The issue is that "whoever" isn't a single homogeneous entity. I would presume that someone in the organization spotted the discrepancy. Having worked closely with (and sometimes for) large corporations, I cannot presume that C-Suite decision makers were sufficiently aware of the issue. Or perhaps they didn't weigh the issue properly. Or maybe they were consumed by a desire to complete the merger, no matter what. There are quite a few ways this could have gone, internally, and still arrived at this place.
  • thesuitonym 8d ago
    Anecdotally, I've worked at places where the due diligence process wasn't so much about determining if a course of action is good, but justifying a decision that was already made. If the subscriber count and income don't mesh, just use whichever number makes the merger look better.
• skywhopper 8d ago
  You’d think, wouldn’t you? But there are so many promotions and discounts and bundles going on that it’s never a linear relationship. So no one would be able to easily tell the numbers were diverging for at least a few quarters. And as long as they are both headed up, no one actually cares anyway. But if you wanted to juice the growth rate or slow the churn rate just a bit to look better or hit some target that you were just shy of, it’d be easy enough to add a “bug” to forget to bill some certain percentage of trial accounts. Or maybe they just suck at the coding that handles trial accounts. As rapidly as this stuff was rolled out, and as late as the decisions about actual promotions probably get made, I’d be surprised if it wasn’t buggy.
  • mixdup 8d ago
    Yeah, there is no way to back out consumers vs. revenue at basically any big company. They all report "ARPU" or average revenue per user, because there is always a spectrum of pricing, almost never a single price. Between bundle pricing with partners, promo pricing offered for new customers, customers on old plans that haven't upgraded or updates, depending on the type of service and how they manage it there can be hundreds of price points in play for any given customer That isn't to say there's no way to audit for this kind of situation, they could definitely report out what every single customer is paying and just find the ones that = zero
• WarmWash 8d ago
  JPMorgan bought Frank in 2021 for $175M, and the companies databases where all very obviously procedurally generated.
  • no-name-here 7d ago
    With the idea being that, like as happened with Frank, multiple of the top-most members Paramount’s leadership will end up in jail for a number of years, at least once there is a neutral admin? It looks like each of Frank’s leaders were sentenced to about 7.5 years in prison each on the 175m deal - do sentence generally scale?
• teeray 8d ago
  [flagged]
  • denderson 8d ago
    Thanks…”Claude”