GadgetRick said:Ok, you're still talking 3 and a half YEARS! Have you NOT seen what this country just went through??? Most investors are NOT interested in spending this amount of money for so long before (maybe) receiving a return. This is the problem. You (and many others) are arguing with people like myself (and others) here but you don't seem to understand we're not saying they're going under. We're looking at the facts we do know and saying, "It's gonna be tough to survive."
Honestly, do you know anything abou venture capitalism? Seriously. The AVERAGE time it takes a start-up business to break even is 3 years... Also, you talk about "what this country just went through." The market has been expanding now for about 2.5 years straight. The DOW and the NASDAQ are up about 35% in that time period, which means capital and investors ARE buying into the market.
Now, as far as Voom operating at a huge loss, you need to consider this: Most of the "loss money" has already been spent... The start-up costs are enormous, and they've already been spent - they reflect in the budget now because they have been amortized over several years. However, whether or not Voom is in business, it needs to pay for all of those costs unless it files for bankruptcy protection. Secondly, their are ADDITIONAL costs incurred when closing down (e.g. canceling vendor contracts, legal paperwork, severance pay, collection costs to reclaim leased assets, etc.)
So, since it is going to cost them money anyway, doesn't it make sense that they make a full-court press to try to turn a profit, or at least get some return for their losses. You need to remember that it may cost $75 million to run Voom right now, but it will take hundreds of millions to shut Voom down.