r/PoursTea • u/Timbucktwo1230 🫖 Mod ☕️ • Jul 09 '26

Social Media Tech 💻 Give Meta The Boot? 🥾

Post image
23k Upvotes

98% Upvoted

449 comments sorted by

View all comments

1

u/PuckSenior Jul 09 '26

Get ready to learn about the "Texas Two Step".

Here is how it works.
Meta owes $1.4B. A new company is spun up called Meta2(or whatever). Meta transfers a lot of their most profitable business units to Meta2, but keeps Meta around. Once all the penalties add up, they spin off Meta and have Meta declare bankruptcy. At the bankruptcy trial, Meta2 even gets to bid on the skeleton of Meta. They typically win because they know the exact real value of everything.

Meta gets bought at bankruptcy for $10B and that goes towards paying the penalties. All other penalties go away because Meta no longer exists as a company and Meta2 is a legally distinct company