Gurley identifies Meta agreeing to cover debt failure without owning the debt as classic off-balance-sheet financing.
“Meta agreed to pay for the failure of debt on a facility where they don't own the debt. You know? And to me, that's classic off balance sheet financing.”
Gurley describes Meta's Scale AI acquisition structure: 49% stake for $15B at $30B valuation to avoid regulatory scrutiny.
“Meta has done this interesting structured deal, they're buying 49% of the company, they're paying a $30,000,000,000 valuation so they're paying effectively 15,000,000,000, they're avoiding regulatory scrutiny, the CEO of scale is going to help lead efforts at Meta.”
Gurley believes Facebook's stock would double if they shut down VR, which costs $5-10 billion annually.
“Wall Street's on my side on this one. I think if they shut down the VR effort, not only will the profitability would soar because they're spending real money, like 5 to 10,000,000,000 a”