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UnderpantsWeevil ,
@UnderpantsWeevil@lemmy.world avatar

Why would the forced sale of a product have an impact on the value?

I have a shelf full of cupcakes. They each cost me $1 to make. I would like to generate a 20% profit, so I sell them for $1.20/ea.

Then the government passes the "UnderpantsWeevil Can't Sell Cupcakes In the US Act of 2024", effective in one minute. A financial tycoon from American Cupcake Corp comes by my shop and says "I'll pay you $.10 for those cupcakes, which will be worthless to you in the next 59 seconds." He intended to buy them from me and sell them at his store, across the street, for $1.30/ea.

He's not under any time constraint, but I am. So if I can't move the balance of my cupcakes in a minute, they become worthless to me.

Logically, I should sell any cupcakes I can't move off the shelf in a minute to American Cupcake Corp, even at this depressed asking price.

If anything, the fact that it’s being forced to “sell” should make the existing social media companies froth at the mouth.

Why would any social media company bid the real value of the property when the real value falls to zero in nine months?

And - let us assume, hypothetically, that these American tech companies have a history of operating as a cartel - why would they not coordinate their bids to guarantee the smallest possible auction price?

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