If you owe so much money to others that you can’t even afford to pay the interest accrued on the loan, and there are no promises of large cash influxes in the near future, no one will loan you the money to pay your monthly interest expense, let alone pay down the principal you owe.
Assume you have a $30,000 credit card debt. The interest rate is 17%, so you are required to pay $418.89 a month – just in interest. In this example, using the numbers/income that apply to Getty’s situation, you would only have $52.36 of your income you can use to pay down your debt, thus you have NO WAY of paying off a mounting debt when your monthly increase in debt is 8 times what you have to pay down the debt.I can’t make it more simple than that.
"EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions."
Getty could utilize their platform that is already ingrained into the desktops and web-browser bookmarks of publishing entities around the world, and serve as a content platform only. Yet, companies like HBO, which started as a re-seller of movies moved successfully into producing content, and more recently, Netflix did the same thing, again, producing content. Getty is clearly moving away from that model.
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