TMT (Tech, Media & Telecom)
A growing streamer spends $10B of cash on content this year but amortizes only $8B. Why the gap, and what does it mean for earnings versus cash flow?
Model answer
The gap exists because a GROWING content library means today's cash spend funds titles whose expense will hit the P&L in future periods - cash out now, amortization later. So the income statement…
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