• A1kmm@lemmy.amxl.com
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    5 months ago

    they have ran out of VC money

    You know YouTube is owned by Google, not VC firms right?

    Big companies sometimes keep a division / subsidiary less profitable for a time for a strategic reason, and then tighten the screws.

    They generally only do this if they believe it will eventually be profitable over the long term (or support another part of the strategy so it is profitable overall). Otherwise they would have sold / shut it down earlier - the plan is always going to be to profitable.

    However, while an unprofitable business always means either a plan to tighten screws, or to sell it / shut it down, tightening screws doesn’t mean it is unprofitable. They always want to be more profitable, even if they already are.