2024-04-08 22:04:00 ET
Summary
- Skillz, an online gaming company, is facing significant challenges and has been unable to achieve sustainable profitability.
- The company's revenues have declined by nearly 60% from their peak, and its user base is shrinking.
- Skillz is trading at a discount to its book value and has a sizable cash balance, but I don't see much evidence that shareholders will benefit from this situation.
At what point should a company simply wind up operations and liquidate? There comes a time when certain companies seemingly no longer have a realistic path to generating shareholder value. In such cases, the best course of affairs may simply be to close the operating business and return the remaining cash to shareholders....
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Skillz: Large Cash Position But Core Business Keeps Declining