00:00Look, it's easy to bash on companies like Shopee and call their founders greedy, but that's not really fair.
00:07It's no secret that they're trying to sell the company, and anyone who invests in them knows this.
00:18In fact, most investors are probably rooting for them to lose money.
00:23The more money they lose, the cheaper the acquisition will be.
00:27So ultimately, Shopee has to balance two things.
00:31They have to keep losing money to make the acquisition cheap, but they also need to stay afloat.
00:38Now given the current situation, I don't think Shopee will survive for much longer.
00:44Most tech companies are pulling back on advertising, and Shopee is no exception.
00:50In fact, they've cut their marketing budget by 50%.
00:54On top of that, inflation is hitting consumers hard, and they're pulling back on spending.
01:04As a result, Shopee's sales are down 25%.
01:08All in all, I don't think Shopee will last another two years.
01:12In the meantime, they'll probably try to strike a deal with a local telco or private equity firm.
01:18But after that, it's game over, and that's why.
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