[mathattack]

If you’re profitable and can pay it back, it’s better than equity.

If there’s any financial risk then it may not be worth the potential loss of control.

[adam_arthur]

Would depend on the yield on debt vs yield on equity (factoring in earnings growth rate)

If your company trades at 100x sales you should probably sell the equity.

[mathattack]

It’s not just yield. Its debt gets paid first. And if you miss the interest payments the debt holders get the company.

[spwa4]

If you mean that taking out any kind of debt is fundamentally a bet that whatever is being put up as collateral will grow faster than the interest rate? Because if it doesn't the risk that suddenly debt holders control you grows by a lot. Yes, absolutely.

So, applied to GOOG, Alphabet Management is betting they will grow more than 4.5% per year at least until 2030.

There is also some weirdness, like Alphabet making a 500 million USD bet short term USD interest rates will be lower than 4% over the 2025-2028 period.