debt should take away from net worth

[WilliamMGary]

Right now there's an AI company whose 6 billion in debt and constantly issuing shares. Its too expensive to acquire the company and then pay off their debt, if debt took away from the net worth of the company it would make net worth actually reflect the value of the company and the cost of acquiring the company would be more reasonable.

If I just want to buy the company for their media firms I shouldn't have to pay billions in stock + assume their multi-billion dollar debt.

[David]

Actually debt is already taken away from net worth in all versions of Capitalism.

[WilliamMGary]

Actually debt is already taken away from net worth in all versions of Capitalism.

I'm playing the latest version (yeah, really I am) and I think I didn't explain myself well enough. In my current game my company has a Net Worth of 39,751,792 but has total loans of 29,196,759.

Net worth should be Total Assets - Debt and that net worth should reflect the stock price of the company.

My company net worth should be 10,555,033.

I think having all companies "Net Worth" (hence stock price) reflect they're actual real value will results in more M&A activities and more informed investors.

[counting]

I think you are confusing Assets with Net worth.

If your company has a net worth of 39,751,792 and total loans of 29,196,759, then your assets should be their combine of about 69 million. Check your balance sheet in corporate details. Your net worth should equal your shareholder equity, which already taken out liabilities (loan).

P.S. I do sometimes wonder why they are not exactly match, always a tiny difference, perhaps it has to do with inflation setting?