Who wants to be a Billionaire?

[Kenazo]

Originally posted by: Grasshopper27

Originally posted by: chiwawa626

Originally posted by: rival
ha, the wb, what a joke

Do they even have 500,000,000 just incase anyone gets to the halfway mark?

Yes, they do. WB and Pepsi both have billions and billions of dollars in cash, short term investments, and credit.

In any case, that isn't what they do for this sort of thing. Instead, they take out an insurance contract against the show, they probably will have to pay 5% of the possible winnings, or $50 Million. A major insurance company will then underwrite the prize. If someone wins, it comes from the insurance company, not the WB or Pepsi. The downside is that they will have to pay out the $50 Million no matter what.

There was a contest for a billion dollars on the Internet around two years ago that worked this way, the sponsors of that contest had to pay $75 Million for the insurance contract. No one won of course because the odds of winning were 1 in 1.2 Billion.

Hopper

Yup that's exactly how it works.

 

[CPA]

I'd like to know what companies are going to be ponying up this 1 Billion, because for accounting purposes it has to be exposed as a liability. Then you bet your bottom dollar that they are going to want to insure this, so what insurance company is going to put out a risk policy on this large of an amount. then if someone does win it, will the companies actually have the cash to pay it?

 

[MrDudeMan]

id be happy with .01% of that which is 100 grand

 

[LH]

Contest for a billion

The title of CNNMoneys article is misleading. Its not going to be ANYTHING LIKE Who Wants to be a Millionaire. Read the yahoo article

Details of the game were still sketchy over the weekend, although insiders said contestants will face off in a game of nerve and "chicken."

 

[cliftonite]

Originally posted by: Hayabusarider

Originally posted by: N8Magic

Originally posted by: Hayabusarider

Originally posted by: N8Magic I want on that show! :Q

For a billion you can bet you nor anyone else is going to win.

If you can't beat the odds, then cheat.

Kobayashi Maru?

Nice only fellow trekkies would understand

 

[silent tone]

Originally posted by: CPA
I'd like to know what companies are going to be ponying up this 1 Billion, because for accounting purposes it has to be exposed as a liability. Then you bet your bottom dollar that they are going to want to insure this, so what insurance company is going to put out a risk policy on this large of an amount. then if someone does win it, will the companies actually have the cash to pay it?

Read more of the thread.
Besides, companies invest billions all the time that don't always pay off. How much do you think Boeing lost when Lockheed won the JSF contract?

 

[m2kewl]

start memorizing the library of congress now; and get ready for the hardest f****** questions mankind will be forced to answer :Q

ps: if i get in AND if i win, i want the prize in dollar bills...i'll piss them off

 

[Grasshopper27]

Originally posted by: CPA
I'd like to know what companies are going to be ponying up this 1 Billion, because for accounting purposes it has to be exposed as a liability. Then you bet your bottom dollar that they are going to want to insure this, so what insurance company is going to put out a risk policy on this large of an amount. then if someone does win it, will the companies actually have the cash to pay it?

9/11 cost over $50 Billion and insurance has been able to pay for it and still survive.

The key to making this work is re-insurance, selling liabilities to other companies to spread the risk. This is where Warren Buffet made most of his money.

The worldwide insurance business has over $500 Billion in reserves to cover all sorts of things. The risks are spread around well enough that only a nuclear attack could ruin them, and those are excluded anyway.

If a nuclear bomb were set off, it would be the federal government that would step in and start rebuilding anyway, not insurance companies.

Hopper

 

[Grasshopper27]

Originally posted by: LH
Contest for a billion

The title of CNNMoneys article is misleading. Its not going to be ANYTHING LIKE Who Wants to be a Millionaire. Read the yahoo article

That's true, but take a look at this quote:

There's no guarantee that anyone will win $1 billion. But just in case, Pepsi -- which is apparently putting up the money -- hopes to secure some hefty insurance. The soft drink company is talking to a number of companies, including Lloyds of London, about insuring the show against a possible winner.

What did I not say just a few posts up.

Hopper

 

[Grasshopper27]

 

[coolVariable]

Me want!
Where do I sign up?

 

[dighn]

 

[Sid59]

that's alot of money, 1'000'000'000

 

[DanTMWTMP]

no freakin way man..i mean 50mill yeah..but 1 bil!? sheeeeeesh....well, i wouldn't mind being on that show...i mean being 1 bil...getting only 5 dumb questions right means getting at leats 1 mil right?...

 

[ElFenix]

*raises hand*