I subscribe to Spaceship's emails as I like to keep track of their investment decisions (buy and sells) over a period of time. Last week they sold Superloop - who I like to keep an eye on due to Aussie Broadband being my largest holding and Superloop being competitors. 

Spaceship sold Superloop, noting the following: 

'Superloop is another company that has been on our watchlist, as we believe it continues to underperform in the industry. Given businesses have been forced to digitalise due to the working-from-home trend, we’ve been surprised Superloop has had trouble finding buyers.

To help solve this problem, Superloop acquired Exetel in August 2021, and this sealed the “sell” deal for us, as we believe buying a company to get customers and traction isn’t a positive sign for the business.'

END

When I looked at ABB initially, I looked at Superloop. The companies have similarities, but the issue with Superloop is that they have demonstrated an ability to destroy shareholder value over a 5-year period and are still no closer to profitability. I am unsure why Spaceship initially bought Superloop, but their reason to sell highlights my current thoughts on the business. I think their decision to acquire Exetel was a desperate one, driven by struggling membership numbers and issues with cash flow.