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I have the inverse story; factory workers picketing outside. First day the owner of the company walks up to them and explains: this company is worth $X. The terrain (land) it occupies is worth $10X. Please get back to work.

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That signals an extraordinarily inefficient use of land.

With land that valuable, and a land value tax/higher property taxes he'd have been run out of business years ago and replaced by one or more economically efficient companies.

Yes, but his statement that the land is worth 10X doesn't have to be true to be effective leverage in negotiation. Perception is everything, and casually dropping a "Eh, I don't really need you", and turning your back on a negotiation is often amazingly effective.

So if the factory is in business, the owner has an $11x asset. Otherwise, a $10x asset.

Seems like still in best interest to have employees for factory.

Yes, that's why he told them this - he prefers to be in business with employees. He's just telling them their negotiating position is very very weak, and their strike has no value.

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