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Doesn't make sense. I don't have detailed understanding on finances but Tax writeoff should be beneficial when you have a valuable assets still in use which can
by drieddust 8y ago
Doesn't make sense. I don't have detailed understanding on finances but Tax writeoff should be beneficial when you have a valuable assets still in use which can be written off in book.
In this case they have spend $5B only to write if off the following year. Something else is going on. I don't think these guys are so stupid.
- dredmorbius 8y agoIf part of the deal was in stock, that stock has depreciated. Stock is something a company can create. Cash is something it needs to acquire. Stock swap, write-off, devalued stock. No net cash position change. Asset-liability shift may be worth the market-cap writedown.