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Absolutely. It's headlined as if the situation is some kind of financial failure, but there are no numbers on the premium they're currently paying or the cost
by chernevik 15y ago
Absolutely. It's headlined as if the situation is some kind of financial failure, but there are no numbers on the premium they're currently paying or the cost of a new center. 1/4 of the piece quotes prospectus boilerplate. No named attributions, nothing from analyst types following the industry.
Not even clear cash is the key here anyway, I would think they could finance a data center with some kind of construction mortgage, and maybe some leasing deal.
Now, pulling things out of my hat, I understand that companies can fully deduct their IT investments made in 2011, that's a huge tax advantage. I don't even know if Groupon can make use of that (are they paying taxes yet?). But if Groupon is missing that window because they _cannot_ get financing in place, _that_ would be a story, one with implications for Groupon, their model, the banks, and bank valuation of corporate IT capital assets.
This, on the other hand, is not a story of any sort.