Re:Source: Groupon Doesn’t Have The Cash to Build Its New Da...
by chernevik on Tuesday December 20, 2011 @02:10PM
(#3374660)
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.
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.