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by nl
3587 days ago
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So I think people are missing some points around this deal. Investment firms like hosting companies for two reasons: 1) They give predictable revenue, which is a great thing. Even if the profit rate isn't amazing, the revenue gives a lot of cash-flow. 2) They (often) own large infrastructure asserts (data centers), which can be depreciated and used as a tax write-off. Not saying that they won't want to take costs out of the business too, but the motivations for a purchase like this aren't as simple as one might think. |
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