Description: Facebook is opening a data center in April in Prineville, Oregon, and has promised to create jobs in exchange for tax breaks.

Source:  CNNMoney.com – video report

Date: 02/11/2011

Link:  http://money.cnn.com/video/technology/2011/02/11/t-facebook-oregon-data-jobs.cnnmoney/

Questions for discussion:

Summarize the financial structure of this investment by Facebook from the firm’s point of view and then from the other stakeholders.

• What are the key financial benefits to each stakeholder?
• What are the drawbacks to this deal?
• Does this financial structure act as a subsidy by the government, employees, or other stakeholders?
• How might this financing model impact other communities and firms?