Posted by & filed under Governments & Regulators, Market Analysis.

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?

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