Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Deepak who wrote (3388)	4/25/1998 2:38:00 PM
From: Mark Fleming	Read Replies (1) of 164684

That's nonsense. Yes, companies with cash are attractive buyouts, but not companies that traded cash for debt. Do you know the Balance sheet forumla: Equity = Assets - Liabilities. >>Another interesting possibility is that AMZN itself is the target of a takeover. If it wanted to avoid such a takeover, it would have issued a lot of new stock (this is how poison pills work). But if its a target and it wants to proceed with the takeover (ie. AMZN wants to sell) AMZN would issue debt. This way the company which buys AMZN is financing the deal to some extent with AMZN's own cash. If this doesn't make sense, just remember that companies with lot of cash are attractive takeover targets.

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