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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Harley Scott who wrote (4914)	4/2/1998 2:01:00 PM
From: Steven Bowen	Read Replies (1) \| Respond to of 12468

"...it seems the question isn't whether they sold these assets for more than they paid. It's whether they paid in aggregate less than they would have by building 7 switching centers from scratch. Does anybody know the answer to this?" It doesn't seems like it makes a difference now since they bought and sold an asset. It doesn't matter if it would have cost them $150M to build the switching centers and then sold them for $138M, they still lost $12M. It's like they were willing to spend $12M to move their plans ahead by one year. Of course I'm sure there's a lot more to the deal than we're guessing. They may have a real favorable leasing arrangement that will save them more than $12M over the life of the lease. One of the analyst had the answer to your cost question in a report, but off hand I can't remember which and can't find it. The difference wasn't as great as I would have guessed. It seems that buying the switches thru bankruptcy was only saving them something like $1M per switch. SteveG will probably remember the report.