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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: John Donahoe who wrote (44420)	3/7/1999 4:27:00 PM
From: Glenn D. Rudolph	Respond to of 164684

RE: Why are you assuming when it states specifically in the press release, the 8K and the 10Q they are leasing? What are the advantages to leasing versus buying the property. What was the best business decision? Is it important? John, I honestly do not know. We are kind of going over a what if scenerio that will never be resolved for years. I commented about why are you assuming. Let me make it worse because I am going to be guessing which is far from factual<G> My guess is the preservation of capital. I know Amazon just floated another bond and depending upon when accounts payable are do and other near term expenses, there is $1.3 billion left. Maybe $1.2 or $1.4 billion but what is a couple hundred million between friends;-) I am guessing that the building their leasing is truly going to be highly automated. Rather than just a PA system, maybe some type of robots that can pick books for their place in storage, box, them, etc. Maybe also put books int her proper place when they arrive. I am guessing this is very costly. Even in the desert a building this sized would be many millions if not a $100 million. The plan is to add more distribution centers and tol continue to operate at a loss for the forseeable future. There is likely no gurantee Amazon can raise more cash in the future and I am not stating they cannot. In either case, leasing permits Amazon to pay rent and use the cash for the automation and operations. This is my guess. Is it important, that depends on the cost of the building and if management would want to try and obtain more cash sooner than later. Glenn