Are Tech Stocks Like LinkedIn Overpriced?
Microsoft Corp. has enough cash to buy LinkedIn Corp. four times over. So why is it taking out a big loan to pay for its latest purchase? Maybe because it’ll lower the technology giant’s tax bill. Microsoft will avoid having to pay a 35 percent tax rate to repatriate cash from overseas accounts. While it’s true that Microsoft has more than $100 billion in cash and cash equivalents, most of it is parked offshore. Bringing home any of it to fund the proposed $26.2 billion purchase, announced on Monday, would generate a tax bill. Henderson Global Investors Head of Global Equities discusses with Bloomberg's Anna Edwards in London and Manus Cranny in Dubai on "Countdown."
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26:12 - President Donald Trump speaks about his tax plan during a tax reform event in Bismarck, North Dakota. (Source: Bloomberg)