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."

Trump Says He Wants to Cut Corporate Tax Rate Down to 15%
26:12 - President Donald Trump speaks about his tax plan during a tax reform event in Bismarck, North Dakota. (Source: Bloomberg)
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