Jun
13
Why Microsoft, With $100 Billion, Wants a Loan for LinkedIn
By-
Maneuver helps tech giant avoid 35% tax to repatriate cash
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Interest-payment deductions could lower future tax bills
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…
Why Microsoft, With $100 Billion, Wants a Loan for LinkedIn
