Video

John J Hardy
Saxo Bank's Head of FX Strategy John Hardy gives his take on why USD is underperforming and how markets could evolve over the coming months.
Editor’s Picks 14 June 2016 at 1:02 GMT

Why Microsoft, with $100bn, is borrowing to buy LinkedIn

Bloomberg
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. For one thing, Microsoft will avoid having to pay a 35% tax rate to repatriate cash from overseas accounts. While it’s true that Microsoft has more than $100bn in cash and cash equivalents, most of it is parked offshore. Bringing home any of it to fund the proposed $26.2bn purchase, announced on Monday, would generate a tax bill.
Read full article at Bloomberg

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