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They'd probably have to pay taxes to repatriate that cash to buy those firms, however, and buying a firm has costs of its own (not just overheads, but you obvio
by emn13 9y ago
They'd probably have to pay taxes to repatriate that cash to buy those firms, however, and buying a firm has costs of its own (not just overheads, but you obviously need to pay more than the market cap usually). So this amount is well beyond reach (using only that 260B cash on hand, and wtf that's an unimaginable amount).
- Retric 9y agoYou don't need cash on hand for the full price of a company. ~10x leverage is possible so they have a ~ 1-2 Trillion dollar budget. PS: They can also create a foreign subsidiary to make the purchase thus avoiding taxes.
- emn13 9y agoDefinitely. But the parent poster I was replying to was suggesting you could do it merely with cash in hand - and that's not going to be doable. I mean, I'm not saying the scenario is particularly realistic: it's an absurd hypothetical wherein they'd want all these companies, and want to use cash alone to boot :-).