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I'm confused about something and hope someone here can clear it up. A threat of stopping the sale unless the US gets paid "a substantial amount of money" sounds
by ekrebs 6y ago
I'm confused about something and hope someone here can clear it up. A threat of stopping the sale unless the US gets paid "a substantial amount of money" sounds like extortion to me. Is there any precedence for the US getting cuts of acquisitions?
- tantalor 6y agoYeah, it's called "taxes". When companies merge, they pay taxes on the value of the capital, stock or assets acquired during the process of a merger https://smallbusiness.chron.com/taxable-merger-22406.html https://smallbusiness.chron.com/taxable-merger-22406.html
- valuearb 6y agoForeign companies don’t owe the U.S. taxes when U.S. companies buy them.
- bobwernstein 6y agomicrosoft isn't foreign
- valuearb 6y agoMicrosoft isn’t getting bought.
- bobwernstein 6y agoexactly so Microsoft pays
- Natsu 6y agoThere's this for presidential authority: https://www.law.cornell.edu/uscode/text/50/1702 https://www.law.cornell.edu/uscode/text/50/1702 I do not know on what basis they could therefore demand any payments, though.