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A commenter on this blog, L. Zhang, made an excellent point that most of Google's cash is trapped overseas. Repatriating it to the US to buy US companies would
by sunir 15y ago
A commenter on this blog, L. Zhang, made an excellent point that most of Google's cash is trapped overseas. Repatriating it to the US to buy US companies would cost them 35% in tax.
Borrowing US money at 3.75% to buy US companies is far cheaper than using their own cash reserves.
- rorrr 15y agoBorrowing at 3.75% is like getting free money. Real inflation rate is higher anyway. http://www.shadowstats.com/alternate_data/inflation-charts http://www.shadowstats.com/alternate_data/inflation-charts
- dataminer 15y agoAccoring to http://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid=381481 http://torontostar.morningstar.ca/globalhome/industry/news.a... Google has 17 Billion offshore and 20 Billion in US they are not as cash strapped as Microsoft which has almost all its cash outside of US.