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Did Zynga lay off 15% of its workforce to recoup the $527M investment it made in NaturalMotion? See https://news.ycombinator.com/item?id=7153395 https://news.yc
by ergoproxy 13y ago
Did Zynga lay off 15% of its workforce to recoup the $527M investment it made in NaturalMotion? See https://news.ycombinator.com/item?id=7153395 https://news.ycombinator.com/item?id=7153395
This article says they'll take a $17M charge this year on the lay off and then save about $33M/year. Discounted at 6% per annum that works out to $533M. See http://www.wolframalpha.com/input/?i=-17+%2B+Sum%5B33%2F1.06%5En%2C%7Bn%2C1%2Cinf%7D%5D http://www.wolframalpha.com/input/?i=-17+%2B+Sum%5B33%2F1.06...
The other article says Zynga has "about $1.2 billion in cash and marketable securities on hand." But a dailyfinance article suggests companies aren't really as cash rich as they seem; their money is locked up in offshore tax havens; they can't repatriate it without paying tax on it: http://www.dailyfinance.com/2011/07/25/why-are-rich-companies-laying-off-poor-workers/ http://www.dailyfinance.com/2011/07/25/why-are-rich-companie...
- sethhochberg 13y agoQuestion for those with a little more tax acumen than I have - if moving large sums of money offshore is frequently a one-way street due to tax penalties when that cash comes back into the country, what are companies using (or able to use) that cash for?
- jmcphers 13y agoBuying stuff that's also offshore. For instance, it's rumored that Microsoft's acquisition of Skype was much less expensive than it might have been because Microsoft was able to purchase Skype with funds already overseas--if they had wanted to purchase a US company, they'd have had to move the funds back to America, with all of the tax consequences such a move implies.