Cisco Is Keeping Its Promise Not To Buy Companies In The US
SolveDirect makes technology that helps enterprises connect to multiple clouds and share data among them. This is a good move for Cisco's portfolio as it tries to remake itself into a bigger
But the buy is interesting for another reason. SolveDirect is based in Vienna, Austria. This marks Cisco's third
Last month, Cisco CEO John Chambers said that he was no longer willing to use the company's $46 billion in cash to acquire U.S. companies until the U.S. changes its tax code.
That's because 80 percent of that cash is parked overseas, where most of it was also earned. If Cisco brings it back to spend it in the U.S., the company will have to fork over 35 percent in taxes. Chambers has been trying to get the U.S. to lower that tax rate for years.
The Senate's Republican Policy Committee has argued that the U.S. approach to taxing overseas earnings disadvantages U.S. companies, because most countries take a "territorial" approach to taxing income, taxing it based on where it's earned.
Cisco has historically been a company that acquires like crazy, particularly in the U.S. For instance, in 2012, Cisco bought 11 companies, nine of them in the U.S. and two overseas. But one of those overseas companies was a big purchase—the U.K.-based NDS Group for $5 billion.
- Stock markets stage strong rebound after 4 days of slump; Sensex rallies 599 pts
- Sustainable Transportation Alternatives
- 10 Foods you should avoid eating when in stress
- 8 Lesser-known places to visit near Nainital
- World Liver Day 2024: 10 Foods that are necessary for a healthy liver