If you’re spending $24 billion to buy a company, it’s important to know that that company also has $14 billion in cash. That’s Dell’s situation exactly, according to its most recent financial filings. But there’s a catch: it’s in overseas accounts.
Company founder Michael Dell, who’s trying to buy the company, can touch that money, but he’ll pay a steep price, according to Lillian Mills, chairwoman of the Accounting Department at UT’s McCombs School of Business. She says that money was earned outside the United States, and if it comes home, it’s subject to U.S. taxes.