Broadcom To Buy NetLogic For $3.7 Billion

An anonymous reader writes "Bloomberg reports that chip-maker Broadcom will be spending $3.7 billion to acquire NetLogic Microsystems in an effort to shore up their wireless infrastructure business. 'Customers such as Huawei Technologies Co. and ZTE Corp. use NetLogic processors in the equipment that controls the flow of video and other data across the Internet. The deal gives Broadcom, which also makes chips for mobile handsets, a more profitable way to harness the boom in tablets and smartphones, said Stacy Rasgon, an analyst Sanford C. Bernstein & Co.' The Register cites this as evidence that corporate tax breaks don't create jobs, as companies look to spend spare cash instead on acquisitions. The deal is expected to be completed during the first half of next year."

Comments

Tax Breaks

[msobkow]

The Register cites this as evidence that corporate tax breaks don't create jobs, as companies look to spend spare cash instead on acquisitions.

You'd think 15-20 years of offshoring and outsourcing would have made the governments of the world realize the only thing tax breaks do is line the pockets of big corporations. There is no "trickle down" effect any more. Companies don't "expand"; they "acquire." And then they cut duplicate jobs.

Re:Tax Breaks

[SilverHatHacker]

Yes, but tax breaks buy votes. When you've only got four years in office before the next election, you've got to prioritize. Four years isn't enough time to actually fix anything that's broken, but it's enough time to campaign.
There was a parable in the Bible that's kind of like this, about a guy who was about to be fired as manager of an estate so he went out and forgave everybody's debts. Cost the master of the estate a lot of money, but the guy was getting fired anyway and he ended up with a lot of friends who would keep him from ending up on the street. Government works the same way.