A $500bn game of chicken. That’s what it feels like as a handful of the biggest US technology companies posture over what they plan to do with their “trapped” overseas cash holdings. But like all games of chicken, the end must come eventually – and it’s hard to see that this is one the tech companies will win.
John Chambers, chief executive of Cisco Systems, struck the most provocative pose in an interview with the FT last week. After four fruitless years of arguing in Washington for a tax holiday for repatriating his foreign cash to be invested in the US, he says he’s had enough and is going to spend it somewhere else instead.