Google CFO Says Company Keeping $48 Billion Cash Stash For Possible Acquisitions, Investments

[Purveyor]

By Associated Press, Published: February 28

SAN FRANCISCO — Google plans to cling to its bulging stash of cash to pay for potential acquisitions and other technology investments that might boost future profits, a top executive said Thursday.

Patrick Pichette, who oversees Google Inc.’s bank accounts as the company’s chief financial officer, explained the company’s rationale for hoarding $48 billion in cash during a technology conference hosted by Morgan Stanley.

“It serves the shareholder best to actually have that strategic ability to pounce” when there is the opportunity to make a major acquisition, Pichette said.

Although he didn’t identify possible takeover candidates for the future, Pichette cited Google’s $12.4 billion acquisition of cellphone maker Motorola Mobility last year as a prime example of why the company believes it needs to have lots of money at its disposal. Although Motorola has been a financial drag on the company so far, Google believes having it will ultimately will help it put its digital services on more smartphones and tablet computers.

MORE...

http://www.washingtonpost.com/business/technology/google-cfo-says-company-keeping-48b-in-back-packet-for-possible-acquisitions-investments/2013/02/28/da38a138-81da-11e2-a671-0307392de8de_print.html

[denverbill]

1. More like acquisitions, as in acquring legislators to vote for tax holidays for repatriation.