Google CFO Says Company Keeping $48 Billion Cash Stash For Possible Acquisitions, Investments
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 companys chief financial officer, explained the companys 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 didnt identify possible takeover candidates for the future, Pichette cited Googles $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.
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