WP –
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. The money-management policies of publicly traded companies are getting more attention as more firms hoard huge amounts of cash instead of introducing or increasing dividends to reward stockholders. Apple Inc., the world’s most valuable company and a Google rival, is currently under the most scrutiny because it holds $137 billion in cash. WAIT. Before you start thinking about why a company like Google or Apple would want to purchase a country or an army or arm themselves to the teeth, start by asking yourself why they WOULDN’T. Why would an entity with the power to take over half the world stop themselves from doing so? Because large wealthy organizations DON’T like power? Yeah, okay. That’s why the history books are filled with all of those stories of powerful empires who just hung out and stayed to themselves.
If Google and Apple combined (bank) forces, they could very seriously take over the world. For comparison’s sake, America’s 2nd biggest company WalMart only has $8 billion in cash on hand. Eight billion versus $185 billion. Yeah, let that sink in for a moment. “Pay for potential acquisitions”? There’s no way that doesn’t mean an African country full of skinny coding slaves.
Google could buy…
Afghanistan (20 billion), a Nuke (20 billion), and have enough left over for about 900 M1 Abrams tanks ($9 million/ea)
Iceland (13 billion), two B-2 Bombers (2.4 billion), two aircraft carriers (4.5 billion), and about 800 or so small private islands (25 million)
or my personal favorite…
THREE Jamaicas (15 billion).
PS – Let it be known that if the United States ever goes to war with Apple or Google, I’m siding with them.
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