Google Inc. clings to cash for acquisitions, CFO says
BY Associated Press
Friday, March 01, 2013
3/01/13 at 4:18 AM
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 San Francisco 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, he 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 ultimately will help it put its digital services on more smartphones and tablet computers.
Google Inc. CFO Patrick Pichette: Having cash on hand "serves the shareholder best to actually have that strategic ability to pounce."