Google’s CFO says the search giant is holding on to its cash reserves to pay for potential acquisitions and technology investments.
According to a report on the Sydney Morning HeraldPatrick Pichette defended Google’s decision to keep $48m in cash during a technology conference hosted by Morgan Stanley. The CFO said it served shareholder’s best to have the cash to “pounce” when there is an opportunity to make a major acquisition.
He pointed to Google’s $12.4bn purchase of Motorola Mobility last year as an example of why it needs such a huge cash fund.
Google is just one of several publicly-traded companies opting to sit on a lot of cash instead of offering new or larger dividends to reward stockholders. The SMH report points out Google has never paid a dividend since going public in 2004.