Google Letting Cash "Pile Up"

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While the economy is hurting most people, Google has found a novel way to weather the storm…the company is going to let its cash “pile up.” Geez, what were most of us thinking? All we have to do to make it through hard times is let our cash pile up!

Google Inc plans to let its cash "pile up" as it weathers an economic recession but doesn't expect to see a fall in revenue, the Web search leader's Chief Executive Eric Schmidt said on Wednesday. Google will only use its $8.6 billion cash cushion for "very very conservative investments."
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I wonder how many Chipotle Burritos that would buy.
brb
Researching.
 
scrooge-mcduck.jpg
 
No tax: That would be around 1.3 billion burritos.

mmmmmmmmmmmmmmmmm Delicious
 
Didn't they try that in Blow?

Oh well, as long as Google doesn't stick the money in a bank in Panama they should be ok;)
 
Heh, a single smart company in the sea of companies... savings.
 
Seems like a PR blurb, a smart company will still realize when another is undervalued due to a recession and buy if the price is right.
 
If GM had done this during its good years its survival would not now be in "Substantial doubt"
 
Chiplg said:
If GM had done this during its good years its survival would not now be in "Substantial doubt"
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I doubt GM ever hd $60 billion in reserves if you add their reserves for the entire life on the company. That's how deep in the hole they are now.
 
Lebowski said:
I doubt GM ever hd $60 billion in reserves if you add their reserves for the entire life on the company. That's how deep in the hole they are now.
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That's because they never considered their savings account as a worthy investment. If they hadn't blown money for 75 years (Not that I blame them, the economy was great and cars/trucks sold like candy), they probably could have had savings of over $100 billion.
 
I just forwarded this to the White House on their contact us page.
 
Pile up, hell. I'd start buying the country up in pieces.

Oh, wait, anti-trust laws...damn laws...
 
Wise move, and many companies are doing this, especially those with substantial debt coming due in the next year or 2. Liquidity is the key, as the capital markets are still basically at a stand still. There is NO debt to be had, so many companies aren't able to refinance debt coming due in the next couple of years, and as a result will have to pay off rather large sums of debt.

Long story short, I'd be pleased with any company who made the intelligent move of shoring up their balance sheet with more cash. They may be able to acquire other companies at a significant discount once the tide turns, or weather the storm if the tide doesn't turn in the immediate/near future.

The sarcasm at the end of the snippet insinuates the writer knows nothing about finance....there is probably a better way to word that last sentence...
 
the should buy gold. And I don't mean buy some gold I mean buy all of the gold.

then issue google dollars backed by google gold.

THEN OVER THROW THE GOVERNMENT AND FEDERAL RESERVE.


you can do it google.
 
It may not be the best strategy for Google to let their cash pile up. They may be leaving themselves open to a hostile takeover by companies with big plans on how to spend all of that money. It happened when I worked for Lucky (the grocery store) which had boatloads of liquid cash, and then got taken over by American Stores, Inc. (Skaggs/Alpha-Beta).
 
theres a concept. save money for rough times. Wow.
now the cool kids just whine and snivel and beg for handouts. GTFO loser companies.
 
Spectrum17 said:
It may not be the best strategy for Google to let their cash pile up. They may be leaving themselves open to a hostile takeover by companies with big plans on how to spend all of that money. It happened when I worked for Lucky (the grocery store) which had boatloads of liquid cash, and then got taken over by American Stores, Inc. (Skaggs/Alpha-Beta).
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Umm......what? Google's mkt cap is currently ~96 BILLION dollars......I can't think of a single company kicking that kind of cash/financing around, and you sure as hell aren't going to be able to pull off an LBO since there is NO debt to be had in the market still. Sorry, but that is just dead wrong...
 
jflail2 said:
Umm......what? Google's mkt cap is currently ~96 BILLION dollars......I can't think of a single company kicking that kind of cash/financing around, and you sure as hell aren't going to be able to pull off an LBO since there is NO debt to be had in the market still. Sorry, but that is just dead wrong...
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Lol. Exactly what I was thinking. Who's going to buy Google... The Chinese government?
 
Aren't we supposed to save our money up when the economy is good, then spend it when it's down? Are we practicing some kind of skewed reverse economics now?
 
Nobu said:
Aren't we supposed to save our money up when the economy is good, then spend it when it's down? Are we practicing some kind of skewed reverse economics now?
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No, its called, "lets do our damnedest to ruin the country ASAP"
 
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