Google just has too much cash
By Richard Koman - August 25, 2006
With $9.8 billion in cash and securities, the SEC may start considering Google a mutual fund, Red Herring notes, which means the company might have to start spending that money like crazy - or face much tighter regulations. Google has applied for an exemption but of course isn't saying what they would do if they didn't get it.
Google lists $14.4 billion in assets, including $4 billion in cash and $5.8 billion in marketable securities. AP reports that the Investment Company Act of 1940 requires companies with more than 40% of assets in cash and securities to be regulated under the stricter disclosure and operating rules required of mutual funds. ``Google states that it is not in the business of investing, reinvesting, or trading in securities,'' the company said it a July 20 filing.
A Google spokesman told Red Herring: "Our only comment is that we hope our application will be approved and if necessary will work with the SEC to address any concerns."
How does a company even spend that much money, though? Google focuses on small companies with proprietary technology that probably cost between $8 and $20 million each. A real estate buying spree in Mountain View only dented the bank account by $300 million. RH suggests Google could do a massive expansion of infrastructure - or buy a Prius for everyone in Oakland.
- Richard Koman
« We have no shortage of great ideas, but a shortage of great teams -- the Silicon Valley Watcher Jobs Board | Main | More Sony battery recalls - a safer alternative exists »
August 25, 2006 | Permalink | Comment | Category: | Subscribe to SVW
- Top Stories:
- Tech Awards For Benefiting Humanity
- The Death Of The Search Algorithm? Techmeme Has Six Editors
- TEDxSF - Little TED Just Like The Big TED
- SNCR Research: Social Media IS Influencing Business Decisions
- What's Next? Beyond Real-Time...
- PearlTrees: A Novel Approach To Human Mapping Of The Internet
- MediaWatch Analysis Part II: Google Has More To Lose Than Murdoch
- MediaWatch Analysis: Murdoch Will Negotiate Payment For Access To Basket Of Content With GOOG et al
- WeekendWatcher: The Sheer Number Of Things Will Devalue Them
- ChipWatch - Where Will The Next Generation Of Engineers Come From?
- Public Healthcare Could Cut Startup Costs And Help Spur Innovation
- Is GOOG's $750m AdMob Buy Strategic Or Dumb? An alternate view...