▲ Up
11:04 31-07-2015
MAIN АКИpress CA-News
About us On-line subscription
Google balks on its 2nd biggest acquisition, passing on mystery $5bn company - Forbes

Bishkek (AKIpress) - google Google eyed buying a mystery foreign company with a $4 billion to $5 billion valuation but eventually dropped the deal, the Forbes said May 21.

The search giant, which has some of the biggest offshore cash holdings among U.S. companies, has no plans to bring that money back home any time soon, it explained in the letter, which was a response to an SEC inquiry. In fact, it plans to spend $20 billion to $30 billion on foreign deals — big news that suggests it will ramp up its acquisition activity.

But buried inside the letter is a tantalizing nugget about a major potential deal that fizzled into nothing.

“Further, we recently pursued but discontinued a potential buyout of a foreign company, with a valuation estimated in the range of $4 to $5 billion,” the company wrote.

That deal would have been huge — Google’s second-biggest acquisition ever and a major spend of its foreign cash, which can’t be used for U.S. acquisitions. Google paid $12.4 billion in 2012 for Motorola Mobility and $3.2 billion in January for Nest.

Google did not name the company or give any other details about it, and a Google spokesperson declined to comment. Analysts could only guess.

“It’s just so murky,” said Needham and Co. analyst Kerry Rice. “We don’t even know what vertical — it could be search, e-commerce, alternative energy.”

Whatever it was, it could have been a key part in more foreign acquisitions, which Google called “a part of our overall growth strategy.” The original SEC letter asked Google for more details about what it planned to do with the $33 billion it has parked overseas. Google responded that it “continues to expect substantial use of our offshore earnings for acquisitions,” especially as it expands into industries where its competitors are globally based.

Google spent $1.4 billion in 2013 on more than 20 deals, and pointed to its $1 billion purchase of Israeli traffic and mapping startup Waze as a purchase made with its foreign cash.

15:51 23.05.2014
10:54 Tajik Foreign Minister meets with Representative of United Nation High Commission for Refugees10:54 Searches for tourists from Lithuania have not yet yielded results10:50 Three other parties notify CEC about participation in upcoming parliamentary elections10:36 Kara-Kul hosts exhibition of drawings of children with disabilities10:35 Denison Mines to sell its interest in Gurvan Saihan in Mongolia for $20mln10:33 Reforma Party joins Respublika Ata-Jurt10:31 Malaysia sends team to study debris10:25 18 colleges and schools prepare specialists with secondary medical and pharmaceutical education10:17 Tajik government working on elimination of consequences of natural disasters in Badakhshan10:14 President Atambayev approves amendments to law on status of MPs10:06 FINA Swimming World Championships: Kazakhstan women's water polo team wins over New Zealand09:57 IOC president reminds members about responsibilities09:55 OIC to chose Friday 2022 Winter Olympic host between Almaty and Beijing09:55 High school student from Kyrgyzstan wins bronze medal at International Chemistry Olympiad in Baku09:45 Inclusive playground for children with disabilities to be constructed in Osh09:45 Uzbekistan to launch train to Issyk-Kul09:28 Mudflow threat persists in Tajikistan09:27 Earthquake measuring 3.5 points jolts Kyrgyz-Tajik border09:21 Fans of science fiction from CIS countries to take part in cosplay contest in St. Petersburg09:21 Europa League: Almaty's Kairat takes victory over Scottish Aberdeen 2-1
+26° C
+38° C
+32° C
+30° C
+36° C
exchange rates

© AKIpress News Agency - 2001-2015. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to www.akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75