Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Google to use overseas cash to help pay for $20 billion to $30 billion in foreign acquisitions

SAN FRANCISCO - Google is amassing cash overseas to help finance a foreign shopping spree that could cost the Internet company up to $30 billion.

The potential price tag for Google's expansion plans outside the U.S. surfaced Tuesday in documents disclosing the company's response to recent questions raised by the Securities and Exchange Commission.

Pressed to provide more details about its plans for its overseas cash, Google revealed that $20 billion to $30 billion is earmarked for the acquisition of foreign companies and technology rights held outside the U.S. The Mountain View, California, company didn't specify a timetable for completing the deals or mention any acquisition candidates.

Google nearly pulled off a major acquisition late last year, according to the letter to the SEC. The company said it was in talks to buy a foreign company before abandoning the negotiations shortly before writing the Dec. 20, 2013, letter. Although the letter is five months old, the SEC didn't release it until Tuesday.

Google Inc. declined to comment on the letter.

Had the potential deal mentioned in the SEC letter been completed, it would have eclipsed Google's largest foreign acquisition so far — last year's $1 billion purchase of Waze, a digital mapping service based in Israel.

Google has spent about $27 billion buying other companies, primarily in the U.S., during the past decade. Its biggest acquisition so far has been Motorola Mobility, a cellphone maker snapped up for $12.4 billion two years ago. Google is now in the process of selling Motorola's phone business to Lenovo Group for $2.9 billion in a deal that still requires regulatory approval.

Besides buying foreign companies, Google also may spend about $4 billion buying offices and data centres outside the U.S, according to its explanation to the SEC.

Google's overseas cash totalled $34.5 billion through March. Another $25 billion is held in the U.S.

Like many other large technology companies, Google has been criticized for keeping money overseas to avoid paying U.S. taxes. Lawmakers in Britain and France also have lashed out at Google for avoiding taxes in their countries by booking revenue in Ireland, where tax rates are lower.

Google has steadfastly maintained that all of its financial reporting complies with tax laws around the world.

Most of Google's revenue comes from outside the U.S.

A proposal urging Google to pay its "fair share" of taxes around the world was rejected by more than 90 per cent of the company's shareholders at a meeting last week.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates