From InfoWorld: Google plans to spend $20 billion to $30 billion of its of its accumulated international profits to fund potential acquisitions of non-U.S. companies and technology rights.
The company disclosed its plans to the U.S. Securities and Exchange Commission (SEC) last year, in a document that was published Tuesday. The SEC had asked Google to describe its plans for reinvesting its undistributed earnings in greater detail.
In 2012, Google generated about half its revenue in non-U.S. markets. It said it will continue to use a substantial part of the profit from that business to acquire non-U.S. companies. The alternative, repatriating those earnings to the U.S., could expose it to a significant tax bill.
It plans to do so because its global business has expanded into other product offerings such as mobile devices, where its competitors and business partners are no longer primarily U.S.-based multinationals, Google told the SEC.
Over the past few years, Google has completed significant acquisitions with an increasing individual deal size, a trend that is likely to continue in future years, it said.
View: Article @ Source Site
