Home' Trinidad and Tobago Guardian : May 22nd 2014 Contents A26
Guardian www.guardian.co.tt Thursday, May 22, 2014
SAN FRANCISCO---Google is amassing cash over-
seas to help finance a foreign shopping spree that
could cost the Internet company up to US$30 bil-
The potential price tag for Google s expansion
plans outside the US.surfaced 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 US$20 billion
to US$30 billion is earmarked for the acquisition of
foreign companies and technology rights held outside
the US. 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 December 20, 2013, letter. Although the
letter is five months old, the SEC didn t release it
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 US$1
billion purchase of Waze, a digital mapping service
based in Israel.
Google has spent about US$27 billion buying other
companies, primarily in the US, during the past
decade. Its biggest acquisition so far has been Motorola
Mobility, a cellphone maker snapped up for US$12.4
billion two years ago. Google is now in the process
of selling Motorola s phone business to Lenovo Group
for US$2.9 billion in a deal that still requires regulatory
Besides buying foreign companies, Google also
may spend about US$4 billion buying offices and
data centres outside the US, according to its expla-
nation to the SEC.
Google s overseas cash totaled US$34.5 billion
through March. Another US$25 billion is held in the
US.Like many other large technology companies,
Google has been criticized for keeping money overseas
to avoid paying US 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 US.
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. (AP)
Google eyeing foreign buyouts
NEW YORK---Federal Reserve Chair Janet Yellen
paid tribute yesterday to the man she succeeded
three months ago, saying Ben Bernanke demon-
strated the grit that was needed to stabilise the
financial system and restore economic growth.
Yellen told graduates at New York University s
commencement that Bernanke s response to the
2008 financial crisis and the Great Recession showed
the courage it takes to stand up for principles.
Bernanke faced "relentless criticism, personal
threats and the certainty that history would judge
him harshly if he was wrong," Yellen said at the
ceremony at Yankee Stadium.
"You, too, will face moments in life when standing
up for what you believe can make all the difference,"
Yellen said. In fact, she said, research shows that
measures of ability are unreliable predictors of per-
formance in academics or employment. Instead,
she said, what s more important is a quality that
psychologist Angela Lee Duckworth calls grit---"an
abiding commitment to work hard toward long-
range goals and to persevere through the setbacks
that come along the way."
When the financial crisis erupted, Yellen was
president of the Fed s San Francisco regional bank.
She was tapped to become the Fed s vice chair,
the No 2 position, in 2010. Yellen said she and her
Fed colleagues struggled during the crisis to produce
the right mix of approaches to deal with the eco-
nomic threats. (AP)
Yellen hails Bernanke's
courage in crisis
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