They say cash is king, and some of the largest Tech companies agree. See which ones are holding the most loot, and what they plan to do with it...
When it comes to actual cash assets, many tech companies are holding on to it more than at any other time since 1985. It seems odd that so many companies have started hording cash because as we all know, the economy has been in bad shape the past few years, the unemployment rate is high and it seems that just about everyone knows at least a few people who are looking for a job.
With the economy hurting, it would make sense for companies who have a few piles of cash laying around to spend it on research and development or at the least, take advantage of the bad economic conditions to swoop in and buy up a few companies at bargain rates.
So, which companies have the most cash? Here are the top 5:
- China Mobile – Surprisingly, the government owned mobile company earns large amounts of cash. So far, they haven't used any of it to acquire other companies, but that may change in the future.
- Microsoft - ($41.3 billion) For awhile, Microsoft was purchasing companies on a fairly regular basis. Since 2009 however, they have slowed their pace dramatically. It looks as though they are more interested in joining forces with other companies rather than simply buying them out. The Windows Phone-Nokia deal and the Yahoo-Bing partnership are prime examples.
- Cisco - ($40.2 billion) Cisco hasn't been buying up companies in the past several years. There are some rumors that they are thinking about purchasing Skype, but no official word.
- Google - ($35.0 billion) Google is one of the few companies who are still spending quite a bit of money. In 2010 they acquired 40 companies and are planning to continue that pace throughout 2011. Google is focusing on mobile, enterprise, display advertising and video. Of course, their $1.3 billion real estate investment in New York City in December didn't hurt either.
- Apple - ($27.0 billion) In addition to the cash, Apple has about $32.7 billion in marketable securities, which brings their cash and securities to almost $60 billion. Apple hasn't been quick to acquire new companies and doesn't seem to be interested going forward. As a company, they have a record of designing their technology more in house rather than acquiring the pieces through buying smaller companies.
Were there any surprises on this list? What do you think these companies are going to do with all of their cash? Let me know in the comments.
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By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for TechCareersBlog. Along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.
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