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Ideally if Google management wants to run these types of companies, they should pay dividend on the shares, taking money out and then invest in these businesses
by simula67 9y ago
Ideally if Google management wants to run these types of companies, they should pay dividend on the shares, taking money out and then invest in these businesses. The only reason I can think of for allowing Google management to throw other peolpe's money at their pet projects is taxes
- jacksmith21006 9y agoNot following. Paying a dividend and the money is gone versus reinvesting. So the opposite of what you are suggesting so maybe not following?
- simula67 9y agoThe profits generated from Google's business belongs to the shareholders ( owners ) of the company. If the money can be used to defend the business ( Android, Chrome etc ) it can be - and should be - reinvested. Is self-driving cars related to search ? You could argue that it defends the brand. But otherwise, the money should be paid out as a divident and the cash thus obtained by Google's management ( Larry and Sergey still hold a lot of Google stock ) can be used to fund these type of projects. Other shareholders who do not believe in such projects can invest their dividents in businesses they believe in