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This is not an existential issue vis-a-vis Apple, Google, or even about capitalism. It's really a CFO's problem, financial engineering. Companies that sit on
by sonnyblarney 8y ago
This is not an existential issue vis-a-vis Apple, Google, or even about capitalism.
It's really a CFO's problem, financial engineering.
Companies that sit on massive cash all have this problem.
The difference is not one of culture, it's the fact that Google is still controlled by powerful founders who can act in different way, i.e. 'maintain hard power' through share voting 10x's ... or even via 'soft power' just by being founders.
Apple has more of a regular CEO.
There are a variety of interesting things about this, but it's mostly on the financial side, and won't make a spec of difference in the rest of the company.
Neither Apple nor G will be operationally hindered, M&A and other activities will be just the same.
As founders move away from Alphabet, I bet they take a few fewer moonshots though ...
- shusson 8y ago> This is not an existential issue vis-a-vis Apple, Google, or even about capitalism. > It's really a CFO's problem, financial engineering. I'm not sure how you distinguish this from capitalism.
- sonnyblarney 8y agoTo pay or not pay dividends is economically a net neutral exercise. This is a matter of investor relations, and an issue mostly for the CFO of the company and has little material relationship to the nature of the company. It's not really a fundamental issue of control, it's just one of the many issues that pops up in the day to day of organizations that are cash flush relative to their income.