Cash-rich tech companies could make good acquisitions
December 2, 2008
Goldman Sachs & Co. has compiled a list of high-tech companies that are rich in cash, meaning that cash constitutes 20% or more of their market cap. The investment bank argues that the carnage in the stock market of late has thrown "babies out with the bath water," slamming values of companies across the board, whether they're swimming in cash or drowning in debt. This trend has become more pronounced in recent months, creating some compelling opportunities for investors, and presumably acquirers, as well. Goldman's list of today's cash rich companies could evolve into next year's juiciest acquisition targets.
Cash-rich tech companies could make good acquisitions