Google has just finalized a bond issue of nearly 3 billion dollars by taking advantage of low U.S. rates, which revives rumors of a future acquisition.
Google has just made a bond issue that allowed him to get close to 3 billion. The U.S. giant has benefited from exceptionally low interest rates in the U.S., many say they should go back soon, to get cash. This operation, a first for Google, has consistently attracted crowds and some believe that the company could have achieved the double. With a yield of 10-year bond to 3.734% against 3.15% for U.S. Treasury bonds of similar maturity, Google gets money for almost nothing while avoiding repatriation of capital from the abroad, analysts said.
But to do what? This announcement has once again revived the rumors of a future acquisition by Google in the coming months. The Mountain View giant that already has 37 billion cash on its balance sheet had already failed to redeem Groupon for 6 billion. More recent discussions with Skype, the VoIP specialist about a possible joint venture had not worked well, since ultimately bought by Microsoft (see article: “Facebook would be interested in buying Skype )