Alphabet Inc GOOGL GOOG has pocket change, and some think it’s time to go shopping. Josh Brown — CEO of Ritholtz Wealth Management and emcee of the upcoming Benzinga Global Fintech Awards — may have been one of the first to consider this:
Alphabet now has $102 billion in cash. What should they do with it?
— Downtown Josh Brown (@ReformedBroker) April 24, 2018
Truly, Google has enough capital to subsume a good number of competitors or suppliers. Here are some of the companies it could buy.
Auto OEMs
Alphabet could bolster its Waymo subsidiary with any two U.S. automakers. Tesla Inc TSLA has a market cap of $48.84 billion; General Motors Company GM, $52.87 billion; Ford Motor Company F, $42.38 billion; and Fiat Chrysler Automobiles NV FCAU, $36.89 billion.
Car Suppliers
Or it could build out its own OEM by aggregating suppliers. Delphi Technologies PLC DLPH, Lear Corporation LEA, Magna International Inc. (USA) MGA and BorgWarner Inc. BWA together total just $49.29 billion in market cap.
Data Analyzers
The company could boost its ad business with data and analytics tools from Helios and Matheson Analytics Inc HMNY ($52 million) or even salesforce.com, inc. CRM ($89.67 billion).
Production Companies
It could also expand YouTube’s original content portfolio by acquiring Lions Gate Entertainment Corp. (USA) Class A LGF LGF at $5.19 billion or CBS Corporation Common Stock CBS at $18.89 billion.
Tech Manufacturers
Alphabet’s Nest could accelerate smart home device development with the purchase of BlackBerry Ltd BB or Skyworks Solutions Inc SWKS for $5.7 billion or $16.5 billion, respectively.
Biotechs
The firms’ Verily and Calico subsidiaries could enhance research and development efforts with companies as big as Eli Lilly And Co LLY ($86.15 billion) or Bristol-Myers Squibb Co BMY ($85.15 billion).
Internet Providers
Google Fiber could expand its reach as an internet service provider with the purchase of Charter Communications Inc CHTR or Centurylink Inc CTL. Together, the competitors cost $93.02 billion.
Cyber Defenders
The newest subsidiary, a cybersecurity company called Chronicle, could eliminate competition from Palo Alto Networks Inc PANW with a $17.62-billion buyout.
Related Links:
Gene Munster Breaks Down Alphabet's Overlooked Businesses
Alphabet's Large Investment Spend Is Justified, KeyBanc Says
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