By Hawkinvest:Many leading tech companies have billions in cash on balance sheets earning very little in this low-rate environment. Management at these companies needs to find ways to create shareholder value with this asset. Letting that kind of cash sit around in money market funds is not what top CEOs are paid to do. A number of top tech companies made significant acquisitions in 2011, and 2012 is setting up to be another big year for tech deals. A recent Bloomberg article sums up the current situation and states:
In a bid to transform that torrent into profits, a cash rich industry is poised to surpass 2011's almost $200 billion volume of announced mergers and acquisitions as companies such as Cisco (CSCO) and International Business Machines Corp. (IBM) search for deals that will boost their capacity to provide new storage, analytics and security services to enterprise customers.
With cash-rich companies on
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