CNET.com - "Why Microsoft Should Aquire Sony's Gaming Division"

[Ail]

rocketpig said:
To add to what NJ5 said, massively profitable companies will sometimes keep large amounts of cash around for a few reasons:

1. They don't know what to do with it (see Blizzard)
2. They're planning on buying something really big soon (see MS and Yahoo!, even that deal was to be heavily financed by MS)
3. They're expanding into something new

But overall, companies try to keep very little cash on-hand. It's bad for them in a few different ways (the money doesn't grow, taxes, etc).

 

Rocket is totally true.

Usually company with low assets usually have more cash on hands though ( afterall, cash is an asset and when you don't have assets to sell in case you need extra cash, it's good to have the cash already there :P).