February 24, 2012
Apple CEO Says Company Thinking About How To Spend Cash Pile
During a shareholder's meeting on Thursday, Apple's CEO Tim Cook said he and the rest of the board are getting close to a decision on what moves it will make with its $98 billion bank account.
Cook said the board and management are thinking "very deeply" about where the world's most valuable company will spend its money.
Some speculate that Apple will be dipping into the account to pay shareholders a dividend sometime this year.
Apple stopped making shareholder payments in 1995 when it was facing bankruptcy, and co-founder Steve Jobs kept accumulating cash for the company throughout his reign as CEO to ensure its survival.
Cook told shareholders during Thursday's question-and-answer meeting that the money is "more than we need to run the company."
Apple has collected $98 billion in cash and investments, and has grown to be the world's most valuable company with an all-time high stock price that has reached above $500.
Some analysts have suggested for the company to buy a film or television production business to help support its ambition in the industry.
Apple has spent a little bit of its money, including a recent $50 million acquisition of a three-year old start up called Chomp.
This purchase will allow Apple to use Chomp's technology to improve the App Store's search and app discovery technology.
Apple also bought up Israeli flash memory firm Anobit for about $390 million earlier this year. This company is a key flash memory controller for the iPad and iPhone.
At the shareholder's meeting, Cook also said that Apple will now require its directors to win a majority vote before being elected to the board. Directors who do not secure a majority vote will have to resign from their position on the board.
On the Net: