Google says using cash for merger spree unlikely: Financial News - Yahoo! Finance

"Google Inc. (NasdaqGS:GOOG - News) is spinning off growing mounds of cash from operations, but Chief Executive Eric Schmidt appeared to rule out seeking big mergers or making other dramatic changes in how the company uses cash."

"Speaking to investors at the Morgan Stanley Technology Conference, Schmidt was asked by analyst Mary Meeker whether Google would consider changing course on how it uses cash.

"It is highly unlikely," Schmidt said. "One of the problems in high-tech industries is that successful companies tend to generate cash pretty liberably (but) they don't have good places to put it."

He added that, while Google itself is generating a mounting pile of cash, "it is not obvious to me where it would go."