Problem

Risks Associated with AcquisitionsAnalysisNot all business combinations are successful, an...

Risks Associated with Acquisitions

Analysis

Not all business combinations are successful, and many entail substantial risk. Acquiring another  company may involve a number of different types of risk. Obtain a copy of the 10-K report for Google, Inc., for the year ended December 31, 2006, available at the SEC's Web site (www.sec.gov). The report can also be accessed through Yahoo Finance or the company's Investor Relations page.

Required

On page 21 of the 10-K report, Google provides information to investors about its motivation for acquiring companies and the possible risks associated with such acquisitions. Briefly discuss the risks that Google sees inherent in potential acquisitions.

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Solutions For Problems in Chapter 1.C