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why2kit: For that size of a depository relationship other type of financial vehicles would be set up such as "Repo accounts" where Google would be buying Government securities on a daily basis to get around the FDIC insurance limits. The rate would not be much higher than 1% <Rates are really low at the moment>
Powdork: Good point, but for short-term funds that are already allocated like the adsense payables to publishers. They must be highly liquid, they are not really available to invest in the company. Sure you can argue that using them for short-term working capital financing it would lower the need for funds for the business, but the stronger argument is against it. In addition, my educated guess is that Google has enough cash flow not to risk using money that they need to pay in a very very short time.
Suppose $30,000,000 X 8%/365=$6,575/day.
Thats almost as much as I make from a good day with adsense.;)
Powdork = My new internet friend :)
Wow! I just got my January check today. I have never, ever gotten it this quickly. Check is dated 02-23-04, postmarked 02-24-04 and arrived 02-26-04. In the past the check would not have even been mailed for at least another week.
Good job Google.
[edited by: 401khelp at 1:44 am (utc) on Feb. 27, 2004]