Risks Associated with Acquisitions

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 company Google, Inc., for the year ended December 31, 2006, available at the SEC’s Web site ( www.sec.gov ). The report also can be accessed through Yahoo Finance or the company’s Investor Relations page.




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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