With Google breaking through $400 last week, BusinessWeek must have felt obligated to put the company on the cover this week. The thrust of the story is that with $120-billion market capitalization, Google has tremendous buying power and, as a result, it's changing the M&A, venture capital and start-up landscapes. What I found disappointing is the story's lack of depth. For example, it talks about how Google could easily make a mega-acquisition but then fails to identify potential targets that would be sense. (AOL, eBay, Knight-Ridder, etc?) Tell me why Google should or should not buy AOL. Instead, the magazine rolls out the usual suspects such as Piper Jaffray analyst Safa Rashtchy who says "If they were to buy AOL or Ebay, it would hurt the stock". That's fine but why would iit hurt the stock and what does it matter in the short-term if you're acquiring an attractive asset that can potentially provide you with long-term growth and strategic flexibility. Wouldn't investors applaud a move that would protect Google from losing the 12% of sales it now gets from AOL? To puncuate the story's shortcomings, it wraps up by talking about some "glaring holes in [Google's] product lineup". What are these mysterious holes (content? services? technology?) Why are they so glaring? Wat should Google do to address them/resolve them? Reading the BusinessWeek story felt a lot like having dinner and feeling hungry an hour later.
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BusinessWeek's Bobbles Google Story
by
Mark Evans
on Sat 26 Nov 2005 07:37 AM EST | Permanent Link
With Google breaking through $400 last week, BusinessWeek must have felt obligated to put the company on the cover this week. The thrust of the story is that with $120-billion market capitalization, Google has tremendous buying power and, as a result, it's changing the M&A, venture capital and start-up landscapes. What I found disappointing is the story's lack of depth. For example, it talks about how Google could easily make a mega-acquisition but then fails to identify potential targets that would be sense. (AOL, eBay, Knight-Ridder, etc?) Tell me why Google should or should not buy AOL. Instead, the magazine rolls out the usual suspects such as Piper Jaffray analyst Safa Rashtchy who says "If they were to buy AOL or Ebay, it would hurt the stock". That's fine but why would iit hurt the stock and what does it matter in the short-term if you're acquiring an attractive asset that can potentially provide you with long-term growth and strategic flexibility. Wouldn't investors applaud a move that would protect Google from losing the 12% of sales it now gets from AOL? To puncuate the story's shortcomings, it wraps up by talking about some "glaring holes in [Google's] product lineup". What are these mysterious holes (content? services? technology?) Why are they so glaring? Wat should Google do to address them/resolve them? Reading the BusinessWeek story felt a lot like having dinner and feeling hungry an hour later.Comments
Re: BusinessWeek's Bobbles Google Story
by
Anonymous
on Sat 26 Nov 2005 06:27 PM EST | Permanent Link
dude, imagine the amount of revenue myspace sends google..reportedly close to or more than aol....
dinesh@geometricmap.com Re: BusinessWeek's Bobbles Google Story
by
Penguin
on Sun 27 Nov 2005 03:05 PM EST | Profile | Permanent Link
I love Google... I don't know if I $400+/share love Google... but I love Google none-the-less. But what drives me crazy is this current notion that Google IS the Internet. Google is a very popular and very good application of the Internet... but that is all that it is, an application.
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