http://www.makeyougohmm.com/20070416/4413/ Technology, music, video, art, news, reviews and muse on the web Tue, 02 Dec 2008 04:06:15 +0000 http://wordpress.org/?v=2.2 http://www.makeyougohmm.com/20070416/4413/#comment-520068 Davis Freeberg Mon, 16 Apr 2007 15:53:38 +0000 http://www.makeyougohmm.com/20070416/4413/#comment-520068 I think that the deal makes a lot of sense to Google, but I also think that it's an admission that Google can't maintain their growth rate through pure organic growth. While the acquisition is chump change as far as Google goes, if I was a shareholder I'd only feel about 30% comfortable about seeing my shares diluted from the transaction. In the long run, I'm sure that this will end up being a great deal for the company, but I am a bit surprised to see the markets responding so positively to the short term ramifications from the deal. Google has been an internet juggernaut, but the bigger the company gets, the harder it will be for them to continue to impress Wall St. I don't think their growth run is over by any stretch of the imagination, but their stock has certainly slowed down over the last year or so and it will become harder and harder to maintain their growth rates without buying more companies, as they get bigger. I don't think that bad things are going to happen to Google, but at these levels, I'd be a little cautious, especially with so much selling going on, every time the stocks spikes. I think that the deal makes a lot of sense to Google, but I also think that it’s an admission that Google can’t maintain their growth rate through pure organic growth. While the acquisition is chump change as far as Google goes, if I was a shareholder I’d only feel about 30% comfortable about seeing my shares diluted from the transaction. In the long run, I’m sure that this will end up being a great deal for the company, but I am a bit surprised to see the markets responding so positively to the short term ramifications from the deal. Google has been an internet juggernaut, but the bigger the company gets, the harder it will be for them to continue to impress Wall St. I don’t think their growth run is over by any stretch of the imagination, but their stock has certainly slowed down over the last year or so and it will become harder and harder to maintain their growth rates without buying more companies, as they get bigger. I don’t think that bad things are going to happen to Google, but at these levels, I’d be a little cautious, especially with so much selling going on, every time the stocks spikes.

]]>