Tuesday, July 10, 2007

 

Google Buys Postini

All I have to say is why? And for how much? For all the good Google does, they sure do some stupid shit. What about that Urchin buy a few years back? You Tube? Seems to me Google has more money than they know what to do with.

So far, the last three purchases have been for somewhat viable entities, that were way over valued and way overpriced in terms of a revenues, even at a 10 times annual multiple. So far, with each purchase Google has systematically destroyed those viable businesses.

In each case however, each of these businesses really did not make any money. One had no assets (You Tube) and absolutely no source of sustainable revenue. My guess is that Google is buying these properties to mitigate tax liabilities down the road, ie., writing them off as a loss, while at the same time, eliminating any possible competition. As if...

Smart plan after all.. Kudos there Google.

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