Tuesday, July 10, 2007
Google Buys Postini
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.