Thursday, August 19, 2004

Robert X. Cringely on Google, post-IPO:
Look for the company to accelerate its acquisition pace with a strong emphasis on acquiring smaller companies with interesting technologies. Don't expect any big mergers for Google. And don't expect them, either, to use much if any of that cash since another benefit of going public is they can now buy companies with stock. The cash won't be used for expansion, won't be used to cover necessary losses as the company enters new fields, it will be used as a get-out-of-jail-free fund in case Google stumbles and needs to reinvent itself. That's the Microsoft model of cash management, by the way, and was actually invented by David Packard of HP back in the 1960s.

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