4/16/2007

Google buys everything for nothing

I know there is a lot of talk about Google buying DoubleClick for $3.1 billion pipping Microsoft who were eyeing the same for around $2 billion. Google did this as the deal will extend it's online advertising reach even further, combining it's ad platform and publisher monetization services with DoubleClick's ad campaign management skills. More importantly, it did this to prevent Microsoft from getting an easy entry into this space. Microsoft, Yahoo and Amazon have been left with sour grapes..but was it a wise price to pay?

Well, me thinks so because whenever you see Google make an acquisition, it's stock price shoots up (happened during all the big, publicized acquisitions) and the rise in price more than compensates for the price it buys the companies for :)..Jab bhagwan deta hai, chappal phad kar deta hai (When it rains, it pours :)). The last I saw regarding Google's stock price rise today was 1.7% which is almost equivalent to what it paid and still going up...Sorta like a very fast mail-in rebate?

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