Forum Moderators: goodroi
We can speculate as to what they might spend the money on, but hard facts will be difficult if not impossible to come by. I would think that Google will be looking in large part to keep Microsoft out of their business, to expand their PPC revenues, and perhaps to become more relevant as a portal to help drive search traffic and perhaps ad revenues.
All pure speculation from an uninformed outsider ;)
Why would someone buy stock in McDonalds?
They don't have to.
If people are willing to buy shares in companies that lose money - they will buy shares in a company like Google that make a profit and they can see the potential.
As john316 pointed out "Why would someone buy stock in McDonalds?"
It is the same process here.
People buy stock in companies they think are going to make them money. As Mardi pointed out, even public companies will not go into that much detail about their plans - as they have competitors they don't want to tip off.
The instant the stock hits the market - if not before - tons of mutual funds will buy this stock in order to rachet up their tech and other mutual funds. With a trend towards indexing - many funds will just buy this stock for no reason other than it is out there.
These companies will spend millions on a stock they have done zero research. Google will have no problem selling their stock - and therefore have no reason to give out any more info than needed to do so.
An example, as to why M$ went to IPO.
Microsoft did not need to go public. It certainly did not need the money. By 1985, largely on the strength of its MS-DOS operating system, it had cash of $38 million and was earning more than $27 million per year. Bill Gates was reluctant to have Microsoft go public -- as reported in Fortune, he worried that it would be a "pain":.......
However, Microsoft had granted so many stock options to so many employees that it feared that by 1987 it would have 500 stockholders and be forced to register under Section 12 of the Exchange Act. Rather than let that happen to it, Microsoft decided to call its own shots and go public when and how it wanted.
From here: [corplawblog.com...]
Same reasons..G has 1000+ employees...and to woe the best of talents, they would have given stock options..so it is plausible, G would sooner or later reach the 500 stockholders mark.
Why would someone buy stock in McDonalds?
Because they expect McDonalds is going to do things to create more profit. New stores, new products, advertising.
What I'm asking is: What is Google going to do with the investment money to increase its profit? If no one knows, how about some theories?
These companies will spend millions on a stock they have done zero research. Google will have no problem selling their stock - and therefore have no reason to give out any more info than needed to do so.
Right. I know lots of people will buy the stock. My question is, what is Google going to do with the money? R&D in what? Purchase what companies? Expansion how? Compete with Yahoo and MSN how?
No one has any theories about what course Google will be taking?
I'm sure your theories are as good as anyone else's. Have any?
I'll put you out of your suspense.
They are going to IPO, so they can raise money for the following:
1, Buy DELL the pc maker.
2, Buy a # of start up technology companies, so those companies are no longer a threat.
3, Buy Googleguy a new identity.
4, Give $1 billion in free adwords vouchers.
all the above costs money, which at present they dont have to complete the above.
Shak
I'm sure your theories are as good as anyone else's. Have any?
Nope. And I'm surprised no one here has a single theory as to what they're actually going to do to make that stock everyone will be buying worth more than its purchase price.
