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What's Google Worth?

In light of today’s announcement by Yahoo Inc. (Nasdaq: YHOO) that it intends to buy Overture (Nasdaq: OVER) for $1.6 billion in stock and cash, eyeballs are now turning to Google’s next move.

Following Yahoo's merger with Overture, Google will be the obvious big independent player in the search market. But Google will also face a larger Overture/Yahoo Goliath, which could potentially put more pressure on it by lowering the prices of paid placement ads.

This means that Google needs to quickly gain more mass and competitive edge. The paths to quick growth are usually merger or public offering. Google has so far shunned Wall Street’s call for an IPO. But now that its two largest competitors are merging it may have to rethink things.

Adding more pressure would be the raft of private investors in Google who might now want to cash out during the mini-boom.

Silicon Valley has been speculating for months about when Google would IPO, if for no other reason than the company is one of the few bright spots amid the technology depression...

Get the full analysis at Boardwatch.

— R. Scott Raynovich, US Editor, Light Reading

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