Nobody has offered a better explanation of Google's mysterious announcement that it would augment its three-billion-dollar bank account with a secondary stock float worth four-billion dollars. The WSJ's argument (subscription required) sounds good to me: Google is doing this, and doing it now, because it can now, and might not be able to later. Allan Murray of the Journal believes GOOG stock has some bubble to it, and he believes that Page/Brin/Schmidt think so, too. when a stock is undervalued, argues Murray, companies buy it back. When stock is overvalued, companies sell it. End of mystery. Murray also cites insider stock sales and revealing changes in stock/option compensation.
WSJ: Google Selling Stock Simply Because It Can
Reader Comments
(Page 1)2. I think the name is "Schmidt" and not "Schidt", although "Schidt" is a rather funny pronunciation.
Posted at 4:42AM on Dec 19th 2005 by cnerd2025
1. I think the name is "Schmidt" and not "Schidt", although "Schidt" is a rather funny pronunciation.
Posted at 4:42AM on Dec 19th 2005 by cnerd2025