Google GaGa!

April 19th, 2006
By Lucky7Star

©March 31st 2006

Google GaGa! Check this out!

Google about to print $2.1 billion by ZDNet’s Garett Rogers — Google has announced their plans to sell 5.3 million additional shares that will put an extra $2.1 billion dollars into their pocket.  What could they need this money for?  Google says it’s mainly to keep up with demand after their inclusion into S & P.Others say the funds could be used for acquisitions — one [...]

In the mean time:) Some may wonder why my Google ads are not appearing on any of my blog pages… Well the short and simple answer is, for lack of a better word GREED. I’m not just talking simple run of the mill steal the coins off a dead man’s eyes kind of greed… I’m talking “Google GREED”! This is beyond normal human tendency to horde coin but a megalomaniac bent on world domination conquest and control over cyberspace and beyond (Mars to the molcular Biopiracy) everything in the universe type of greed… What I call “Google Greed” because in the history of the world there has never been anything to compare. Add to that its almost like they own their own personal printing press… Stamping out money like new money mad men with their a new issue’s set to roll out the door at disgustingly inflated prices.

Rick Aristotle Munarriz over at the Motley Fool provides a few key insights when he notes that:

“Just minutes after Google (Nasdaq: GOOG) tacked on $17.78 a share — or 4.7% — on Thursday, the dot-com headline hog squandered most of those gains by announcing a secondary stock offering of 5.3 million shares.

Bad move.

The one thing that truly bugs me about this offering — beyond the timing — is Google’s ridiculous justification for the deal.

“This offering will partially meet the anticipated needs of index funds to purchase Google Class A common stock when Google is added to the S&P 500 Index at the close of trading on March 31, 2006,” reads the press release.”

“Um, what happened to letting folks buy shares in the open market and allowing the interplay of supply and demand inch a stock’s price higher? Wasn’t that what drove the stock higher last week, when the company was officially invited to join the popular stock index?”

Since Google has been selling at 42 times estimated earnings this pig has a profusion of blood to let… The lobbyist already know that there is a big party coming to town so Google’s going to need every cent of that 2 billion or so they raise (easy come easy go). Also yesterday it was announced that Google was hire a Republican lobby firm to help them with Congress (no doubt every Republican lobbyist within a oh say 2,500 hundred mile radius is sure to be clued into this one:) This is the same course that Keen’s Ingenio has had so much suscess with because so much of their revenue is generated by that Prince Per Click revenue stream but in order for it to work they have to have the fix set to prevent too much flack from disgruntled customers and clients.

It would appear like they are intent on building their cash reserve so they can go after all the law makers in Washington DC…. Well when they go to stealing Adsense dollars from people in the open source community they better know that their going to need every politician they can fit into their deep pockets… Such a blatant power grab is not going to stop their stock from taking a few torpedos but it will take more than a few to sink this Bismarck.

As far as a new paradigm… I would not go as far as to say that. They are working under a business model that was developed early on with some search partners such as MIRVA which has not enjoyed the support of the open source community such as Google, which in a word has been “phenomenal”. But should this extraordinary group of Geekdom come to feel that Google has dropped the ball that support will evaporate like the morning dew. There is also a number of issue surrounding this Captain Click concerning the copyrights of such things as keywords especially when it comes down to registered names… I think there is a wall coming up fast. Somesay its not the impact that kills so much as the sudden stop at the end:)