Google Rebuffs Microsoft Takeover Bid
Chris Gondek writes "The Sydney Morning Herald has posted that Internet search leader Google has rejected a takeover bid from Microsoft in favour of selling its shares directly to the public. According to The New York Times (Login Required), Google wishes to sell only about $US2 billion worth of shares to the public."
It's turns out that Google IS being bought by Nestle!
Here's the link to the story. I guess Nestle just offered too sweet of a deal to pass up.
Only $2 billion dollars....if only i could talk about money like that
Looks like the management at Google understand the situation. Only selling about $2 billion USD will get them the funds they need to expand, but without the risk of a hostile takeover. Let's just hope that the voting shareholders don't defect to Microsoft. Or to anyone else.
SCREW THE ADS! http://adblock.mozdev.org/ Proud user of teh Fox of Fire - Registered Linux User #289618
Well, looks like Google just throw down the gauntlet against Microsoft. Now, it is time to see whether public support or big money business will win out.
And as a side note, let's buy Google stock when they come out to show our support.
In US, you can easily buy enough major firearms to wipe out your neighbourhood but a few little fireworks are banned.
I can not imagine anything more evil that microsoft + google. Microsoft would be unstoppable.
Fear.
Davak
It's good to hear that the people running google have as much practical business sense about them as the people running the machines have technical sense. This is how things should be done - don't put your entire worth out there on the market for investors to decide, hold back and prove your company worth through your product.
~/ssh slashdot.org ssh: connect to host slashdot.org port 22: too many beers
Damn, if i'd had 2 billion dollar I wouldn't need Google. I'd had some naked petrified girls doing all the searching for me...
Remains to be seen how real the takeover offer was in the first place. Microsoft has thousands of employees and 50 bil in the bank, which pretty much allows them to develop any search technology they want and hire the best people in the industry.
Even the purchases that Microsoft has made usually reflect either small companies with little capital and some interesting technologies (Connectix), or medium-size companies with tons of clients that Microsoft wants access to (Great Plains, Navision). Seeing Microsoft buy Google would also raise all sort of anti-trust concerns due to Google's dominance.
While among the Silicon Valley startups the popular way to get attention is to announce that Microsoft is interested in takeover. Strange to see Google succumb to this tactics of boosting the pre-IPO evaluation price, but perhaps I am wrong on that.
I prefer the chocolate-covered gold coins myself.
you know, google is the first thing on the internet (not just the web) that i think has actually changed my life is some way. i use google probably 30 to 40 times on a regular business day, searching for certain strings and letting it do the hard part for me. if i didnt have google, or anything exactly like it or better, i would be really grumpy for a very long time. if google ever sold out and became a crap factory, it'd be a dark day on the intarweb. fortunately i didnt get the vibe that's about to happen from the nyt article.
slashdot: where everyone yells sarcastic metaphors to themselves to understand the issue
Google will be an immensely popular stock-selling only 2 billion in shares will create a gigantic demand, with a smaller supply, and thus I'm wondering if Google's going to just open up their shares for trade on an exchange like most companies do...
Something I certainly see as being possible is that Google could put up shares for sale in public auction. Think about it, why wouldn't they? It would make sense-the shares would be worth more because of the supply/demand aspect, and in addition, it would be dually serving eBay, which I believe Google has some ties to(as they do to most web companies).
In addition, Google could put up shares for charity--what a better opportunity for them to showcase themselves, and benefit some organization at the same time?
The most important thing to remember about Google's IPO is that they are worth quite a bit, and they may just sell their shares in a most unusual way.
Besides...it's Google!
There's a good piece up over on The Register that talks about how Google and Microsoft would make great partners.
"Max, come over here. French-Canadian bean soup. I want to pay. Let them leave me alone." - Dutch Schultz
But their announced ambitions to "reinvent" the IPO market, avoiding classical underwriting and directly auctioning their shares, really is too much. The comments are more than presumptuous and pretentious. They are sophomoric.
Isn't it enough to be the first company since 2000 to mount a successful IPO of an Internet-based business, with enormous multiplies applied to forward revenues, toward a $10 billion plus valuation? The idea that an Internet company, among all the companies out there, will fundamentally reinvent the way that public offerings of this magnitude are done in the U.S. is laughable.
As Google is run (and currently owned) by smart people, I think that the company's discussion of auctioning its shares is a way of making a lot of noise, and heightening speculation -- in the face of obvious interest by the Microsoft Corporation. It is intended to raise the issue of its valuation in a big, very public way, and enhance the prospects of a Microsoft acquisition at the highest possible cash amount.
It is certainly not intended to build good will on Wall Street. It's hilarious to think that the way to exert influence on Wall Street is to suggest ways to fundamentally undermine the revenue streams of the leading investment bank underwriters.
I just thought what a cluster the size of google's would be like running windows... imagine the spread of viruses, worms and spyware... every single person on the planet searching via an engine which is helping to spread the love....
the end of the world would truly be nigh.
The reason girls and Windows users don't understand UNIX is because all the documentation is in Man files.
I'm guessing that investors will go crazy once again having an Internet stock to bet on. This will push the value of the stock up through the roof as we've seen happen with past companies. By only putting out a small percentage (less than 1/10th of the company) it will also unduly raise the total percieved value of the company exponentially.
The problem is that though most industries have a set valuation on shareholders equity in regards to a multiple of earnings, Google is in a league of their own. This allows investors the opportunity to become speculators and instead of looking at the fundamentals and I predict we will see claims of Google becoming as big as Microsoft on paper.
Early investors will cash out at that point (as the article mentions) and the rest of us are left holding the bag. However those early investors will now have cash to start the process again and we may very well see another albeit smaller run on Internet stocks with the momentum generated by Googles rise to power.
Football Sports Contest - Win $500 for having an e
"It was a summer's tale: Just a boy, his Linux, and a head full of dreams..."
admittedly i have some strange ideas about our economic/social systems. i'm a fan of debian and spend time every day trying to figure out how to get rid of corporations as legal entities with no real personal liability.
caveats aside, i really think the US Gov should buy google. maybe i'm just a mindless stallman bot, but i regard the google service as a public good. in fact, if google were to go away tomorrow, i'd become immediately unemployable. i've heard the same thing from other techies, non-techies, and even anti-techies.
just the thought/hoax of microsoft buying google would ruin me, and i'd have to make good on my promise after hearing bush won the election and actually leave the country.
i've seen too often on slashdot similar "i can't live without google" commentary so i know i'm not alone.
i'm not here to tell you that the US Gov should entertain buying companies lightly, or that there isn't a good chance that they would ruin google on their own. as i understand it, google isn't really offering itself for sale anyway, buy why screw around? what i am saying is that google has bought itself alot of time with such a great service. however, it will eventually fall prey to abuse on the street if they go that route, or some other bad economic time.
i'm not the only person who was disappointed at redhat's decision to end-of-life their free products after only months (12? i'm sure some slashdotter will correct me). it was the motivator for me to convert hundreds of machines i supported from redhat to debian. i understand the decision by redhat, the _company_, to earn and maintain a profit. if they go away eventually sobeit. if we lose sun, no problem, it will happen anyway.
i'm not so cavalier about google. its a public good and we need to protect it.
thoughts?
the government would ruin it (whether liberal, moderate or conservatives in power at the time)..."naughty" searches (by whatever definition) being flagged, "naughty" results being censored, etc.
RedHat is still giving away a "free" (as in gratis) distribution. But maybe Federa seemed too "bleeding edge" for you? I'm giving it a test spin on my home box & it's pretty good so far.
The other search engines are useful, though google is my favorite. It is interesting sometimes to compare the results each give on a topic. The world would not end should something happen to google.
The fact that it's survived along the sides of Amazon who's first profit was not until 1/2002 and E-bay who's a different beast altogether show that the companies that are doing 'the different' are the ones who are setting the pace and maintaining their own quo's without Wall street intervention.
If you recall Wall Street intervention is what built up the tech sector bubble and the same thing that ultimately burst that same bubble.
The fact that google has survived so long is why it's such a hot stock and a hot topic, they didn't need the advice or the help from the Wall Street guru's other than the fact that Wall Streets greed for the company is going to set the price higher than what it would have been. Which is genius from any shareholder viewpoint (supply demand and control). So essentially Google is writing their own history rather than letting the Wall Street vultures write their obituary. If that's not reinventing the IPO market then what is?
Let's keep in mind that patents are in place to keep lawyers employed and keep them litigating. -CatGrep
So we managed to dodge one bullet, forgive me if I am not jumping up and down. Not only could M$ still try to gain controll over google, We all saw problems with google earlier when they fanagle search results for no good reason.
We all love google we use it every day, but it must be replaced. Replacing google has two problems the software and the hardware. The software is by far the easier one, the general techniques that google uses are well known, and the good guys don't have a shortage of good programers.
The Hardware requires money, a lot of it if you want to compete with google. IMO the solution would be to design a system capeable of working efficiently on a google like setup with dedicated linux clusters around the globe, but also capeable of taking advantage of every half stable server someone can donate somewhere on the globe.
Initially search times would be slow, but money can be raised, to add the servers necessary, A free google alternative must and therfor will be produced.
Me.
I think Google can afford to lose all 2500 of you.
that the article you reference doesn't KNOW how google makes it's money, they GUESS.
Google is a private company, and does not have to disclose where it's profits come from, so it's just speculation based on observation.
It sounds reasonable.. but isn't necessarily true.
It must have been all the geeks of the world simultaneously exhaling sighs of relief.
Ok, so I guess now that Google has declined the buyout, Microsoft will declare war on them. They'll probably buy one of the lesser search engines, church it up a bit, slap some generic name on it like "Pinpoint" or "Searchlight" or some shit like that, market the hell out of it, and make it the default for every possible search function that exists in Windows.
Then can you explain why Microsoft opted to buy Hotmail instead of developing their own webmail system?
At the time of purchase Microsoft was looking for a search engine and free e-mail. Hotmail was way ahead in the free e-mail rivalry, and since MSFT was going into ISP business to fight AOL, a free e-mail system would boost both Web properties, name recognition and ISP portion of MSN. I think they figured marketing costs into acquiring that many users and figured it was worth it.
If Google was up for sale for 300-500 mil, my suspicion is that MSFT would be there in a jiffy to get a deal. When we're talking billions, you've got to take things into account, like what exactly are you paying for? Google has the largest index, 3.3B pages and good search technologies for Web, images, groups and whatnot. Can you replicate the huge index? Yeah, with some investment in the million-dollar range. Can you replicate the search technologies? More or less yes, with people you already have.
Or why Yahoo! and AOL are still kicking MSN's ass all over the place
Define "kicking ass". MSN was profitable as of last quarter. Yes, took a while to get there with gazillions of dollars spent, but it's in the black now. MSFT has to report to its shareholders on profitability, not market share. I personally use Yahoo! services and prefer them to MSN, but since I don't pay for Yahoo! Mail or Briefcase or Launch videos, I fail to see that MSN is losing money, except some ad revenue.
Other than that I agree with most of the things you've mentioned.
its not hard for me to imagine such an organization.
-- self funded. advertising dollars in their current form could go a long way towards (or completely) paying for pipe and power
-- free expertise. the expertise to run the system already exists in the open source community.
-- free software. it already runs on linux so there aren't any licensing issues that i know of except for continued use of google's magic algorithm.
-- great engine for employing some people who should be employed. its not hard to imagine 1/4 to full time employees who are also maintaining the linux kernel, writing apache, maintaining postgres, or keeping the optimized network drivers smoking.
as an ancillary note, i've thought for awhile that the US Gov should perform some "directed welfare" whereby they offer some paltry salary to a group of (see list above... kernel/apache/etc.) whereby their salary would be rediculously low by even todays market standards, and the developers would be incredibly happy a. not to have to work for a traditional company and b. to be making _any_ money doing what they love.
the recent rampant failures of the power grid makes me wonder the same thing about a similar model being applied to that system. surely there are ReallySmartPeople who have the design/architectural expertise who aren't driven by money and are interested in working on the hard problems. i know a few people who are at the forefront of their industry. one in particular is a biomedical engineer who would keep working on the same problems whether they were in the context of running a business or being involved with a not for profit. i see the same thing in the open source community.
getting back to my earlier comments about getting rid of companies in their current form--- i'm just not convinced they are the best engine for continued technological advancement. especially in the code areas where the hard parts are so cheap.
and as i'm beginning to see in the development of the "World Intelligent Network" (as google is a very early form of) a company in the traditional sense isn't the best vehicle for that either.
I think it's kind of silly to claim everyone is being dense when they say google is a "search engine bussness". Google only started selling advertizing on other sites a couple months ago!
Before that, they only sold advertizing on their own site. They were advertizing, sure. But that's like saying slashdot is an 'advertizing site', or Law and Order is an "advertizing show" or something.
autopr0n is like, down and stuff.
If, for whatever reason, Google becomes crap and no longer worth using, something will come along to replace it, and will most likely be even better.
You suggesting that the United States government should have control over the (currently) most important search engine in the world, is somewhat laughable, and sad. In fact, it is a sure prescription for Google's immediate failure and inability to adapt to the market, as is evidenced by the poor quality of every public service offered by the government when compared to their private sector counterparts.
I'm glad that Google decided to maintain their independence, but what would be so bad if they were taken over by MS? After all, it is the decision of those who currently own Google, not ours. They're going to make a decision based on what they think is good for them and their company.
social sciences can never use experience to verify their statemen
If I buy stock, do you think they'd take my suggestion to offer a torrent search (similar to Google Images, maybe) more seriously?
hotmail was a great service and I had an account when I was in college. I remember the day that I found out that microsoft was taking over hotmail. I signed up for a yahoo account. I held on to my hotmail to see if the quality of the service would drop. It was ok for a while, then I saw rumors of microsoft trying to convert hotmail over to its technology. The service started becoming very unreliable, it sometimes took 3 months to get an email through. To this day, the service still has problems, it took many years for them to get the service to the point that you could rely on it again. Microsoft has never release any information on the hardware required to run hotmail. I would speculate that the cost of the software/hardware to run hotmail most likely would make the service infeasible by anyone but microsoft since hotmail probably either gets the software for free or at a discount. The hotmail switch was made in order to prove microsoft's technology to other people. The amount of $$$ spent getting it to where it is today must have been staggering.
Now look at google. They use about 8000-10000 linux 1u servers to run their software. Imagine how long it will take microsoft to switch google's software over to their technology. And the cost? Will it even be possible with 1u servers? Or will they need huge 32 processor unisys servers running windows datacenter? google will go down the tubes if microsoft takes them over because they will try to port google's software from the linux platform to the windows platform, and money will be no object.
Hopefully, google won't sell out.
On a side note, it makes microsoft look pretty desperate since they were bragging about working on technology to defeat google just the other day. Apparently it must be a much more monumental task than they originally envisioned...
I want to be clear on what you're asking for here. You actually desire a situation where you send the government a list of things you happen to be interested in on any particular day?
well , lets say microsoft bought google. 1.Google will be shipped only with Microsoft products.google updates would suck. 2.This will anger open source guys and in turn they would work on a project Freesearchengine. 3.MS will make changes to google glorifying his products and lessening the quality of search 4.Eventually Opensource community will win bringing a better search enginethan google.[google-MS additions] So this is just a passing phase for us !! Lets wish google remain a king as it is !!! Cheers
Hello , this is my way.
Which way is yours ?
btw there is no right way
The DNS registry worked great under the govt. When it was privatized it went to hell.
War is necrophilia.
This guy is good. Formerly the CTO at Overture. Now with MSN Search.
where to start ......
....
lets see
okay firstly Linux adoption is not regressing, as a matter of fact research shows it has only nominally slowed in the US.
Apache's popularity is not declining, and since you brought it up I want statistical proof of that claim, and dont point to netcraft, it is wildly inaccurate.
SCO's lawsuit has accomplished nothing, as a matter of fact if SCO loses (and it looks like they will according to lawyers) they will be helping linux and the GPL by eliminating this threat so early in their life span, and also by testing the GPL in court, thereby giving precidence.
PS2 faces stiff competition sure, but its still winning.
Oracle hasnt even been touched by MS, Oracle's only real competition is DB2, and in some markets mySQL. Microsoft doesnt make anything that even runs on 64 bit proc's yet(Or a REAL OS). let alone some of the more elite features of Oracle, that comment is laughable.
I'll grant you the IE comment. however microsoft has attempted the search engine thing before, and failed. miserably. every stinkin time.
"Two things are infinite: the universe and human stupidity; and I'm not sure about the the universe." --Albert Einstein
Google needs to stay clean and as independent as possible until
the grow about 10x. At that point, they've got something that's
-really- interesting.
If they have even the smallest partnership with M$, it will poison
them and they will die, as it has poisoned all of those companies in the past.
M$ involvement would only be good for M$, not for Google's users,
it's customers, or the company itself.
It will be difficult to resist temptation up to the 10x point, but by
then even M$ will be marginalized. Should be fun to watch.
Good luck guys. Keep it pure.
"ok, let's see here, sir. Please enter your search request on three copies of form 1144-EZ and you'll get your results back in 4 to 6 weeks. Neeeext!"
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Then I searched MSN
RESULTS (TOP 6)
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If you follow the google links you can actually easily find out linux distros and learn about lots about linux. All and all it goes to show how a search engine can slant results in favour of a company. To alow MS to take over internet search is like sending the mouse to see the cat.
OH THE SHAME I fell off the wagon and use sigs again!
How about all those other search engines that work reasonably well? Would it be fair to these other companies to have a government subsidized search engine?
-jq
Best bit would be if Google goes with doing its own share offering, then uses the software to provide similar services to other companies.
:-)
Hey presto, Google now takes business from Saloman, JP Morgan, CSFB etc. Now _that_ would be an interesting market development. I've always thought that the IPO business was a bit archaic.
So there's my prediction: Google uses its own IPO as a way of developing / testing share offering software to allow it to enter the market and compete with the big investment banks.
What about those of us who do not live in the states? I would not like that all this power goes to a country. US is not better to me than MS. What about a more neutral entity, which is supposed to care about us, and not only about you?
What about the UN? What about the UNESCO? If it is a public good, then why shoud it be public=US, and not public=humanity?
(Just a thought).
My journal. Mainly about freedom.
Oh, I had the exact same idea as you! Except the year was 1996 and the site was Altavista. Couldn't live without it. Thank Goodness the government didn't nationalize and subsidize them making the emergence of Google as a successful, profitable, private, limited liability corporation next to impossible. But now that we have Google maybe we should reconsider your plan, I mean, nothing could ever get better than this, right?
Sure, Google may have come from nowhere to become profitable while providing a huge amount of value not only to the people who risked piles of time and money on the enterprise, but also to the public at large and their customers. But of course mutual benefit through voluntary association and private property just usually isn't possible in a capitalist system, this is an anomaly and it must be protected.
I also rely on Debian daily for job related activities; I know a lot of people who do. Maybe final decision making power for Debian should be removed from the technical committee and developers and transfered to an appropriations committee of the US Dept of Commerce. I mean, can we really risk such an important piece of technology to a bunch of private individuals. I even heard that one of the former DPLs played a major role at a major corporation in the motion picture industry, while he was involved with Debian!. We all know how greedy and untrustworthy that type is; there is no way of telling how he may have subverted Debian when he had control of it.
Ok now that I've pulled my tongue out of my cheek, could I ask you to put down the Adbusters and spend time every day really thinking about these wonderful things that we rely on and where they came from? Also think about the real freedom to innovate and how that could start to be lost.
And if you do the honourable thing and keep your emigration pact with Alec Baldwin, please don't come to Canada.
Metamuscle.com - News in the Iro
It's not important whether Google is the best search engine or not, and whether or not they can maintain the technical lead.
What IS important is whether they manage to maintain SUFFICIENT quality that they can maintain or grow enough of a userbase that their marketing and sales force manages to grow their ad revenue.
What also matters is whether they restrict their tech. spending to only what is needed to maintain that position, rather than going overboard and insist on trying to be the best whatever the cost - it might very well be better for business to let someone else take the lead and copy what they do, even when factoring in the risk of patents restricting them.
The point is the search engine business is mostly an advertising business. They need eyeballs and clicks, and that is as much based on reputation, marketing and inertia as it is on technical excellence.
(Disclaimer: I work for Yahoo, which owns lots of search engines that competes with Google)