Tuesday, February 05, 2008

Google’s Conniption Fit

Google (GOOG) recently issued a statement about Microsoft (MSFT) buying/rescuing Yahoo (YHOO). Apparently they are against it. Surprise? Then they went on to call the kettle black. In a statement that went out over the signature of David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer Google shareholders have now been informed that:

“the interests of Internet users come first --and should come first -- as the merits of this proposed acquisition are examined and alternatives explored.”

Dude investors are motivated by profits. No one every bought a stock so that the internet would be a better place. Products and services with compelling propositions will dominate and make profits. Your primary reason is to enhance shareholder wealth. If you do not believe this, check with companies whose earnings stumble. It’s not pretty.

There is a lot of information overload in the business media. Much of it is noise and not valuable information. But when the chief legal officer tells investors they are not first its very telling. I know Google will probably say something about values and stakeholders.

But do you think perhaps Google has shown an executive naiveté as they try to thwart an inevitable move.