Google's CEO searches dire economy

Posted Mar 4th 2009 8:20AM by Tom Taulli
Filed under: Management, Google (GOOG)

Every week, there seems to be a new book that extols the magic of Google (NASDAQ: GOOG). There is even a book called What Would Google Do?, which tries to apply Google principles to a range of businesses.

In fact, even with the plunge in the global economy, it seems that Google is impervious to the real world. Right?

Perhaps not. Interestingly enough, there was some negativity from Google's CEO, Eric Schmidt. This is according to a presentation he gave at the Morgan Stanley (NYSE: MS) tech conference.

Schmidt thinks that the economy is "pretty dire" and that the online ad market will get hit. Yes, the mighty Google will not be "immune."

Yikes.

Hey, if Google can't deal with the current situation, who can?

Although, the grim tone of Schmidt should not be a surprise. After all, the company is far from small and really can't hide as many verticals – like travel, real estate, autos, financials and so on – have gotten crunched.

So, what is Google going to do? Apparently, it looks like the firm's M&A efforts are dormant (because valuations appear too frothy). But, at the same time, Google sees huge opportunities in China as well as mobile. And with billions in the bank, the company can certainly make some nice long-term bets right now.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a free online business valuation tool for small businesses.

Tags: eric schmidt, EricSchmidt, GOOG, inthenews

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Reader Comments (Page 1 of 1)

3-04-2009 @ 9:55AM

BHarrison said...

All of these economic frauds and "imbalances" have to be "settled out" somewhat before "recovery" and opportunities can occur.

Meanwhile, with the economy, the markets, home and commercial property values, sales, etc. still dropping significantly, no one perecives there being any REAL OPPORTUNITIES to invest in . . . or at least darn few of them.

The longer the goverrnment keeps the failed FIs and corporations propped up with bailout money, the longer it will take to get to the point where "recovery" and opportunities are perceived. Our nation is caught between a "major crash" by too many massive failures, and the proplems that are exacerbated by prolonging everything by wasteful government actions.

No one seems to have "the answer" or an answer to this critical dilemma.

Meanwhile the CORRUPT CEOs and CORRUPT Congressmen are STILL in charge of the "recovery" efforts . . . and Congress is propping up the FIs and Corporations that orchestrated and perpetuated all of the FRAUDS that have undermined our economy.

Congress has not passed any NEW effective regulations, nor have they enhanced the effectiveness of the oversight of the SEC and other regulatory agencies oversight.

As with AIG, the Congresmen are classifying the FIs and corporate Frauds as having been their "taking advantages of "gaps" in the regulations . . .". Well what about the blatant FRAUDS that have been perpetuated at the same time that the CEOs, the Boards of Directors, and other uppermanagement personnel were receiving exorbitantly excessive salaries, bonuses, and other compensations while totally mismanaging the corporations.

This all smacks of CRIMINAL FRAUD to me. Some/many of the Congresmen are trying to infer that it was simply the CEOs taking unconscionable and unethical "advantage of "gaps" in the regulations (that Congress failed to address . . . even while these special interests were making significant contributions to the Congressmen's political campaign funds.)

This all appears to be "CRIME & CORRUPTION" to me personally. Yet, none of these "CRIMNAL" CEOs have been indicted, nor has the government attempted to freeze and to return these ill gotten salaries and other compensations to the corporations.

To those who would decry this as being violations of our democratic and capitlaistic principles, I would point out that the middle and lower class Americans have certainly been defrauded in all of this . . . and who gained the ill gotten "profits" from all of this? We already have substantial "adjustments" against the middle and lower classes; it is time to redistribute some of this ill gotten "wealth" from the top 3% of the nation who have come to own 90% of the wealth of our nation. We need "adjustments at the "top" as well as at the "bottom" of our society.

The USA cannot afford to have ANY corporation that is "too big to fail" . . . that is an ABSOLUTE PROVEN FACT! Why isn't action being taken to use the Anti-Trust Laws to break up these "mega-corporations" that have undermined our national economy with their frauds.