I thought the share class structuring of Google was such that you can never own Google by buying its publicly traded shares?
Right. Based on the erroneous theory that every single share of a company is publicly available and in the float.
Google Will Eat Itself
21–30 of 139 posts
Re: Google Will Eat Itself
#22Theoretically, isn't it the case that the more successful they are in generating clicks, the more successful Google becomes, pushing the share piece higher and further out of their reach?
Re: Google Will Eat Itself
#23FYI, in many European countries periods and commas in numbers are the reverse of how we use them in English- 405.413,19 is actually 405,413.19
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Re: Google Will Eat Itself
#24This is a pretty genius idea. Use Google to buy Google stock. With the current share price, buying shares isn't exactly cheap. But collecting cash from their service is an effective way to reap the benefits of corporate growth in another way. Similarly: buying Tesla (TSLA) stock when it was cheap because you couldn't afford the Model S....and now you can afford it. That being said, it would seem that there would need…
Right, and the sites have to be profitable, and they have to not be spam (otherwise, your revenue stream will likely eventually be shut off).
Re: Google Will Eat Itself
#25Woo click fraud!
which is incredible easy to do and very hard to prosecute... so guess what is the life blood of the industry
Re: Google Will Eat Itself
#26This is a pretty genius idea. Use Google to buy Google stock. With the current share price, buying shares isn't exactly cheap. But collecting cash from their service is an effective way to reap the benefits of corporate growth in another way. Similarly: buying Tesla (TSLA) stock when it was cheap because you couldn't afford the Model S....and now you can afford it. That being said, it would seem that there would need…
I can't find it now, but I remember seeing a picture around the time AAPL was rising fast (~2011-2012) that showed how much money you'd have if you had bought the equivalent amount of Apple stock that a given Mac cost when released.
So, if you had bought $2000 of AAPL instead of a snazzy Macbook Pro, you'd have X now.
Re: Google Will Eat Itself
#27Given how long it's been since this was last updated, I wonder if they're still having any success. It seems Google are probably getting better at fraud handling quicker than they can innovate their fraud - and close to 10 years seems like Google would have a huge advantage by now.
Re: Google Will Eat Itself
#28For every impression/click payout that the clandestine "GTTP" network garners, Google the company will also have earned some profits off advertisers which'll be transferred to Google's bank account or used to build more infrastructure.
However, suppose GTTP compromise a significant or even 100% of GOOG's total ad payout; there are three possible scenarios:
a) if Adwords is operating at a loss (a la PS3, unlikely), the shares of GTTP will decrease massively, thereby depressing the shares of GOOG. However if GOOG wants to facilitate the transfer of the company of GTTP, it'd continue to operate at extreme loss by transferring more money to GTTP via Adwords loss until the shares goes down minimally $0.001 on OTC market (a la LEH). Then GTTP can acquire a worthless asset.
b) Adwords is generating a net profit more than the payout to GTTP. Net profit not in terms of net income but in the sense that the profit/intangible valuation of Google's use of revenue from GTTP's generated ads to build out infrastructure and human resources. GTTP's activity will then boost the shares of GOOG, given that GTTP generate a fixed amount of money for GOOG; using discount cashflow model, that means whatever GTTP's income cannot outpace the GTTP-GOOG Adwords unit's constantly rising valuation. (Think of this using a shareholder's dividend to cannibalize the company; or using a child's allowance to buy his/her parent).
c) Adwords is generating a net profit but less than the payout to GTTP. Basically a company distributing the bulk of its net profit to shareholders as dividend than using it to reinvest in R&D/infrastructure. In practice, GTTP's internal shareholders would likely revolt given GOOG's business model of growth (vs. say sleepier industries such as utility). But let's suppose say for the sake of the argument, that GTTP shareholders are agreement to cannibalize GOOG, they can do it! Given that the accumulated annual income generated by GTTP outpaces the market valuation of GOOG. (Think of WhatsApp founders cash out of 16B of FB stock or Mark Cuban with Broadcast.com at the height of YHOO's valuation, and the valuation of GOOG or FB decrease enough and/or they kept siphoning income to buy the company at a later time.)