tag:blogger.com,1999:blog-8152901575140311047.post6667811744155151404..comments2024-03-18T10:18:19.736-04:00Comments on Musings on Markets: What's in a name? Of Umlauts, The Alphabet and World Peace!Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-8152901575140311047.post-31528031079239136142015-09-27T11:57:38.238-04:002015-09-27T11:57:38.238-04:00Google did operate through its google ventures arm...Google did operate through its google ventures arm where it invests in scallable tech startups through which it expects grow its revenue stream or exit , what i find interesting is the number of such startups where google has been successful to get a DEAL , although one can say google has been picky. <br />The reason being a simple one "if i am a tech startup , why should i take google venture's investment when i know they can learn quickly and make me redundant ." Am sure there are contracts which could safe guard.<br />But a spin off GV and a new name as a separate entity , with rationed money to invest in google's own or competing startups could create an environment of competition and remove slacks if that's the case within google and also would make it easier to compete with other VCs looking for good DEALS.Anonymoushttps://www.blogger.com/profile/13148501628193441667noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-53717047528379912282015-09-16T00:01:17.494-04:002015-09-16T00:01:17.494-04:00I wonder if alphabet is met to help with compensat...I wonder if alphabet is met to help with compensation. Maybe kids keep bailing out of Google for startups with big growth potential. Now alphabet can more easily issue stock in a subsidiary to employees and promise to spin out the division on a few years to give them liquidity. Employees maybe own 20% and alphabet owners have 80%. Employees get huge upside when they start instead or boring old Google stock that they can't move the needle on. Alphabet looks like a Loews with majority stakes in lots of public businesses. Anonymoushttps://www.blogger.com/profile/06583899242403170228noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-48141846748582434002015-09-15T14:57:43.848-04:002015-09-15T14:57:43.848-04:00Dear Professor - This question is entirely unrelat...Dear Professor - This question is entirely unrelated to the current post. <br /><br />After having worked as an analyst on the buy and sell side, I have never understood why analysts focus on margins so much? I mean, and please correct me if I am wrong, margins of a business only tell one-half of the story. <br /><br />Shouldn't we always look at ROIC instead which then captures both sides of the equation? So for example, if a company's margins are cut in half over time (perhaps due to a profound change in its business mix) but its balance sheet during the same period is cut by 90% (an extreme case simply to illustrate my point..), wouldn't that company be far more valuable to a prospective investor than one that had maintained or grown its margins but by disproportionately inflating its balance sheet? I hope I am articulating this well enough.<br /><br />Anyway, I hope that you might address this issue in the future (or if you have already, please let me know where? I think it's a very important one.<br /><br />Thanks!no namehttps://www.blogger.com/profile/01180488577665672291noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-31549091720674763252015-09-12T14:33:24.503-04:002015-09-12T14:33:24.503-04:00I think you severely overestimate the control Larr...I think you severely overestimate the control Larry and Sergey assert over decision of Google. Alphabet now has a CEO of Google and a CEO of Youtube.Siahttps://www.blogger.com/profile/05915856696281889732noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-23950369273456504292015-09-10T13:06:55.756-04:002015-09-10T13:06:55.756-04:00Bröd means Bread in Swedish :)
Thanks for a great...Bröd means Bread in Swedish :)<br /><br />Thanks for a great blog!GSPhttps://www.blogger.com/profile/13820391728465232989noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-50858355126202354872015-09-10T12:25:41.843-04:002015-09-10T12:25:41.843-04:00I recently covered Google's business structure...I recently covered Google's business structure change and the potential changes it will have on the company's financial reporting.<br /><br /><a href="https://www.linkedin.com/pulse/new-google-mantra-dont-transparent-joe-cabrera" rel="nofollow">https://www.linkedin.com/pulse/new-google-mantra-dont-transparent-joe-cabrera</a><br /><br />I see it largely as a move to hide their numbers under a consolidated balance sheet.Joe Cabrerahttps://www.blogger.com/profile/00712485985875414057noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-71334412716699401432015-09-10T10:22:33.667-04:002015-09-10T10:22:33.667-04:00Dear Prof - Thanks for memorializing this landmark...Dear Prof - Thanks for memorializing this landmark. I am a 1997 MBA and your student. This article brought back a lot of fine memories. I say fine because it reminded me how I always avoided going into the old time-warped coffee shop eye-sore and instead got my breakfast at that wonderful tiny muffin place on 4th street next to Stern (can't quite recall its name now but the muffins were loaded with butter and sweet as can be.) Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-11035596448109014462015-09-10T09:10:03.987-04:002015-09-10T09:10:03.987-04:00Professor, I have one suggestion not mentioned or ...Professor, I have one suggestion not mentioned or more accurately a variation of your reorganization idea. Ireland has passed laws, which are intended to phase out the "Double Irish" tax plan that Google has used for years to reduce taxes. While a reorganization for tax purposes alone would probably be stopped by the IRS, a reorganization that allows for tax advantages might be allowed. These tax payments affect cash flows, which impacts valuations. If people believe that Google will continue to have low tax rates when previously they saw them coming to an end, then an increase in stock price is completely rational after the name change. The impact of these changes is dependent on your tax assumptions, but there is an alternative narrative to this name change impacting valuations.Adamnoreply@blogger.com