Google's Corporate Campus / image from Blue Oak Energy
I’ve yet to see a successful Internet Roll-Up strategy executed and in my opinion, even a company as brutally successful as Google probably couldn’t pull it off.
Watching Barry Diller collect assets like Expedia, Hotels.com and AskJeeves only to start spinning them off in frustration was a cautionary tale for old media execs. Having witnessed Microsoft‘s absurd valuation for their Facebook investment, Ebay’s Skype debacle and even Google’s “extra-billion” spent on Youtube, I’d say that the jury is in on this type of m&a activity on the interwebs.
Giga Om tackles a set of potential future deals Google is in a position to make and offers up plenty of good reasons why they shouldn’t.
The four investments that Kevin Kelleher believes Google should avoid are:
Hulu
Ebay
Twitter
Facebook
For an explanation on why each of these potential deals would be a blunder, check out Kelleher’s breakdown of the pros and cons:
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I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
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