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What Will Google Use $2 Billion For?

Posted by: Rob Hof on March 29, 2006

As if it doesn’t already mint money, Google’s raising $2.1 billion more in a new offering. You sure don’t need this kind of money to develop Web services, do you? So maybe the question is, how many more Web 2.0 startups just got a new lease on life? Or does Google have somewhat bigger prey in mind now?

Update: A lot of folks here and on sites that track back to this post assume I’m suggesting that Google is the most likely acquirer of Facebook. Actually, I tend to doubt it, at least not at anything near $2 billion. Yahoo! seems like a more likely acquirer. Guess I was trying to be too clever, sorry about that. On the other hand, I have to think that this wasn’t done merely to help institutional shareholders. Even if a Facebook acquisition is unlikely, I don’t doubt many others are on the table.

Reader Comments


March 30, 2006 2:30 AM

Sounds like tulipmania to me....

Nathan Waters

March 30, 2006 2:40 AM

Yep, I'd say they're going for Facebook.

They would have seen the massive growth and "bargain" Murdoch obtained Myspace for, and so are probably regretting they didn't buy up a similar site.


J. Smith

March 30, 2006 8:58 AM

we gotta ditch google. it is getting too big and too invasive!


March 30, 2006 9:38 AM

I agree with Nathan above, buying facebook makes a lot of sense, all those users, all that demographic data. Imagine Google toolbar that allows facebook users to post automatically without visiting site. Definately a smart move on Google's behalf, assuming of course it does happen.


March 30, 2006 10:23 AM

Perhaps they are going to purchase facebook. However, I don't think they'd pay near $2 billion for it. Most of that money will be for other resources and projects. No one would pay $2 billion for facebook - no one.

Michael Ewens

March 30, 2006 11:48 AM

They are simply issuing more Class A shares for the index funds that hold the SP 500, which they are going to be joining soon. Blogs make people speculate too much.


April 4, 2006 10:36 PM

I disagree, Cais... someone might fork over the $2 billion -- there are many fools out there. But google isn't known for being foolish, and I doubt they'll make that move.

But whoever buys it should act fast, in a few years, Facebook will be overpopulated with middle-aged alumni, crawling with married guys checking out 18 year olds in skimpy outfits ... and the kids will have to find something new :P.

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.



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