August 7th, 2004

classic cylon

Google is blowing it

They're in trouble with the SEC over unregistered shares they issued, their IPO price is too high, they haven't come up with a convincing roadmap, they're targets of DDoS attacks and click fraud, they're facing multiple lawsuits ... you get the idea. I wonder if they will even IPO. The markets, and tech stocks in particular, have been taking a beating the past few weeks. That plus their other problems makes for an unfavorable IPO climate.

I don't get it. Why is Google blowing it? Hasn't there been enough destruction of once high-flying companies that they realize it could happen to them also? You only need walk a few blocks from the 'plex to see empty buildings that once housed popular companies. Sure, some of them were inflated by the dot-boom, but still ... it seems to me that Google would be extra careful to manage their business affairs on the eve of their IPO.

In contrast, Ask Jeeves seems to have quietly built a respectable business. You don't hear anything about SEC violations, lawsuits, etc. with regards to them ... it's just search, for the most part ... doing things their customers and users want them to do. I wonder if they are the model for a search business ...
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