Private equity

The Alphabets Of Google

The Alphabets Of Google

Google has become inevitably intertwined with much of the Internet. At its core, there is its search engine business, the world’s most widely used, facilitating more than three billion searches each day and generates the majority of Google’s revenue. The company also owns YouTube and Android, two subsidiaries that are leaders in their own fields.

Over the years though, Google’s leaders decided that being an Internet based technology company wasn’t enough. So came a slew of ventures into different businesses that operated outside Google's core. These very different, wide ranging ventures all came under the banner of Google Inc. Some were very profitable, while others were not. All of them were in separate industries from Google’s core business.

This inevitably led to Google’s investors clamoring for greater transparency. This can lead to potentially unprofitable ventures being stifled out by investor activism, something we've seen happen many times before.

 

Uber Bubblicious

Uber Bubblicious

50 billion dollars. That's how much Uber wants to be valued at, according to the most generous backers of a company they believe will revolutionize the world of private hired commuting. The $50bn private valuation will become a utopian mirage of sorts if Uber raises anywhere from $1.5bn to $2bn in additional funding.

The news was announced by the company earlier in May, and was greeted with polarized reactions. If Uber secures that bout of additional funding, it will officially become the world most capitalized privately held business.

We at Business Of Finance are natural skeptics of the accounting wizardry and phony math which obfuscates rather than clarifies the fair value of startups. By eschewing reality from fiction, anyone can cook up numbers of fairies and unicorns on their inconspicuous books.