Stock was under pressure yesterday in a rallying market, legal problems will not help its valuation which is already under constrain of falling multiple and slowing rate of growth. Another blow this quoter will come from strong USD when company will not be able to book a nice currency advantage from its international operations.
By JOHN R. WILKESeptember 9, 2008; Page B1
Washington -- The Justice Department has quietly hired one of the nation's best-known litigators, former Walt Disney Co. vice chairman Sanford Litvack, for a possible antitrust challenge to Google Inc.'s growing power in advertising.
Mr. Litvack's hiring is the strongest signal yet that the U.S. is preparing to take court action against Google and its search-advertising deal with Yahoo Inc. The two companies combined would account for more than 80% of U.S. online-search ads.
Google shares tumbled 5.5%, or $24.30, to $419.95 in 4 p.m. trading on the Nasdaq Stock Market, while Yahoo shares were up 18 cents to $18.26.
For weeks, U.S. lawyers have been deposing witnesses and issuing subpoenas for documents to support a challenge to the deal, lawyers close to the review said. Such efforts don't always mean a case will be brought, however."
Hi Sufiy,
ReplyDeleteGreat Google post. It's great seeing people tie together the legal and financial strings of a company.
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