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0 pointsSJC_Hacker1y ago0 comments

> On what are you basing your opinion that this is a "great deal"? Google is going to have to earn close to $100B in profit attributable to this acquisition over the next 10 years in order to financially justify it.

Maybe like the Motorola acquisition - not so much the profit attributle from the acquisition but the profit they *won't* lose by not acquiring them.

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diogofranco1y ago

I don't think that 100B number is correct. It would be if Google had to give back the business (or it imploded) after 10 years

otterley1y ago

That $100B is a based on a ballpark estimate of how much a passive investor would expect to earn by putting $32B of their money into a high-yield stock fund (yielding 15% per year, which is a conservative annual growth rate for a cloud provider) and sitting on it for 10 years. If Google can't do at least as well as that, the investor would be better off with the stock fund.

diogofranco1y ago

Yes but I'm saying that they will still own Wiz at the 10 year mark, so you can discount their valuation at the time from the 100B.

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0 pointsSJC_Hacker1y ago0 comments

Maybe like the Motorola acquisition - not so much the profit attributle from the acquisition but the profit they *won't* lose by not acquiring them.

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diogofranco1y ago

I don't think that 100B number is correct. It would be if Google had to give back the business (or it imploded) after 10 years

otterley1y ago

diogofranco1y ago

Yes but I'm saying that they will still own Wiz at the 10 year mark, so you can discount their valuation at the time from the 100B.

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