Google Loses Mad Money on AOL Investment; Maybe it Should Hire Jim Cramer?
I’ll be honest, I’m not much of a stock picker. If I invest in a company, invariably the stock price declines. It seems I share my talent for destruction with Google.
AP is reporting that Google has filed notice that it believes its $1 billion (5%) investment in Time Warner’s AOL unit is a dud.
[Google told] the Securities and Exchange Commission that the 5 percent AOL stake that it bought in 2005 “may be impaired.” Impairment is an accounting term used to describe an acquisition or investment that has eroded.
“There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material,” Google said of its AOL investment.
Google didn’t say what it believes its AOL investment is now worth, but speculation is that it may be as much as 50% less than the $1B it invested. Last time we checked, analysts gave AOL a total value of less than $7 billion.
I wonder if Cramer will see this post. I’d love to get his thoughts on AOL, wouldn’t you? Boo-yah!