Google Loses Mad Money on AOL Investment; Maybe it Should Hire Jim Cramer?

Friday, August 8th, 2008 by Andy Beal

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!

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8 comments on “Google Loses Mad Money on AOL Investment; Maybe it Should Hire Jim Cramer?”

Fifty Studio Says:

August 8th, 2008 at 11:26 am

Can you imagine what it would be like to randomly lose $500 million?
Andy Beal Says:

August 8th, 2008 at 11:45 am

@Fifty – lol – I’d probably check down the back of the couch for it.
Otilia Otlacan Says:

August 8th, 2008 at 12:01 pm

AOL seems to be a hot potato right now, with all the rumors of Time Warner considering selling it…

Otilia Otlacan’s last blog post..It’s Google ?Put Your Child in a Kennel? Day!
Nicole Price Says:

August 9th, 2008 at 1:49 am

I cannot stomach losing even fifty dollars. Google is just making a lot of noise to protect its own valuation.

Nicole Price’s last blog post..Discount DVDs
delade | Google Loses Mad Money on AOL Investment; Maybe it Should Hire Jim Cramer? Says:

August 9th, 2008 at 5:49 am

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Utah SEO Pro Says:

August 9th, 2008 at 3:09 pm

only 50%? more like 90%

Utah SEO Pro’s last blog post..Mobile SEO – SMX Local Mobile 2008 Presentation
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August 9th, 2008 at 10:24 pm

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August 11th, 2008 at 2:30 am

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