“Oppenheimer’s remark is aimed directly at one of Google’s principal assets – its share price. In essence, Oppenheimer was telling Google shareholders that its management had overspent for this acquisition; if its shareholders agree, Google management would have one slightly less effective weapon in its arsenal,” Hickins writes. “Even in an all-cash deal where the acquiring company’s share price doesn’t directly come into play, buying a company with a higher P/E multiple would be dilutive to the acquirer’s earnings, and thus markedly less attractive to shareholders.”
Full article here.
Apple CFO Oppenheimer says Google spent ‘a lot of money’ on Motorola Mobility – August 17, 2011