REDF and SIFY
have tons of cash from their recently concluded secondaries-the companies would do well to acquire good Internet outfits in India for a combination of cash and stock.
This is the time to consolidate their leadership position and prevent upstarts from taking away business. Yahoo in it's beginning stages of growth made some very smart acquisitions-Broadcast.com, Overture and Inktomi come to mind. That helped it become a larger, more diversified company-and the services offered were complimentary to each other-enabling great cross-selling opportunities. Overture is the jewel in Yahoo's portfolio-and is the only major competitor to Google's domination of search based advertising. Smart acquisitions are a great way to build shareholder value in fast growing markets like the Indian Internet Sector.
The folks at Google want to make it a $100B dollar company (in revenue). Google has about $6B in revenues per year right now-and they want to take it up 15 times. A bit of a stretch, I think.
But you can't blame Google's management to be over-optimistic, they have had a tremendous product with great dollars being made for their customers (Internet publishers) and of course the company shareholders. Once in a while humans are allowed to get carried away...
Sanjay John G.