What if the Chinese Government Bought Google?

[VetLegion]

This is not related to the current China-Google standoff, I'm just using
China as an example because it is rich enough and crazy enough.

Basically, since Google is a corporation with freely traded stock, anyone
who can muster $50 billion or so (I'm lazy to check) can buy the controlling
stake.

Given that much of my data (too much) is already with Google (I don't like
the fact, but it's so damn... convenient) I'm worried what could happen in
the event of a hostile takeover.

The Chinese government certainly doesn't care about my privacy, and by
reading my Gmail-stored correspondence they could easily gather enough
information to conquer the world, or at least to coerce me into spying
for them or something.

This occurred to me as I am to upload yet another album of photos from my
cellphone to Google's Picasa service. These are mostly photos of my city
which I take every day during my commute to pass time. They must not fall
into wrong hands, obviously.

Thoughts?

[DanS]

Google's shareholder voting structure was made like a newspaper's precisely for this reason (the Google Boys shares carry 10x the voting power). It would take much, much more than $50 billion for the Chinese to gain a controlling voting interest.

[Kontiki]

China (or any other party) can only buy a controlling stake if enough existing shareholders decide to sell their shares to them. I believe Page and Brin hold something like 60% of the voting stock and I'm sure there are several large pension and mutual fund companies that own another good chunk. I really can't see them selling out to the Chinese government. Alternatively, if the Chinese government offered a stupid amount for the shares, existing shareholders may cash out and just let the whole thing collapse.

[DanS]

See "Corporate Structure" at...

http://investor.google.com/ipo_letter.html

[VetLegion]

See "Corporate Structure" at...

http://investor.google.com/ipo_letter.html

Thanks. Just read it. I wasn't aware of that. It's somewhat reassuring,
though in the long run (five decades or so) who knows. Chinese are
extremely long term players, and who can say what Sergey's or Brin's
descendants might think about ideals of their parents. By that time
I'll be dead? Don't bet on it!

[DanS]

And by that time, China might not be a dictatorship.

[DanS]

See Google's proxy, which lays out the voting power as of February 17, 2009 at...

http://investor.google.com/documents/2009_google_proxy_statement.html

Under "Common Stock Ownership of Certain Beneficial Owners and Management," you will see all of the voting power. In addition to Brin and Page, who had 58% of the voting power, Schmidt had 10%.

But if you insist on being worried, I would look down to John Doerr, who had 2%. Doerr has expressed admiration for Singapore's model.

[notyoueither]

Singapore's model of...?

[Kitschum]

Benevolent dictatorship?

[pchang]

And by that time, China might not be a dictatorship.

And the US might be......

[Kitschum]

I don't think the US will ever transform into a dictatorship. You'll take your Constitution to the grave.

[Berzerker]

if China could buy it, wouldn't someone - like the sellers - start "Google This" to take China's business

[SlowwHand]

An answer to the thread question could be that a search for "*****" would hit on a photo of a cat.