How to be a billionaire without any real cash?

Somebody really needs to call Forbes on this: how can two guys who are co-founders of a privately held company which at best had $900 million in sales last year be worth a billion each. You know the Google twins, Sergey and Larry. The magazine’s latest list puts the duo at #552 in the list.

First the fuzzy stuff, i.e. the what ifs: assume that tomorrow something goes wrong, another new cool search engine comes to the market and takes away traffic form Google, or for that matter someone discovers that Google is in patent infringement or something like that. (Well these are what ifs?) What if the stock market tanks, and the Google IPO does not happen? Are the toothsome twosome worth a billion each then? Will the venture capitalists who put money in the company take Sergey and Larry’s stock off their hands at those valuations? I fail to understand how does a script which does not trade anywhere on the stock markets, and is still a ill-liquid quantity be worth a couple of billion dollars. This is “froth” being valued against real hard assets of real billionaires.

This is not the way of the capitalist tool I know! This clearly in new kind of math. Anyone have a clue?


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