Google’s statement on Jan 12, 2010: A new approach to China
1. Why did Google issue the statement of January 12th?
- To be clear they are facing difficulties in their efforts made to provide great services to the Chinese users
- To tell people that they believe in and insist on freedom of speech and democracy on the web
- To tell the reason, which are that they are unwilling to tolerate censorship, and that they are threatened to exit China market
2. Can Google take comfort from the reactions of stakeholders so far?
Yes, I think they can. Today’s stock price of Google Inc. is $583.67 per share. However, in January 17, 2010, a year after their exit from China market, their stock price was as high as $639.63 per share, which is much higher than that when they exited the China market. Therefore, Google’s stock price has no business to do with their action exiting China any more. Even though it is not as high as their highest price in December 2007, it is normal.
Yes, stockholders don’t see this as a problem. However, other people/companies have mixed reactions.