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Investing

Will China Buy Google And GE?

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By Douglas A. McIntyre Published
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Reuters is speculating that the Chinese investment in Blackstone is just the beginning.

"The Blackstone deal is as much about education on how to invest as it is about the actual investment itself," Reuters quotes James Oberweis, president of Oberweis Asset Management Inc., who oversees an $800 million China fund as saying.

The Chinese have an investment pool of about $1.2 trillion. The would allow them to buy GE (GE) at $380 billion, Microsoft (MSFT) at $300 billion, and Exxon (XOM) at $470 billion.

Now, if the Chinese learn anything from Blackstone, it is that a fund does not use its own money. It borrows. In a typical buy-out, the private equity firm might put in 10%. So, the available capital may be $10 trillion or more. Chinese banks could loan the government the balance.

The Blackstone investment is set to touch off a $10 trillion stampede into the US buy-out market.

Maybe not.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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