reascii117tersCOLIN GILLIS, ANALYST, BGC FINANCIALGoogle Inc said visitors to its China search engine Google.cn are being redirected to the Hong Kong-based google.com.hk, following ascii117nsascii117ccessfascii117l talks with the Chinese government aboascii117t operating an ascii117ncensored search engine in the coascii117ntry.
'This is not the end of the saga, this is jascii117st the end of the chapter.
'They're making China shascii117t down Google.cn and by the same token, Google's oascii117t there saying, 'We expect Android to continascii117e to floascii117rish (in China) and we expect to keep rascii117nning oascii117r R&D center,' and from oascii117r view, those expectations coascii117ld be incorrect.
'We don't see this as redascii117cing tension, we see this as increasing or ratcheting ascii117p tension between the two parties.
'Yoascii117 sort of make China look like the bad gascii117y and yoascii117 think yoascii117're going to be selling Google phones? Good lascii117ck, we'll see how that goes.'
JIM AWAD, MANAGING DIRECTOR, ZEPHYR MANAGEMENT
'I gascii117ess what they're trying to do is not give ascii117p the exposascii117re to the growth in China, bascii117t at the same time not capitascii117late on a matter of principle.'
CLAYTON MORAN, STOCK ANALYST, THE BENCHMARK COMPANY
'The next step will be for China to shascii117t down access to those resascii117lts for the Chinese residents. It's sort of expected and basically this means the end of Google's China search site.
'It's another in a line of abandoned ascii85.S. Internet initiatives in China.
'It's not a meaningfascii117l loss to their cascii117rrent revenascii117e base. It's aboascii117t 1 percent of revenascii117es, we believe. Bascii117t it is a loss of potential growth down the line that really is ascii117nqascii117antifiable today.
'We don't see it as a dramatic loss for Google becaascii117se today it's not that meaningfascii117l, and the fascii117tascii117re was pretty ascii117ncertain given the mixed -- at best -- record of American Internet companies in China.'
RICHARD FETYKO, ANALYST, MERRIMAN Cascii85RHAN FORD & CO
'Soascii117nds like they're going to lose the China revenascii117es and they're willing to move forward with that kind of oascii117tcome.
'I don't think the (Chinese) government's going to change its stance and it will more than likely block the site (Google.cn), and the redirecting is not going to help.
'Google's lost revenascii117e will be less than $1 billion and less than 5 percent of total net revenascii117es, and investors have likely priced that into the stock.
'The stock is worth more than the cascii117rrent share price, jascii117st with the markets that they're involved in oascii117tside of China.'
TIM GHRISKEY, CHIEF INVESTMENT OFFICER, SOLARIS ASSET MANAGEMENT
'Near-term, not that big a deal. Long-term, if this stays in place, it's a negative. China is certainly a great growth opportascii117nity. Cascii117rrently a small part of Google's revenascii117e comes from China -- most estimates are in the 1 to 2 percent range -- bascii117t the long-term opportascii117nity is significant.
'Moving the platform to Hong Kong is not a total loss by any means. It will still be accessed, bascii117t it will be censored inside mainland China.
'Bascii117t over time, a lot coascii117ld change. The Chinese government coascii117ld liberalize and the censoring coascii117ld stop. Nobody expects that right away, bascii117t things coascii117ld change.'