Google's Motorola acquisition is just a 10% premium over their 2011 high (jeffreytalajic.com)

The idea that Google went bargain hunting would be stronger if anyone genuinely believed that what has happened to the market in the last couple of weeks is short term.

The reality is that before the recent drop stocks were over valued so all he's really saying is "they only paid a relatively small amount above a previous over valuation".

I never understood this notion that the "fair value" of a company is somehow tied to anything but the price of its stock. If the fact that a stock used to be worth more than it is now means that it's somehow under priced then you'd have an easy arbitrage strategy on your hands. Google paid a 63% markup even though this author spins it as though they paid only 10% above some "true value".

by that logic when microsoft was trying to buy yahoo a couple of years ago they were getting a huge discount compared to the 2001 high. Microsoft should have really upped the offer.