So by going private, a company like Tom Online can look more at long-term growth instead of the worried reactions quarterly reports might cause investors and the company's stock price. As a private firm, the company can also take a few more risks that may pay big dividends down the road.

     Another example of outside pressure was the deal Tom struck with Skype. At the end of March 2007, the company had over 35.5 million registered Tom-Skype users, up from over 31.5 million at the end of January 2007. Where is the money from this arrangement, investors have asked, and how will Tom monetize this relationship? Little information has been forthcoming from the companies most likely because this was a deal meant to build buzz, but not to generate immediate cash. Perhaps in a few years Tom can earn big money from this relationship, and it can do so best by being a private company focused on the horizon, and not the dashboard.

     When Tom Online goes private, it can also negotiate much more flexible governance arrangements with its investors. Strict Sarbanes-Oxley corporate governance in the United States is a big reason Chinese firms are now looking to London, Toronto, or Tokyo or opting for Hong Kong GAAP over the more comprehensive U.S. requirements. In fact, as I have said many times before, I am very certain we have a number of brewing catastrophic accounting nightmares waiting in the accounting books of a few listed Chinese Internet portals and technology companies. As a private company, its cash situation is just between itself and the tax bureau, and the more dubious a company's accounting seems to be, the better it is for the firm to go private.

     I wish Tom well on their move to go private, and I think that with the great liquidity reached by rivals Sohu.com, Sina.com, Netease.com, and China.com, they too should think about buying their public shares and focusing on building great products that will enhance China's economy instead of worrying about quarterly earnings reports and the value of their executives' stock accounts.