With AOL Deal, Google May Get to Go Public Again

Consider: AOL and Yahoo made hay when Google went public. Both owned substantial stakes in Google due to earlier traffic deals, and both cashed out major paydays after GOOG's IPO. Consider also: The success of Ask Jeeves, from the time it tied its revenue fortunes to Google at around…

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GooglogoConsider: AOL and Yahoo made hay when Google went public. Both owned substantial stakes in Google due to earlier traffic deals, and both cashed out major paydays after GOOG’s IPO.

Consider also: The success of Ask Jeeves, from the time it tied its revenue fortunes to Google at around $5 a share (July 2002) to the point at which IAC purchased them at nearly six times that. Google did not own a piece of Ask, but given that Ask’s fortunes rose as soon as it did a deal with Google, I bet it wished it has asked for some Ask back in 2002…

So now consider this: Google is not going to make the same mistake. Why invest $1 billion in AOL? Well, should AOL go public, Google stands to profit – a lot. The company knows that by guaranteeing its business to AOL for the foreseeable future, it has in essence guaranteed AOL’s bottom line, providing a healthy earnings forecast for AOL and Wall St., should Time Warner decide to spin its erstwhile child back out as an independent public company.

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Yow. Don’t Jump the Shark, Google

From the Times coverage: Google, which prides itself on the purity of its search results, agreed to give favored placement to content from AOL throughout its site, something it has never done before. If this is true, AOL will once again be the ramp over which a major company…

SharkFrom the Times coverage:

Google, which prides itself on the purity of its search results, agreed to give favored placement to content from AOL throughout its site, something it has never done before.



If this is true, AOL will once again be the ramp over which a major company jumps the shark.

Update: Or, is this just a trial balloon?

Trialballoon

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More Details: AOL and Google Now Exclusive, WSJ Claims

From here (paid as usual): Time Warner Inc.'s AOL and Google Inc. have entered exclusive negotiations over a deal that would have the search giant pay $1 billion for a 5% stake in AOL, deepening their advertising partnership, according to a person close to the situation. The talks shut…

From here (paid as usual):

Time Warner Inc.’s AOL and Google Inc. have entered exclusive negotiations over a deal that would have the search giant pay $1 billion for a 5% stake in AOL, deepening their advertising partnership, according to a person close to the situation.

The talks shut out Microsoft Corp., which has been wooing AOL since January.

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Gauging The Size of the Google Economy

A Fortune Small Biz reporter, Justin Martin, called today and among other questions asked one that I did not have a ready answer for. But it seemed like a very good question, and it'd be neat to have an answer. In short, he asked, how big is the Google…

CashA Fortune Small Biz reporter, Justin Martin, called today and among other questions asked one that I did not have a ready answer for. But it seemed like a very good question, and it’d be neat to have an answer. In short, he asked, how big is the Google economy? We bounced it back and forth, and what he meant by that phrase is the aggregate amount of direct economic impact Google has on businesses large and small. Not an easy thing to nail down, but often you can create useful proxies if it’s Friday and you’re trying to avoid real work.

I was thinking that you might take Google’s gross revenue number, which is projected to be more than $6 billion this year, and then the estimated number of AdWords customers, which I realize I don’t have a reliable number for. The last time I wrangled something out of Google was two years ago, when it was about to cross 200,000. So, assuming decent growth (say 25% a year), we’re now at what, nearly 300K (OK, 281K, but for all intents and purposes…).

OK, stay with me. I’m not a quant, which is why I’m doing this in public. I know there are quants out there reading, and there are folks with access to better base case numbers, not to mention better ideas about how to do this.

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Senate Blocks Extension of Patriot Act

Now *this* is good news. The Senate on Friday rejected attempts to reauthorize several provisions of the USA Patriot Act as infringing too much on Americans' privacy, dealing a major defeat to President Bush and Republican leaders. In a crucial vote Friday morning as Congress raced toward adjournment, the…

Now *this* is good news.

The Senate on Friday rejected attempts to reauthorize several provisions of the USA Patriot Act as infringing too much on Americans’ privacy, dealing a major defeat to President Bush and Republican leaders.

In a crucial vote Friday morning as Congress raced toward adjournment, the bill’s Senate supporters were not able to garner the 60 votes necessary to overcome a threatened filibuster by Sens. Russ Feingold, D-Wis., and Larry Craig, R-Idaho, and their allies. The final vote was 52-47.

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Hey, Let’s Sue the Interface!

From Dan Miller at MacWorld: Walter Ritter is the developer behind pearlyrics, a nifty little Dashboard widget. It did one simple but very useful thing: It searched the Internet for the lyrics to the song you were playing in iTunes, displayed those lyrics on the Dashboard, and copied them…

From Dan Miller at MacWorld:

Walter Ritter is the developer behind pearlyrics, a nifty little Dashboard widget. It did one simple but very useful thing: It searched the Internet for the lyrics to the song you were playing in iTunes, displayed those lyrics on the Dashboard, and copied them into the song’s iTunes Lyrics field. It certainly wasn’t the only lyrics widget out there, but it’s the one that several of us here at Macworld liked.

Unfortunately, pearlyrics is no more. Last week, Ritter received a letter from Warner Chappell Music—“one of the world’s largest music publishers,” its Web site proudly proclaims—telling him to cease and desist. Being a modest freeware developer with no legal budget, he did.

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Journal Reports that Google Has AOL Sewed UP

Now this would have been a very interesting deal to be on the inside of. I can only imagine the back and forth and the stakes being raised. If what the Journal is reporting (Paid reg) is true, somehow Google has outbid/outmanuevered Microsoft. This says a lot about what…

Now this would have been a very interesting deal to be on the inside of. I can only imagine the back and forth and the stakes being raised. If what the Journal is reporting (Paid reg) is true, somehow Google has outbid/outmanuevered Microsoft. This says a lot about what Google views is important. I can say it in one word: Traffic.

From the brief article:

Time Warner Inc. has entered exclusive talks with Google Inc. over a partnership with AOL, apparently shutting out Microsoft Corp. and other suitors, according to people familiar with the situation.

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Google and MSFT Bury Hatchet at Berkeley

From the AP: Google Inc. and Microsoft Corp. are setting aside their bitter animosity to back a new Internet research laboratory aimed at helping entrepreneurs introduce more groundbreaking ideas to a mass audience. ADVERTISEMENT Sun Microsystems Inc. also is joining the $7.5 million project at the University of California,…

From the AP:

Google Inc. and Microsoft Corp. are setting aside their bitter animosity to back a new Internet research laboratory aimed at helping entrepreneurs introduce more groundbreaking ideas to a mass audience.

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Sun Microsystems Inc. also is joining the $7.5 million project at the University of California, Berkeley. The Reliable, Adaptive and Distributed Systems, or RAD, lab was scheduled to open Thursday and will dole out $1.5 million annually over five years, with each company contributing equally.

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A Search Panel Podcast

Last week the MIT Enterprise Forum gathered leaders from GYM (Google Yahoo Microsoft) for a panel discussion. The sold out event is now up as a podcast. From the site: The panel, led by Safa Rashtchy, includes leaders in Search from Google, Microsoft and Yahoo!, and will be balanced…

Last week the MIT Enterprise Forum gathered leaders from GYM (Google Yahoo Microsoft) for a panel discussion. The sold out event is now up as a podcast. From the site:

The panel, led by Safa Rashtchy, includes leaders in Search from Google, Microsoft and Yahoo!, and will be balanced by long-time Search pioneer and researcher, Oren Etzioni of the UW Turing Center.

Panelists

Urs Hoelzle, Google Fellow, VP of Operations

Gary Flake, Microsoft, MSN Technical Fellow

Eckart Walther, Yahoo!, VP of Yahoo! Search Products

Oren Etzioni, UW Professor, Madrona Venture Group

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