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Apr-21-2008Microsoft, Google chiefs back in the ring(topic overview)
CONTENTS:
- Shares in Google, the darling of the technology sector in 2007, saw its shares reach a peak of $741.80 in November last year, making it the fifth biggest U.S. company by market capitalisation. (More...)
- Then the idea would be for Yahoo! to use Time Warner's money to buy back a few billion dollars worth of stock for somewhere between $30 and $40 a share to pacify investors watching Microsoft and its money walk out the door, which could crush Yahoo's stock. (More...)
- The company said that aggregate paid clicks rose some 20% over a year ago and around 4% above the fourth quarter 2007. (More...)
- Cheviot Financial said it earned $97,000, or 1 cent per share, down from $206,000, or two cents a share, in last year's first quarter. (More...)
- Yahoo! is reportedly getting closer to that controversial deal that would outsource its search advertising to Google. (More...)
- Yahoo Search Marketing and Internet media firm Media Corporation have partnered to provide search results and advertising across Media Corp'''s extensive publishing network. (More...)
- Google's performance indicates the internet's advertising market - expected to generate $US44 billion in worldwide spending - remains robust, especially outside the United States. (More...)
- The company has also been unable to challenge Google ( GOOG ) as the leading seller of text-based search ads, the biggest segment of the multibillion-dollar online ad market. (More...)
- "Imagine an app platform that's cognizant of all of your devices. (More...)
- Despite all that, AdSense continues to grow at a marginal growth rate of 3% per quarter. (More...)
- The share surge was driven by the first-quarter results Google made public yesterday. (More...)
- The owner of the most popular online search engine, said first-quarter profits rose to $1.31bn, up 30% from the same period a year ago. (More...)
- '''We're obviously pleased with another strong quarter,''' said Eric Schmidt, CEO of Google, in a conference call on''April 17. (More...)
- After the tepid response for Yahoo's search, Ballmer said jokingly: "Wow! We offered 31 bucks a share." (More...)
- Nearly two-thirds (62%) of all search queries worldwide were through Google. (More...)
- In all, the company has raised more than $100 million, including funds from potential users like Procter Gamble. (More...)
- From GoogleEarth to Virtual Worlds, what was once perceived as a simple search engine has become a complex web of businesses, evoking memories of Yahoo!'''s own all-things-to-all-people ambitions. (More...)
- For the moment, there is nothing interesting to report on the Microsoft-Yahoo saga. (More...)
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Shares in Google, the darling of the technology sector in 2007, saw its shares reach a peak of $741.80 in November last year, making it the fifth biggest U.S. company by market capitalisation. Since then, its shares have been hammered on worries that it faced an advertising slump amid mounting evidence that the U.S. is slipping into a recession. The California-based company makes money when internet surfers click on the paid-for-links on the right hand side of the website which takes them through to the adverts. Recent data from research firm comScore showed that fewer web searchers were viewing these, fanning fears that the company's best days were behind it. Its upbeat results suggest the reason for this reflects a deliberate reduction in the number of ads on each search results page to deliver to advertisers better matched visitors who are more likely to buy their products. Analysts say Google's strong performance could strengthen Microsoft's resolve to buy Yahoo even if it means raising its $44.6bn offer - a move that it has so far rejected. [1] When it reports first-quarter results on April 22, Yahoo has perhaps a last chance to demonstrate some financial strength and progress it has made in stabilising the company's internet media and advertising business after two years of decline. Mid-week, Yahoo is set to complete a test with Google on whether Google should run a piece of its Web search ad sales, a move sources familiar with the talks say is part of a plan to merge with Time Warner's AOL and fend off Microsoft. Despite mounting time pressures - and veiled threats by Microsoft to walk away from the deal if it drags on - Wall Street analysts say they expect neither side to blink. Microsoft sees the massive merger as necessary for both to effectively compete with mutual arch-rival Google.[2] When it reports first-quarter results on Tuesday, Yahoo has perhaps a last chance to demonstrate some financial strength and progress it has made in stabilizing the company's Internet media and advertising business after two years of decline. Mid-week, Yahoo is set to complete a test with Google Inc (GOOG.O: Quote, Profile, Research ) on whether Google should run a piece of its Web search ad sales, a move sources familiar with the talks say is part of a plan to merge with Time Warner's (TWX.N: Quote, Profile, Research ) AOL and fend off Microsoft.[3]
Yahoo! and Google have completed a preliminary test for a search ad outsourcing deal, a new report suggests. According to the Wall Street Journal, Yahoo! is closer to a deal that would see its search advertising business outsourced to Google after the test yielded positive results. Such a deal could give Yahoo! increased resistance to Microsoft's $31 (16) -per-share offer to buy the web pioneer.[4] Google and Yahoo are reportedly moving closer to striking an advertising deal that could foil Microsoft's takeover bid. The proposal would see Yahoo hand over its search advertising operation to Google in a deal that could yield Yahoo as much as US$1 billion in new revenues, according to reports in The Wall Street Journal.[5]
Will Google ( GOOG ) play the spoiler ? Will an AOL-Yahoo deal make any sense? The scenarios ''' outlined by Henry Blodget ''' are almost endless. It all really starts with Yahoo'''s earnings report. Yahoo has already indicated that its first quarter is in line with Wall Street estimates ''' analysts are expecting the company to report earnings of 9 cents a share on revenue of $1.32 billion, according to Thomson Financial.[6] Yahoo's latest rejection April 7 followed a letter from Microsoft Chief Executive Steve Ballmer two days earlier that hinted at a hostile takeover if Yahoo doesn't attempt to negotiate a sale before April 26. Yahoo seems bullish about its performance. Last month, the company took the unusual step of reaffirming its revenue forecast for the first quarter and the year. It also gave a rosy forecast for the next two years. For its first quarter, analysts expect Yahoo to report a profit of 9 cents a share. Revenue minus traffic acquisition costs -- money it pays to Web site partners that carry its ads -- should hit $1.32 billion, say analysts polled by Thomson Reuters.[7]
The offer was tantalizing, given it was 62 percent, or $17 billion, greater than Yahoo's market value at the time. Yahoo's directors insist the Internet icon is worth more, but even they know that may not be enough to ward off mighty Microsoft. That's why Yahoo's management has been trying to drum up support among shareholders while exploring other deals with rivals Google Inc. and AOL in an effort to top Microsoft's offer. Microsoft says it still hopes to work out an amicable deal with Yahoo, a goal that has caused many analysts to predict the software maker will raise its bid to as much as $35 per share, or about $50 billion. If the standoff isn't resolved by April 26, Microsoft is threatening to take its bid directly to Yahoo shareholders in what is known as a proxy contest. If it pursues this route, Microsoft also may try to get the shareholders replace the 10-member board resisting its overtures with a slate of directors that would approve a sale, whether Yahoo's management likes it or not.[8] Yahoo was in second at a 21 percent share followed by Microsoft at 9 percent. Despite the challenges ahead, Google still has ample opportunities to grow as advertisers shift more of their spending to the Internet from other media like newspapers, magazines, radio and television. The Internet is expected to capture about 7 percent, or $44 billion, of the total worldwide advertising market this year. Analysts say the percentage of Internet advertising lags behind the amount of time consumers are spending online, suggesting that marketers will need to ramp up their spending even more if they want to reach potential customers. Google also has been adding more advertising vehicles to supplement its search engine. Google is starting to show more video advertising through its increasingly popular clip-sharing site, YouTube.com.[9]
"Google's earnings climbed up 31 percent to $1.31 billion and revenue swelled up 42 percent to $5.19 billion compared with the same period last year." The Mountain View, Calif., company accredited the accomplishment, which exceeded analysts' expectations, to growth overseas and improvements in its formula for delivering ads alongside search results and on third-party sites. "It is clear we are well positioned for 2008 and beyond, regardless of the business environment we are surrounded by," chief executive Eric E. Schmidt told analysts during a conference call. The report outflanked many Wall Street analysts with first-quarter earnings, who had boiled down their forecasts for Google's growth that surpassed their predictions, propelled by an aggressive push outside the United States.[10] According to analysts surveyed by Thomson Financial, Google is expected to report first-quarter revenue of $3.61 billion when certain payments to partners are factored out, a 6.5% increase from $3.39 billion on that basis in the fourth quarter. Google declined to comment on the comScore data or its earnings report. When it posted its fourth-quarter earnings on Jan. 31, Google CEO Eric Schmidt said the company hadn't seen any impact from macroeconomic softening. In public comments since then, Google executives have said it isn't clear yet whether those problems will hurt its business. Since going public in 2004, Google has sworn off giving any detailed public earnings guidance, which increases the difficulty of assessing any risks to its performance. That's a major reason investors turn to comScore's search-ad click data, despite analysts' warnings that the data haven't always predicted Google's results reliably in the past. "The comScore click data has been a huge focus for the investment community and probably has been one of the bigger influences on the stock this quarter," says John Aiken, managing director of Majestic Research in New York.[11] Los Angeles, California. "It's clear to us that we're well positioned for 2008 and beyond, regardless of the business environment that we find ourselves surrounded by," chairman and chief exec Eric Schmidt told Wall Street analysts in a Thursday afternoon conference call. Google issued its earnings report after the stock market closed, and the company's stock promptly shot up in after-hours trading, passing the $500 mark for the first time since February. It had been trading at $449.54 when the market closed. The Netco also reported that international revenue now brings in more than half of its total coin, accounting for $2.65 billion, or 51%, compared to 47% in the year-earlier period.[12]
The news, released after the U.S. stock market closed on Thursday, lifted Google's recently drooping shares by more than $US76, or 17 per cent. "This is mostly a relief rally," said Stanford Group analyst Clayton Moran. "People are relieved that things aren't as bad as they thought." Google's global appeal propelled the Mountain View-based company as more than half its revenue came from outside the United States for the first time in its 9 1/2-year history.[13] The company's quarterly tax rate ranged from 25 per cent to 27 per cent last year. Management attributed this year's lower rate primarily to its widening exposure to markets outside the United States. The results restored some of the $US75 billion in shareholder wealth that had evaporated with the 35 per cent drop in Google's stock price this year. Google shares declined $US5.49 during regular trading to finish at $US449.54 before the company released its pleasant surprise. This was the 12th quarter out of the 15 since Google went public that its performance has topped analyst expectations - a trend that had helped propel its stock to nearly $US750 before the recent plunge.[13] The internet search leader said it earned $US1.31 billion ($A1.40 billion), or $US4.12 per share, during the first three months of the year. That represented a 30 per cent increase from net income of $US1 billion, or $US3.18 per share, in the first quarter of 2007. If not for expenses to cover stock given its employees, Google said it would have made $US4.84 per share. That figure outstripped the average projection of $US4.52 per share among analysts surveyed by Thomson Financial.[13]
Think about how Yahoo's business, "however weaker, follows along the very same tracks" as Google, which turned in impressive first quarter results last week. Note that CEO Jerry Yang hasn't been frantically making flights to and from Yahoo's Sunnyvale, Calif. HQ to Microsoft's Redmond, Wash. campus, which you'd expect he'd have to, to finish the deal if Yahoo's Q1 results were that bad. "Thus, expect sunshine and daisies tomorrow at 5 pm ET" tomorrow, says Swisher, and later, perhaps, a call from Microsoft upping its offer to between $34 and $35 per share. That would settle things.[14] Yahoo! has six days left to decide whether it'''s to remain independent or surrender to an unsolicited takeover by Microsoft. The internet giant is racing to find a credible alternative to the takeover by Microsoft or at least force it to increase its offer from $31 a share, according to the Irish Independent. Tomorrow will see Yahoo! disclose its first quarter profits which may demonstrate some financial stability that could benefit its situation, whereas Microsoft'''s results are due out on Thursday.[15]
Wall Street estimates for the second quarter (earnings of 11 cents a share on sales of $1.37 billion) are slightly higher. Should Yahoo beat estimates and raise its outlook for the second quarter, it could garner enough leverage to nudge Microsoft to increase its offer to $35 a share from $31 a share.[6] Google's showing could be a precursor to a strong earnings report from Yahoo next week. If it can meet or exceed analyst expectations like Google did, Yahoo will be in a better position to ward off Microsoft Corp.' s unsolicited takeover bid or at least argue for its suitor to raise the cash-and-stock offer from its current value of about $US42 billion. Mountain View-based Google is trying to help Sunnyvale-based Yahoo thwart Microsoft by helping Yahoo place ads on its Web site as part of a test scheduled to conclude next week.[13] Yahoo Inc. will get more attention than usual when it announces earnings Tuesday, and not just from investors wondering how its revenue stacks up against Google Inc.' s strong quarter. This week's report will be an opportunity for Yahoo to try to demonstrate that it is worth more than Microsoft Corp.' s unsolicited takeover bid. Yahoo's earnings announcement comes days before Microsoft reports its own earnings Thursday and Microsoft's threatened Saturday deadline for launching a hostile takeover effort. Any big surprises from either company's financial results could alter the negotiating landscape, particularly around their standoff over Yahoo's value.[16]
Last month, only two weeks before the end of the quarter, Yahoo was able to reaffirm earlier projections it shared with analysts for the period. Another potentially positive sign was Thursday's earnings report from Yahoo's rival, Google Inc. (GOOG), providing at least some reassurance that the online- advertising market underpinning both companies is still seeing healthy demand. "It seems like there's less likelihood of a surprise from Yahoo now," Sandeep Aggarwal, a Collins Stewart analyst, said in an interview after studying Google's report. Data released earlier this week by search-marketing firm SearchIgnite showed that Yahoo, traditionally on the losing end of such reports, actually managed to increase its share of the total pool of search-advertising revenue. Yahoo's share of such ad spending grew to about 24% in March, according to the SearchIgnite data, while Google's share dipped to roughly 70%.[17] Understanding Google and its dramatic impact on overall business means looking at the next three years. Let's examine its international growth, morphing its paltry 1% share of the display advertising market, and developing precise social-networking metrics and general applications for nascent interactive platforms and devices. It will use its YouTube platform to revolutionize ad-supported online social-networked video. It will create ubiquitous search, share, and store across a sky-full of servers and integrate its innovative applications with Salesforce.com. It's the stuff of a near-term business revolutionand future Google mega profits that are sure to create stock price and valuation volatility to rival any we have seen from the company in recent months. This underscores one of the most formidable and important challenges ahead: reconfiguring valuation of traditional businesses with declining legacy fundamentals, and gaining a grip on valuations of evolving business models that will take their place. This requires real-life, real-time examples that remain scarce. Amazon.com, which reports earnings this week, has a new cloud computing model at the heart of the infrastructure service for third parties that is not yet a line-item on its balance sheet. When Google introduced its auction-based, automated, front-end, self-service system of ad sales, and brought smaller advertisers into the fold with AdWords, it made a fundamental shift in the way advertising is generated, priced and measured.[18] The stakes haven't been lost on the chief Yahoo and his advisers. The company has been more solicitous than usual to Wall Street analysts leading up to its momentous earnings report Tuesday, according to one analyst familiar with the matter. The tactics the analyst described portray a company seeking to engage research analysts more aggressively and present their inner workings in the best possible light. In theory, Yahoo could even adjust its numbers for the quarter, by piling up sales to favored customers in exchange for discounts later, for example. If it chooses that course, it would represent a significant policy shift, as Yahoo's management has a reputation for being straightforward with analysts on the health of its business. While Google's strong earnings report may say something about the health of its closest search rival, the two companies remain distinctly different in many ways. Analysts point out that Yahoo's fortunes have been diverging from those of Google for roughly three years now. Despite some signs that Yahoo may have regained some focus of late, that trend has continued unabated, they say.[17]
The firm predicted first-quarter revenue of between $1.68 billion and $1.84 billion. This compares to $1.67 billion a year earlier. According to Jeffrey Lindsay, an internet analyst with wealth management company Sanford C Bernstein, Yahoo! is likely to deliver in terms of its projected earnings due to its desire to avoid a Microsoft takeover unless the offer is raised. He stated: "In any internet business, you can pull the stops out in any one or two quarters. be very crazy not to."[19] Being a publicly held company like Yahoo Inc. means there's always a chance there will be a takeover offer that can't be refused, even if the buyer might be a despised rival. That's because a public company's fate ultimately is controlled by its owners, the shareholders. They're generally a hardhearted bunch primarily interested in doing what's best for their investment portfolios. Yahoo hasn't been doing a very good job keeping its shareholders happy during the past two years, opening the door for Microsoft Corp.' s initial bid of $44.6 billion, or $31 per share.[8] Microsoft's bid for Yahoo has gotten a boost from an unexpected source: the stock market. The software maker's shares have rallied in recent days, helping Microsoft recover some, though not all, of the original value of its cash and stock offer. That could make it easier for Microsoft to open its wallet and pay Yahoo shareholders a little more than it originally offered, something it has so far refused to do. When it made its unsolicited bid on January 31, the offer was worth $44.6 billion, or $31 per share.[20] For the bid to return to the original value of $31 per share, Microsoft's shares would have to rise about 4% from the Friday close. That could make it much easier for Microsoft CEO Steve Ballmer to put more money on the table because many Yahoo shareholders have demanded that it raise its over above the original $31 per share value. The closer Microsoft shares get to that value, the easier it becomes for the company to increase its offer.[20]
In the event of a sale, Yahoo will need to show some strong growth if it hopes to wring any more money from Microsoft, Squali says. "If they don't report an 11% or 12% gain in revenue growth, which is about where consensus is, then they weaken their case against Microsoft and there is no reason for Microsoft to come in and pay a bigger premium," he said. Pyykkonen agrees, saying Microsoft probably won't sweeten its bid unless Yahoo demonstrates some financial upside. "This is almost like a poker game with Microsoft calling Yahoo's bluff," he said. "But if Yahoo has a good quarter, maybe they can get Microsoft to ante up with one or two dollars (more per share)."[7] Yahoo reported $5.1 billion in net revenue for fiscal 2007. The company will see this growth, it said, by undertaking such initiatives as "serving advertisers' needs so well that they cannot imagine not working with Yahoo." Executives at the company also have been emphasizing key assets such as their email service and home page. Yahoo says that the three-year plan was submitted to its board before Microsoft's bid surfaced, but its strategic value clearly increased once it found itself fighting to remain an independent company. Whether Yahoo's arguments will be supported by the company's progress since January is a question to be addressed when Yahoo reports its results Tuesday.[17]
Just what kind of hand Yahoo is holding is unknown. A year-over-year increase in revenue could mean Yahoo is having some success with its display and search ad businesses. Garrity says the expected dip in profit likely comes from work the company has been doing to bring its display and search ad businesses to one platform to give better access to advertisers. "It indicates margin pressure, and they had already indicated that was happening," Garrity said, referring to Yahoo's reaffirmation of its first-quarter numbers last month. Revenue and costs might rise, says Squali, as Yahoo integrates recent acquisitions such as Blue Lithium, a service that allows advertisers to reach more targeted audiences, and Right Media, an online ad exchange that matches ads with space on Web properties. "We think you are going to see year-over-year double-digit growth in display advertising," Squali said, "because those businesses were not part of their business model in Q1 '07. Their operating expenses have gotten bloated because these acquisitions are not as profitable as Yahoo, so that brings down the margins." Analysts say Yahoo will also reap some revenue boost from its revamped Web search ad business, known as Panama.[7] Mr. Aiken says large search buyers are spending the same or more, and ad firms that work with large advertisers support that idea. "We don't really have any instances where we're seeing clients pull back their search ads," says Steve Governale, senior vice president and managing director of SMG Search, a unit of Starcom MediaVest, itself a unit of Publicis Groupe. If anything, big advertisers are shifting dollars to search ads because it can be easier to measure the revenue generated by them than it is for ads like glossy magazine spreads, some ad executives say. Some analysts say ad spending is dropping in some industry areas most affected by economic problems, such as financial services. Spending by advertisers in the financial, travel and retail areas declined or grew more slowly in the fourth quarter, compared with a year earlier, Yahoo President Susan Decker told analysts in January, though she said that overall the company had seen "a solid start to the year." It remains unclear how online advertising beyond search is affected by any consumer slowdown. Search advertising is the largest category of U.S. online ad spending, expected to account for 40% this year, according to research firm eMarketer Inc. Other forms of online advertising, such as graphic display ads and video ads, are generally priced using different models than per-user clicks. EMarketer last month reduced its 2008 forecast for U.S. online spending because of concerns about the softening economy.[11] "In terms of today and next week, there's going to be a lot of upward momentum for all of the Internet companies" who rely on ad revenue, Sandler said. Google Chief Executive Eric Schmidt said his team had carefully reviewed scenarios regarding the economy, and concluded that even if conditions worsened, its search advertising would still attract companies as an efficient way to reach customers. "This signals that the online advertising market is still healthy, which should help Yahoo get a better price for its company," said Peter Dunay, chief investment strategist at Meridian Equity Partners. Internet advertising executives bolstered Schmidt's rosy view, saying their clients were actually spending more money online at both Google and Yahoo.[21]
SAN FRANCISCO (AP) - Wall Street is renewing its love affair with Google after weeks of worry about slowdown in online advertising. The Internet search company's stock soared 20% today, restoring $28 billion in wealth to its shareholders. That's the biggest 1-day gain for Google since the company's initial public stock offering in August 2004.[22]
Last week, rival search engine provider Google announced revenue of $5.19 billion for the first three months of 2008. This figure exceeded the expectations of investors who were concerned about the search giant's financial status following the publication of comScore figures that suggested the company's click-through rates had increased by only two per cent compared with last year.[19] Management has said the slowdown in ad clicking largely reflected changes that purposefully reduced the volume of commercial in an effort to deliver more compelling messages that lead to purchases. By making this switch, Google bet that advertisers would be willing to pay more for each ad link and ultimately generate more revenue from fewer clicks. That appears to be what happened in the first quarter when the company said the number of paid clicks from last year rose by 20 per cent, less than half the rate of the first-quarter revenue increase.[13] The first quarter represented a tipping point in Google's maturation into an international company that's becoming less vulnerable to the ups and downs of the U.S. economy. Google collected most of its first-quarter revenue outside the United States, the first time that has happened in the company's 9 1/2-year history. Besides diversifying its business, the higher international revenue should also help boost Google's profit because it should keep company's tax rate slightly lower than it has been in past years. Google Chief Executive Eric Schmidt left little doubt he expects the company to prosper as he hailed the first quarter results. "It's clear we are well positioned for 2008 and beyond, regardless of the business environment we are surrounded by," Schmidt told analysts.[9] For instance, Google's first-quarter revenue climbed 42 percent. That's impressive, but well below the 63 percent growth in 2007's first quarter. Google's profits could be squeezed later this year if it has to spend more money to upgrade the data centers that power its search engine and other online services like e-mail, said Collins Stewart analyst Sandeep Aggarwal. He said he thinks additional investments probably will be needed, given some of the data centers are three or four years old.[9]
Analysts are expecting Microsoft to report third quarter earnings of 44 cents a share on revenue of $14.5 billion, according to Thomson Financial. Thomas Weisel analyst Tim Klasell says Microsoft is '''well positioned''' but he doesn'''t expect significant upside surprises like the software giant delivered in the first half of its fiscal year.[6] Google said sales were up 42% to $5.19b for the quarter ended 31 March. For the first time, the California-based firm earned more revenue abroad - 51% of total sales - compared to its home market. This was partly due to a slump in the weak dollar which increases the value of non-U.S. earnings. Its shares fell $5.50, or 1.2%, to $449.50 before its results were released, but they rebounded sharply after the closing bell which means that when New York trading begins on Friday, they will rise. It's a good time to be a Google bull,"" said Colin Gillis, an analyst with Canaccord Adams.[1] Google's net revenue was $3.7 billion and earnings were $4.84 a share. The ace in Google's hand: international sales, which exceeded its U.S. sales for the first time.[10]
Based on the comScore report, Wall Street analysts had estimated Google to report net revenue of $3.59 billion and earnings of $4.52 a share.[10] The average estimate on Wall Street is that Yahoo will earn 18 cents a share for the period that ended in March, and $1.3 billion in net revenue, according to a survey by FactSet Research. That compares with earnings of 10 cents a share and $1.18 billion in net revenue in the corresponding period a year earlier.[17]
A year ago, Yahoo reported per-share earnings of 10 cents and ex-TAC revenue of $1.18 billion.[7]
Then the idea would be for Yahoo! to use Time Warner's money to buy back a few billion dollars worth of stock for somewhere between $30 and $40 a share to pacify investors watching Microsoft and its money walk out the door, which could crush Yahoo's stock. Anyway, the Journal now says Google and Yahoo! are trying to figure out how to avoid being blocked by regulators and could limit their ties to specific kinds of search queries or regions. Microsoft, meanwhile, has other ideas and has hired a Washington lobbyist, Bryan Cave Strategies, to ensure that its acquisition of Yahoo! passes the regulatory gauntlet. [23] The rally was partly fueled by Google's earnings surprise after the close of trade on Thursday. Microsoft stock jumped 2.7% to close at $30, its highest level since February 4. That means the offer is currently worth $42.8 billion, or $29.76 per share.[20] Google reported first-quarter results following the closing bell Thursday in which the California Internet company reported $1.31 billion, or $4.12 per share, in earnings, compared to $1 billion, or $3.18 per share, in the year-ago period - an increase of 30 percent.[24] For the three months ended March 31, Google posted a profit of $1.31 billion ($4.12 per share), compared with $1 billion ($3.18) a year ago. Its adjusted earnings jumped to $4.84 per share, easily beating mean estimates from Thomson Financial for $4.52.[10]
Analysts expect first-quarter results to show revenues climbing 40% to around $3.5bn, with profit per share up 22% despite last year'''s hiring binge and higher R&D; spending. That does not sound like a company in trouble.[25] Analysts, on average, are expecting profit of 9 cents per share, excluding special items, on revenue of $1.32 billion, according to Reuters Estimates.[21]
Onward and upward," wrote Garrity, who expects the price to hit $750 during the next year. Friday's rally still left Google shares well below their peak of $747.24 reached less than six months ago. At that point, Google's market value stood at $235 billion, about $66 billion, or nearly 40 percent higher, than at Friday's close. With the company's annual revenue headed toward $20 billion, it's becoming more difficult to produce the hefty gains that excite investors.[9] In 4 p.m. trading on the Nasdaq Stock Market Wednesday, Google shares rose 1.8%, or $8.19, to $455.03. They are down about 34% since the start of the year. Mr. Aiken says his analysis of search-ad activity and conversations with search-ad buyers indicate that small- and medium-sized search advertisers are pulling back. Such a development would probably drag on Google's search-ad revenue, because about 99% of its more than one million advertisers and the majority of its revenue come from that category, according to people familiar with the matter.[11]
The company said that aggregate paid clicks rose some 20% over a year ago and around 4% above the fourth quarter 2007. Rival Netco Yahoo has been exploring a deal under which it would outsource to Google its search advertising as a way to fend off Microsoft's takeover bid. [12] Recently, Yahoo! has revealed that it is testing an advertising sales deal with Google in a bid to deter a hostile takeover by Microsoft. It is running a test of Google'''s Adsense for search service which will deliver relevant Google ads alongside Yahoo!'''s search results.[15] The service competes with rival services from Microsoft and Google, the leading seller of online text-based ads. On April 9, Yahoo said it was conducting a limited test of Google's search ad service on its U.S.-based Yahoo.com portal. Yahoo's pairing with Google isn't necessarily a sign that it's dissatisfied with the results from Panama, Garrity says. He said the deal with Google was intended mainly "to get a rise from Microsoft and to satisfy shareholder concerns that they are willing to try alternatives such as outsourcing search to Google."[7]
Yahoo's board has rejected the offer several times, causing Microsoft to issue an ultimatum threatening to oust the board if it does not agree to the proposal by 26 April. Since the acquisition offer was first made, analysts have speculated that Yahoo would seek out a deal with former rival Google in attempt to preserve its independence. The two companies confirmed those suspicions earlier this month when they announced a two-week trial of a search advertising programme. Yahoo has also been rumoured to be in talks with AOL and News Corporation for other deals which could raise cash to fend off Microsoft.[5] Time runs out by Saturday, the date Microsoft has set for Yahoo to accept the deal or face a drawn-out proxy battle by Microsoft to unseat Yahoo's board. Two weeks ago the software giant threatened to lower its offer if Yahoo did not conclude friendly merger talks with Microsoft by April 26th. Yahoo's chief technology officer will use a speech on Thursday at the Web 2.0 Expo industry show to spell out a strategy to open up Yahoo services such as e-mail, news, sports and advertising to make them more relevant across the Web, not just for users drawn inside its own sites.[3]
While Yahoo is seeking a business partnership with Google, unlike the outright merger that Microsoft wants, legal experts say any deal between the world's two largest Internet search services will draw heavy scrutiny from U.S. and European competition regulators.[26] Microsoft Corp. CEO Steve Ballmer may be experiencing bidder's remorse after making an unsolicited $42.3-billion U.S. offer to buy Yahoo Inc. Speaking to a group of nearly 2,000 Microsoft enthusiasts at a technology conference in Seattle, Ballmer asked how many people use Yahoo as their primary Internet search engine. Only a handful of arms went up, with the majority raising their hands for Google Inc.[27]
The yawning gulf between it and its rivals is amply illustrated by Microsoft'''s ( MSFT ) $44bn bid to buy up Yahoo! ( YHOO ) and create a serious rival to Google in the sector. Microsoft'''s ultra-aggressive boss Steve Ballmer has made it his stated ambition to '''kill Google''' and '''bury''' its chief executive Eric Schmidt. To do so, he is playing hardball, threatening tactics aimed at pressuring Yahoo! to do a deal fast. Even if Ballmer is successful ''' and he probably will be ''' a combined Microsoft/Yahoo! would still have just 15% of the global search market compared with 62% for Google, according to figures from data firm comScore.[25] The sentiment on Wall Street so far, however, seems skeptical at best. At Jefferies & Co., analyst Youssef Squali responded to Yahoo's initial disclosure of its three-year plan by writing to clients that it featured data that "require a leap of faith that's difficult to make." In note published Friday, Squali wrote that he's maintaining a buy rating on Yahoo. That's based, he cautioned, only on the likelihood that Microsoft will ultimately prevail in its desire to buy Yang's company. One initiative Yahoo has undertaken that's been praised by analysts in the past, the outsourcing of its search-advertising business to Google, is widely expected to die should Microsoft take over. Google Chief Executive Eric Schmidt said during a conference call with analysts Thursday that he's "very excited" about a current test of the outsourcing arrangement, which recently marked its second week.[17] The firm reported revenues in the fourth quarter that were lower than Wall Street expected. Two reports from comScore showed that the number of users '''clicking through''' to paid-for adverts flatlined for two months running, compared with annual growth of up to 40% just six months ago. (Google says this is the result of a tweaked strategy ''' it wants fewer but better-quality clicks ''' and is expected to expand on this when it announces results this week.) Third, a trickle of senior executives have chosen to leave the company, worrying the market about Google'''s ability to hold on to its best and brightest.[25]
Google had lost favor with investors as Web surfing data and the faltering U.S. economy raised concerns that people weren't clicking as frequently on the Internet advertising links that generate most of the Mountain View-based company's revenue. The company more than offset any decline in ad revenue by expanding its foreign business and tweaking its online ad system in a way that helped reap more revenue per click.[22] The trend threatened to chip away at Google's earnings because the company typically gets paid by the click. Although there were signs of decelerated clicking in the United States, Google more than offset any negative effects by expanding its foreign business and tweaking its online ad system in a way that helped reap more revenue per click.[9]
Now it appears Google's strong revenue earnings could help Yahoo prove that there is still life in online advertising revenue. This of course strengthens their position that Microsoft is undervaluing them.[28] NEW YORK ( Reuters ) - An earnings windfall for Google Inc should benefit rival Yahoo Inc in buyout talks with Microsoft Corp, as investors view the results as proof of a robust online advertising market.[21] Google's surprising results provided evidence that the market for online advertising remains strong despite the weakening U.S. economy, apparently contradicting assertions by Microsoft that Yahoo's value has been diminished by a weaker economy and a slowdown in the advertising business.[29]
The software maker has cast doubt on whether Yahoo is even worth that much with a weakening U.S. economy and general slowness in the ad industry. Google's strong showing could help its rival Yahoo stand firm on a higher takeover price on hopes Web marketing is more durable in a downturn. Industry analysts say Yahoo's first-quarter results are going to be a major swing factor in its talks with Microsoft. "The one thing that can really change Microsoft's thought process on valuation is if they can come in with good results," said Ross Sandler, analyst at RBC Capital Markets. "We think there is a decent likelihood of upside from Yahoo this quarter."[21] Google Inc.' s better-than-expected first-quarter results could bolster rival Yahoo Inc.' s negotiating clout in its takeover talks with Microsoft Corp., but analysts cautioned about reading too much into Google's news.[29]
Next week, Yahoo will report first-quarter results and if it faired better as Google did, chances are it will have built a case for warding off the takeover bid from Microsoft.[24] SAN FRANCISCO (Reuters) - Yahoo Inc (YHOO.O: Quote, Profile, Research ) faces a critical week that could decide whether the pioneering Web company can remain independent or must surrender to an unsolicited takeover by Microsoft Corp (MSFT.O: Quote, Profile, Research ). Yahoo is racing to forge a credible alternative that lets it stay independent or at least forces Microsoft to raise its $31 a share cash-and-stock bid, now valued at $42.8 billion.[3] Yahoo's first-quarter report comes as the company faces an increasingly aggressive buyout bid by Microsoft, made more than two months ago and initially valued at $44.6 billion.[17]
Yang has nonetheless spearheaded a campaign to convince shareholders and analysts -- not to mention Microsoft -- that good things are yet to come. As part of this effort, Yahoo in March disclosed an investor presentation that included goals for the company through 2010. Yahoo said, for example, that in that time frame, it intends to double its operating cash flow from $1.9 billion to $3.7 billion and to reach $8.8 billion in annual net revenue.[17] After subtracting the commissions paid to the company's advertising partners, Google's revenue stood at $US3.7 billion - about $US100 million above analyst estimates. "It's clear we are well positioned for 2008 and beyond, regardless of the business environment we are surrounded by," Google Chief Executive Eric Schmidt told analysts during a Thursday conference call.[13] According to the company, Google-owned sites generated $3.40 billion in revenues in the first quarter of 2008. This was a 9% increase over Q4 and a 49% over Q1 of 2007. Google's network revenues, generated through its AdSense programs, brought in $1.69 billion in revenue, a 3% increase compared to the previous quarter and a 25% year-over-year increase.[30] Google released its first quarter results for 2008 yesterday, citing revenues of $5.19 billion, a year-over-year increase of 42% and a 7% increase from the previous quarter.[30]
International markets accounted for 51 per cent of Google's revenue in an expansion that was accentuated by the weak dollar. Google said its revenue would have been about $US202 million lower if the dollar's value hadn't declined so dramatically from the first quarter of 2007.[13]
While Yahoo may have enjoyed the same resilience in the search-advertising market Google experienced the first quarter, it says little about other aspects of online advertising in general. Unlike Google, Yahoo depends on translating the many graphical-display ads placed across its broad portal into increasing amounts of revenue -- a task that it has found challenging.[17]
The potential partnership, in the midst of a test scheduled to be completed next week, would likely face intense antitrust scrutiny. If nothing else, analysts believe Google wants to delay a combination between Microsoft and Yahoo for as long as possible to give it a better chance to widen its lead in the Internet search market, which currently generates the biggest chunk of online advertising.[9] Last year it began offering software programs online (such as email and word processing) in direct competition with Microsoft. As BusinessWeek notes, in each of these areas Google faces '''credible and often large competitors''' ''' not something that the firm is used to in the search sector. Most of all, as it broadens its ambitions from search into software, the business faces a Microsoft that has been in '''kill Google''' mode for well over a year, spending billions on ad-related acquisitions even before its audacious attack on Yahoo![25] The Google strategy, which could potentially be worth a billion dollars a year to Yahoo! but is sure to catch antitrust flak, is part of a tripartite deal that would have Yahoo! merge with AOL and AOL's owner Time Warner take a 20% stake in the combined company for some cash to fend off Yahoo!'s unwanted acquisition by Microsoft.[23] During an interview, Google co-founder Sergey Brin said Google was thrilled to be functioning with Yahoo. If successful in making a positive agreement, such a deal may perhaps complicate Microsoft's $42 billion effort to acquire Yahoo.[10] Microsoft paid $6 billion for aQuantive, Yahoo bought BlueLithium for $300 million and Time Warner Inc's AOL unit bought Tacoda for an undisclosed amount. Gregory Sidak, founder of the economic consulting firm Criterion Economics, said U.S. regulators are likely to view the tech market as so dynamic and fast-changing that they will abstain from blocking any particular deal or joint venture in what appears to be an ultra-competitive industry. European regulators are generally more likely to act to block mergers than their U.S. counterparts.[26] Yahoo rejects that price as too low and has been casting around for other partners. It announced last week a test to outsource search advertising to Google, which sources say is part of Yahoo's plans to form a three-way alliance with Time Warner Inc's AOL to fend off Microsoft. Antitrust experts said regulators would likely oppose any permanent alliance between Google and Yahoo, while they would likely approve Microsoft's proposed merger with Yahoo.[26] "You might see brand budgets pulled back, but I do think that search is really still set to grow," said Sarah Fay, CEO of the Aegis Group agencies Isobar and Carat USA. "Search is still being adopted by many of the companies that haven't used it heavily, especially companies in the consumer packaged goods space," she said. For its own part, Yahoo has pulled out all the stops in trying to convince Microsoft it is worth more, including dizzying rounds of talks with potential partners for a merger or new venture, from Google itself to Time Warner Inc's AOL and News Corp.[21]
Google held a 59.2 per cent share of the U.S. Web search market in February, compared with Yahoo's 21.6 per cent and Microsoft's 9.6 per cent, according to research firm comScore.[26] RBC Dexia Investor Services, which keeps track of about $340-billion worth of Canadian pension plans and money managers, said that Canadian pension plans lost ground for the third consecutive quarter, and have now lost 2.7 per cent in the latest 12-month rolling period. View Larger Image Only a few hands went up when Microsoft CEO Steve Ballmer asked a Seattle technology conference how many people used Yahoo as their primary search engine.[31]
While Google dominates search, Yahoo argues the market for online display ads - the splashy banners or video ads that companies love - is so fragmented that Yahoo is the biggest player with just 8 per cent of the market.[26] Regulatory bodies could potentially raise concerns of any arrangement between Google and Yahoo! that would reduce competition in the search ad sector. Mark Mahaney, a Citigroup analyst, told the Telegraph that Yahoo!'s cash flow could be increased by 1 billion through such an agreement, as Google earns more revenue per query than its competitor.[4] Analysts estimate that the outsourcing deal could add hundreds of millions of dollars to Yahoo's annual revenue. However, it would likely spell the end of its presence in search -- as Google would be able to corner even more of the lucrative market. "It's nice to be working with Yahoo," Schmidt said, "and we like them very much."[17]
Given the weak dollar, which makes U.S. goods cheaper to buy overseas and boosts sales because of currency conversions, Google, IBM and Intel got a nice quarterly cushion. Jeffries analyst Youssef Squali reckons that Yahoo gets about a quarter of its revenue (net of transaction acquisition costs) from overseas.[6] The sales surge from outside the U.S. benefited Google in other ways: lower U.S. taxes and the exchange rate bonus. If Google CEO Eric Schmidt seems disinterested in the suffering (and whinging) of traditional media it's clear he is. "It's clear to us that we are well-positioned for 2008 and beyond, regardless of the business environment we find ourselves surrounded by," he said during an analysts conference call. Stock traders, wringing their hands for a variety of reasons, rewarded Google with a 20% bump in the share price.[32] Driven by stellar first-quarter results that surprised industry analysts, Google shares surged $89.87 to finish at $539.41. It marked the biggest one-day gain since Google's initial public stock offering in August 2004, leaving the shares at their highest closing price since January.[9]
Google is the clear leader in the Search Engine field,with 56.3 percent market share. Its nearest rival Yahoo, has less than half that, and MSN only just over 8 percent. The rest including AOL, have between them a total of 13.8 percent. Google added You Tube to its acquisitions a couple of years ago. Before these lastest results, there had been losses.[33] Google also has 59.8 percent market share of Internet searches, to 21.3 percent for rival Yahoo and 9.4 percent for Microsoft, according to ComScore.[34]
The Journal allowed that Yahoo's machinations are unlikely to derail Microsoft's plans. Yahoo! wants more than the $31 a share on offer but reportedly won't name its price, but won't negotiate with Microsoft until Microsoft raises its bid, the paper said.[23] Concern that the software giant was paying too much reduced the value of the offer by as much as $3.8 billion to $40.8 billion. That trend was reversed over the past week as Microsoft shares rose 6%.[20]
There had been fears that the Callifornian-based firm was being hit by the slowing U.S. economy. Analysts say Google's strong performance could strengthen Microsoft's resolve to buy Yahoo, even if it means raising its nearly 30 billion Euro offer.[33]
The quintessential long-term, big-picture player is a publicly traded disruptor that has to indulge investors in short-term fixations. Google's advertising businessparticularly in sensitive financial service and retail sectorswill begin to get soft in a protracted recession, although half of its revenues now come from overseas. It will try to be a spoiler in Microsoft's unsolicited takeover of Yahoo, which has 18% of the online display advertising market.[18] Microsoft Corp.' s bid to acquire Yahoo Inc. also could create a more formidable competitor to Google. Recognizing the threat, Google is trying to help Yahoo thwart Microsoft's takeover bid by using its lucrative advertising system to place commercial links on Yahoo's Web site.[9] Yahoo Inc's attempt to form an alliance with Google Inc to stave off Microsoft Corp could run into more trouble with antitrust regulators than Microsoft's unwelcome takeover bid.[26] There is also a farce going on between Yahoo ( YHOO ) and Google right now, as Yahoo makes a rather silly attempt to fend of Microsoft'''s hostile takeover bid.[35]
Analysts say Yahoo's first-quarter earnings results could be the Web portal's last hope to remain an independent company or wrangle a higher bid from suitor Microsoft ( MSFT ).[7] Yahoo ( YHOO ) reports first quarter earnings on Tuesday, and if the results are good the company could get a little negotiating leverage against Microsoft ( MSFT ), which is chasing Jerry Yang & Co. like a lovelorn teenager. Microsoft reports its earnings on Thursday and will be set to respond to whatever Yahoo says.[6] Microsoft shares could get another boost next week when the company reports first quarter earnings.[20]
Google ended the first quarter with a 60 percent share of the U.S. search market, up from 58 percent at the end of the fourth quarter, according to comScore Media Metrix.[9] And, for the first time, 51% of the €3.32billion (US$5.19 billion) in first quarter sales came from outside the U.S., reinforcing the view that Google might be recession-proof.[32]
Google shrugs off ad sales fear Google has reported market-beating results for the first three months of the year, easing worries of a slowdown in online advertising.[1] Google has reported encouraging results for the first quarter. This has eased worries that online advertising could be slowing.[33]
D: All Things Digital Following boffo first quarter results from Google last Thursday, Kara Swisher tells readers to expect a similarly strong Q1 from Yahoo. Just look to Yahoo's recent behavior for some clues, she says.[14] Google's first quarter results were stunning for other reasons, not the least of which is the emerging picture of the company's geographic footprint.[32]
The results show a 42 per cent increase on the same period last year and a seven per cent rise from the previous quarter. Eric Schmidt, the chief executive officer of Google, said the company was "pleased" with what he described as "another strong quarter".[36] Network revenues created $1.69 billion, with international sales rising by 47 per cent on last year, to $2.65 billion.[36] Of the revenue, Google-owned sites created $3.40 billion in Q1, meaning a 49 per cent increase since last year.[36]
First-quarter revenue totalled $US5.19 billion, up 42 per cent from $US3.66 billion a year ago.[13]
Revenue rose 13 per cent to $4.34 billion, more than analysts expected, as more products that print in colour were made available. WASHINGTON / The U.S. and Europe may have to reconsider their promotion of biofuels in the wake of surging food prices around the world, International Monetary Fund chief economist Simon Johnson said. "It used to be the case that biofuels, corn-based ethanol in the United States and also the development of bio-diesel in Europe seemed like kind of a side issue," Johnson said. "It's now front and centre in global geopolitics."[31] Sales increased 18 per cent to $11.8 billion U.S., also topping analysts' predictions.[31]
Cheviot Financial said it earned $97,000, or 1 cent per share, down from $206,000, or two cents a share, in last year's first quarter. [37] The Bank of Kentucky Financial Corp. said Friday it earned $2.5 million, or 44 cents a share, up from about $2.16 million, or 37 cents a share, in the first quarter of 2007.[37]
The Bank of Kentucky said deposits grew 15 percent to $1.04 billion. Its assets totaled about $1.24 billion, up 18 percent from last year's first quarter.[37] Revenue from outside the United States was $2.65 billion, or 51 percent of total revenue. The boom in international business helped Google lower its tax rate to 24 percent from last year's 25 percent to 27 percent.[10] Google'''s revenues recorded an impressive 49% growth over the year, and 9% over the quarter to reach $3.4 billion.[35] Google's first-quarter profits rose to $1.3 billion from $1 billion a year earlier on a 42% growth in revenues of $5.2 billion, while maintaining the same 30% margin as the fourth-quarter holiday period. Its $938 million in free cash flow is up 50% from 2007.[18]
Google on Thursday reported a better-than-expected profit and revenue growth of 42 percent. It said client spending had not been hurt by economic concerns, sending its shares up nearly 20 percent to $538.43 on Friday.[21]
To expand its geographical reach, the company launched tailored homepages for Asian markets and promoted local country search results while demoting foreign search results. These efforts resulted in the growth of International revenue share to 51% from 47% contribution a year ago, and 48% contribution in the previous quarter.[35] Google has reported strong results for quarter one (Q1) of this year, announcing revenues of $5.19 billion (2.6 billion).[36]
Data from research firm comScore Inc. showing a drop in the number of times people click on the ads have fueled the jitters, which have already knocked almost $75 billion off Google's market value since the beginning of the year.[11] "Google should be effectively considered a global company," said David Garrity of Dinosaur Research. Garrity, who had rated Google a buy with a price target of $534, said the Mountain View company could climb back up to its 52-week high of $747.24 over the next year. As Google in general gets paid by the click, any stall in those clicks would be significant. This "marks a significant deceleration," Bear Stearns said in a report last week.[10] Eyeballs tells it all and according to a report released Thursday by Nielsen Online, Web traffic to the Google parent company grew 12 percent year over year, from a three month average monthly unique audience of 111.7 million in Q1 2007 to 124.9 million in Q1 2008.[24]
Thinking that free is the only aspect of software that matters is freetarded. This is where Microsoft can beat the open source community in general, just as its. NET platform is beating J2EE. Let me quote from the insanely great Fake Steve Jobs blog: Red Hat, the single company freetards always point to when they want to prove that open source can make money, has turned inept, with nothing but bluster and bravado and a deluded belief that they're actually a thorn in Microsoft's paw. Bottom line: they're the new Borland. They're 15 years old and have been publicly traded since 1999 and last year they did all of $400 million a year in sales.[38] Yahoo Chief Executive Jerry Yang called the firm's forecast a "testament to our ability to perform in line with our expectations despite the current economic environment." He added that "Yahoo is worth well more as a stand-alone company than the value offered in (Microsoft's) proposal." Even a strong quarter won't be enough to hold off Microsoft, says Youssef Squali, an analyst at Jefferies Co. He and many Yahoo investors believe the Web company's weak performance in recent quarters has made a sale inevitable.[7] Yahoo is still the Web's leading portal and can grow in a robust online ad market, says Martin Pyykkonen, an analyst at Global Crown Capital. "If they have a strong quarter, then their argument to stay independent holds some water," he said. "This is not a case where you have to make the argument that Yahoo has to be bought; it's still a company with scale."[7]
Substantial growth from Yahoo's ( YHOO ) Web-search and display-ad businesses for the quarter that ended March 31 might also provide a silver lining for investors looking for some upside from the foundering company. "They have every incentive imaginable to meet if not exceed estimates," said David Garrity, an analyst at Dinosaur Securities.[7] Greg Sterling, an analyst with Sterling Market Intelligence, says Google's results shows that investors' fears "were somewhat unfounded. Google's growth was not as spectacular as it would have been in a spectacular economy, but it's still the biggest quarter they've ever had."[34] The first-quarter performance reinforced the belief that Google is a "must-own stock," American Technology Research analyst Rob Sanderson wrote in a Friday note. "While (economic) concerns won't be completely dispelled, we believe the growth story remains intact and investors will again fall in love," he wrote.[9] Dinosaur Securities analyst David Garrity also is convinced that the worst is over for Google's stock, which was down 35 percent in 2008 before the first-quarter earnings changed investor sentiment. "We think (Google's stock) has seen its 2008 low.[9] Plenty of analysts and commentators (including MoneyWeek) have been arguing for years that Google'''s stock price was grossly inflated and could not be justified by any realistic projections of future earnings.[25]
Sources told the Wall Street Journal that the limited test of Google that Yahoo! set up went well. It looks like Google is back on track to be that $1,000 stock.[38] The financial targets that guide Wall Street's expectations had fallen during the past two months as web surfing data convinced analysts that Google's advertising links aren't attracting as much consumer interest amid mounting evidence the U.S. economy had tumbled into a recession. Google makes money from the links only when web surfers click on them.[13] Associated Press - April 18, 2008 6:24 PM ET SAN FRANCISCO (AP) - Wall Street is renewing its love affair with Google after weeks of worry about slowdown in online advertising[22]
Only a handful of arms went up -- fewer than for Microsoft's Windows Live search. The overwhelming majority raised their hands for Google Inc, which Microsoft is seeking to challenge as an online advertising powerhouse.[39] My company built it using Google Enterprise Search Technology, and our clients are Real Estate brokers, so we have all the listing data in the markets we serve. Google itself could not build this site, even if they wanted to. Google Base or Trulia, while technologically and aesthetically superior to traditional Real Estate sites like Realtor.com, rely on voluntary feeds from brokers, so they are missing listings. We have the chocolate of Google technology, AND the peanut butter of MLS data, and these two great tastes that taste great together drive our user experience.[35]
After a better-than-expected quarterly earnings report called 'amazingly good' by the New York Times, it would seem that Google is defying macro-economic downtrend. Google has ripped a page out of Salesforce.com's handbook and has started up an AppExchange-like Solutions Marketplace site to cultivate third-party programs that complement its own widgetry, initially stuff like Google Apps and enterprise search.[38] When Google Inc. reports first-quarter earnings after the market close Thursday, investors will find out whether their worries about the impact of the softening economy on Google search ads are justified.[11] Google boss Eric Schmidt said ""innovation in search, ads, and apps"" helped to boost earnings growth.[1] Google chief executive Eric Schmidt said, "Our ongoing innovation in search, ads, and apps helped drive healthy growth globally across our product lines, yielding another strong quarter for Google."[24]
Google also put to rest any fears that were founded to some extent on results from comScore, a Reston firm that tracks Internet use, showing that the growth in the number of "paid clicks" people were making on Google's search ads was rapidly slowing.[10]
Yahoo, who recently undertook a successful U.S.-based test with Google to deliver relevant AdSense ads alongside their search results, has now entered into yet another partnership.[40] Yahoo, keenly looking at ways to escape being bought by Microsoft, has even teamed up with rival Google in a two-week experiment which will see search-driven Google adverts alongside the search results of Yahoo's website.[1] Google's rise in price lifted search competitors Microsoft (Nasdaq: MSFT) and Yahoo (Nasdaq: YHOO) as a result.[24]
There's the audacious Google search partnership, a further opening of Yahoo's platform and yet another rejection letter to Microsoft CEO Steve Ballmer.[14]
Google has objected to Microsoft buying Yahoo! and in response to the news of the AdSense test programme, Microsoft has objected on the grounds of anti-competitive behaviour, according to reports.[15] Yang has sought to present Yahoo as a thriving entity that could remain independent, or at the very least merit a higher offer. An outstanding earnings report could therefore go quite a ways to bolster his case. Microsoft (MSFT), for its part, has added to the pressure by setting a deadline for Yahoo to either begin negotiating a deal a few days after its earnings release or face a hostile takeover.[17] Yahoo was $18/share before the Microsoft offer and ONLY because of the offer has Yahoo jumped to the high 20's - Microsoft should just withdraw the offer and leave Jerry Yang to deal with the disgruntled shareholdersYang is the problem here, not Balmer.[20]
To counter that dominance, Microsoft offered in January to buy Yahoo in a cash-and-stock deal now valued at $42 billion.[26] The value of the deal, $44.6 billion when announced on Feb. 1, has slid to about $42 billion because of a drop in Microsoft's share price.[7]
The company was expected to earn $1.33 a share on revenue of $10.6 billion, the average estimates in a Bloomberg analyst poll.[31] RBC Capital Markets analyst Ross Sandler blends P/E, earnings and free cash-flow yield on 2009 estimates to devise a $143 billion market cap and $550 share target price (before Friday's surge).[18] The first-quarter loss of $5.11 billion, or $1.02 a share, was almost the inverse of earnings of $5.01 billion, or $1.01 a share, a year earlier, New York-based Citigroup said Thursday.[31]
The bank's write-downs, plus more than $3 billion in costs related to consumers' credit problems, led it to report a first-quarter loss Friday of $5.1 billion, or $1.02 a share.[37]
Yahoo is entering a critical week as it prepares to report quarterly results on Tuesday and faces a Microsoft-imposed deadline to accept the nearly $43 billion offer.[21] Yahoo says it expects between $1.28 billion and $1.38 billion for the first quarter.[7] Netco said it earned $1.31 billion during the first quarter vs. $1 billion a year earlier.[12]
The Internet search engine giant said profits rose 31 percent in the first quarter on 42 percent revenue growth.[34] The increase came as the bank's revenue - a combination of net interest income and non-interest income - rose 9 percent in the quarter from the same time last year. The bank's results also were helped by its purchase last year of FNB Bancorporation Inc., parent of First Bank of Northern Kentucky Inc.[37]
AdSense revenues grew by 25% over the last year and 3% sequentially to $1.69 billion. Its paid clicks grew by 20% over the year, and 4% sequentially.[35] Yahoo forecast first-quarter net revenue at $1.28 billion to $1.38 billion.[21] Google reported Q1 revenue of $5.19 billion and profits of $1.3 billion.[34]
Analysts warned about drawing too strong a parallel between Google and Yahoo because Google has a much stronger search-advertising business and is more geographically balanced than Yahoo, whose revenue is.[29] Win an award and take the client to Cannes. Google makes the lions share of its revenue on a simple, yet elegant business model that builds on a well-known but less reported fact. People are more likely to notice ads for automobiles when they are looking for an automobile.[32]
The pleasing surprise, presented late Thursday, raised Google's recently sagging shares by nearly 17 percent, or $75.89, to $525.43 at the open of trade Friday. "This is mostly a relief rally," Stanford Group analyst Clayton Moran said. "People are relieved that things are not as bad as they thought."[10] Shares of Google soared, rising more than 21 percent and kick-starting a market rally that lifted the Nasdaq over 3 percent in early afternoon trading Friday after tech investors got behind the search giant's stock.[24] Investors were thrilled with Google's results, pushing Google's stock up 17 percent in after-hours trading to $525.96.[34]
In the after hours trading session on Thursday, Google stock was up 13% to $507.71.[35]
One thing is certain: there are interesting battles ahead. Since long-time staff were able to cash in the last of their pre-float share options last year, it has been open season for poaching Google engineers and executives. Typically, these are highly motivated individuals, already wealthy from their stock bonanza, who relish fresh challenges.[25]
The company has twice rejected Microsoft's bid to buy the company for $31 a share.[7] Klasell expects Microsoft'''s online unit to remain a dog. '''We note that this small division is undergoing multiple transitions, including the aQuantive integration, and the company'''s stated plans to continue to invest, with or without Yahoo, precludes near-term profitability,''' says Klasell. That lack of profitability for Microsoft'''s online division may point to an increased bid for Yahoo. First Yahoo has to deliver the goods to give Microsoft an excuse to raise its bid.[6] Following Yahoo'''s quarterly report, Microsoft will be set to take the stage. The company can still talk as if it could lower its bid. Actually increase its bid to get Yahoo to the table. Or just continue the banter.[6]
According to the publication, the announcement, which will be made tomorrow (April 22nd), will be an opportunity for the firm to demonstrate it is worth more than rival company Microsoft is bidding for it. Microsoft has set a deadline for discussions for April 26th, two days after it releases its own three-monthly earnings. Analysts anticipate that Yahoo! will meet its modest financial projections, which it confirmed earlier this month.[19] Analysts say no alternate deal scheme could force Microsoft's hand more than a major Yahoo earnings beat. "That's what we call the most powerful trump card they can play," Sandler said. Users may download and print extracts of content from this website for their own personal and non-commercial use only.[21]
Saturday marks Microsoft CEO Steve Ballmer'''s deadline for Yahoo to enter negotiations or face a proxy war. Got all of that? Bottom line: The next five or six days will critical. Yahoo and Microsoft could have a deal this time next week. Or the two parties will be on course for a protracted proxy battle. Another possibility: Yahoo and Microsoft will tango, but not accomplish much of anything. Hanging in the background of this drama are a few key secondary players.[6] "I think any company contemplating a merger or acquisition would want to get it through during the Bush administration," said Sidak, expressing a commonly held view in the legal community that, even if Republican nominee John McCain wins the 2008 election, there will be stricter controls. "Even if McCain is elected, I think there's reason to believe they'll be some tightening of antitrust enforcement," he said. Evan Stewart of law firm Spaeder Zuckerman LLP predicted that, when the dust settled on the various deal scenarios, Yahoo would lose its fight to stay independent, a view widely shared among Wall Street investors betting on the outcome. There are "very creative investment bankers providing Yahoo with all these very different end-games," he said.[26] The chief executive and his trusted lieutenants at Yahoo Inc. (YHOO) face a critical juncture Tuesday, when the embattled online giant issues what arguably will be the most closely watched quarterly report in the company's history. Hit the numbers that Yang and the gang have promised Wall Street, and Yahoo just might buy a little time to retain its coveted independence.[17]
It's time to hose the Wall Street and Silicon Valley exuberance over Google's quarterly earnings and regained stock-price momentum. Soon, they will be gnashing their teeth over how to assign valuations to Google's ambitious cloud computing endeavors and its reinvention of media ad models.[18] In another development, a source familiar with the matter confirmed that Yahoo is close to sealing a partnership with Google. The trials went well and both sides have moved closer to a more permanent partnership, The Wall Street Journal reported on Thursday.[10] Sources told the Wall Street Journal that the limited test of Google that Yahoo! set up went well.[23]
Yahoo! is reportedly getting closer to that controversial deal that would outsource its search advertising to Google. [23] Schmidt declined to answer a question about the chances of Google signing a long-term advertising contract with Yahoo - a deal that would likely face intense scrutiny from antitrust regulators. "It's nice to be working with Yahoo," Schmidt said. "We like them very much."[13]
Yahoo Search Marketing and Internet media firm Media Corporation have partnered to provide search results and advertising across Media Corp'''s extensive publishing network. Media Corp'''s chief executive, Justin Drummond, believes that adding Yahoo'''s paid search and content match solutions to their existing in-house publishing network will drive new revenue and enhance users''' experience. Media Corp'''s current advertising consists mostly of display and banner formats across such websites as gambling.com, onthebox.com and creditcardexpert.co.uk. [40] Microsoft, on the other hand, "fully supports H.B. 5765 as it stands today," Robert Gratchner, the company's director of privacy, testified last month. He noted that Microsoft "announced a set of robust privacy principles last July for online search and advertising." He told the General Law Committee the company believes the bill is "a thoughtful and well-crafted attempt to balance the need to ensure consumer privacy with important business realities of the Internet."[41] Microsoft has unveiled a revved-up Internet search engine geared to challenge its online arch-rival Google, reported the Associated Press (AP).[42] National advocates for Internet privacy view the showdown in the Connecticut General Assembly as a skirmish in the full-scale war between Microsoft and Google for dominance in the sphere of online marketing.[41]
Google's performance indicates the internet's advertising market - expected to generate $US44 billion in worldwide spending - remains robust, especially outside the United States. [13] It was a shot across the bow of the traditional advertising media model last week when Google announced first quarter profits jumping 30%. It's not just recessions, and fears there of, driving advertisers to click-through ads. It's the triumph of accountability. When advertisers talk about accountability, it's not a discussion of measurement accuracy. Ever since John Wannamaker said he didn't know which half of his advertising worked, the anxiety over pulling customers into the store, figuratively, fueled the brilliantly creative and largely effective advertising industry, paid for by those store owners, figuratively. Accountability, to them who pays the bill, means seeing (e.g. accounting) a direct relationship between ad money spent and cash in the till. The ad industry has invested a good portion of its creative energy convincing that store owner (or any of the giants of ad spending) of the merits of image, brand and customer relationships.[32] Google's paid clicks advertising also grew 20 percent in the first quarter over the same year-ago quarter, and 4 percent over 2007's fourth quarter.[34]
The search giant's profit jumped almost a third in the first quarter despite Wall Street concerns about the faltering economy's impact on its paid click business.[12]
At the present time, it gets traffic of more than 10 hours of video uploaded every minute on YouTube. It is getting better click through on these video ads than on its banner ads. During the quarter, Google continued to improve the quality of its search, increased the value for its advertisers, and improved its web experience.[35] Remnant Sale! Cheap Ads! Call Google! Google's ambition to reshape ' if not revitalize ' advertising sales has never been a secret. With the advantage of looking at advertising through totally new eyes, they bring a totally destructive process to traditional ad sales. The Web mind-set is nourished by this kind of positive deconstruction. Whole New World for Radio Ads: Google It could be good news for radio advertising. It could be great for commercial broadcasters. It could go nowhere.[32] Ad agencies, quick to spot a profitable trend, have moved full-throttle into Web 2.0. Their hot new business is turning dull and boring company websites into interesting and entertaining sales machines.[32]
The company has also been unable to challenge Google ( GOOG ) as the leading seller of text-based search ads, the biggest segment of the multibillion-dollar online ad market. [7] Nielson noted that Google's search portion of the U.S. market grew 25.8% year-over-year in February, 2008 while Yahoo search growth was 2.5%.[24] Given Yahoo'''s flirtation with Google on outsourcing search, what'''s the future of Panama? Yes, we know Yahoo'''s test with Google is limited, but that may not last for long.[6] Some of the talks involve outsourcing Yahoo's search to Google, a move expected to draw regulatory scrutiny as it could nearly eliminate any alternatives to Google's search network.[21]
The chance of a Yahoo earnings miss are very slim. The big question is whether Yahoo will significantly raise its outlook and detail a larger pact with Google. Such an outcome would force Microsoft'''s hand.[6] The Internet company is set to report earnings on Tuesday. A strong result could bolster its argument that Microsoft's original offer'substantially undervalues' the company.[20] Live was designed to provide users with tools to quickly find, view and organize Internet search results in categories including news, images, e-mail and news feeds, according to Microsoft.[42]
"The Justice Department would certainly want to take a serious look at that because it would mean that a firm that would want to take advertisements or to place advertisements (online) would have only one place to go," said Aaron Edlin, who teaches law and economics at the University of California at Berkeley. In recent years, Web search services have taken over from once popular portals or home pages, such as AOL, MSN or Yahoo's own home page, as the primary starting point for many consumers seeking information on the Internet.[26] Now, Microsoft, the Web's third largest search engine, is making a play for Yahoo, which is resisting.[41] Yahoo and Microsoft, which rank No. 2 and 3 in Web search respectively, are at a stand-off.[39]
The publication cited anonymous sources within Yahoo as saying that the outsourcing deal had been granted initial approval and will move forward. The arrangement would give Yahoo another weapon in its effort to ward off a takeover attempt by Microsoft. The Redmond giant has been attempting to push Yahoo's board to accept its US$42 billion proposal since February.[5] Some analysts argue Microsoft 's pressure tactics could backfire and spoil hope of Yahoo 's board agreeing to a deal.[2]
Yahoo has impressed many analysts by managing to cobble together a scenario where it might just drive off much-feared Microsoft.[2]
I cannot believe any company can force another one to sell. If Yahoo does not want to sell out to Microsoft, then it is Yahoo's prerogative to not sell (unless they already have a contract to do so). Please help me understand this article.[8] While Yahoo'''s 25 percent chunk of international revenue is enough to meet estimates, it won'''t enable the company to deliver a blowout quarter.[6] "This signals that the online advertising market is still healthy, which should help Yahoo get a better price for its company," said Peter Dunay, chief investment strategist at Meridian Equity Partners.[28] Google's results were higher than expected, with many analysts thinking the results would be sluggish due to slow online advertising.[36] Standing squarely against its fiercest digital competitors, Microsoft Corp. is pushing a bill in the Connecticut legislature that would help consumers learn how Internet trackers compile personal information about them for purposes of targeted online advertising.[41]
"Imagine an app platform that's cognizant of all of your devices. Now, as it so happens, we've had a team at Microsoft working on this specific scenario for some time, starting with the PC and focused on the question of how we might make life so much easier for individuals if we just brought together all your PCs into a seamless mesh, for users, for developers, using the Web as a hub." The company will have more to say at Web 2.0 Expo next week, as well as at an April 24 event, both taking place in San Francisco. A Microsoft representative said the company did not have any comment ahead of its events next week. [43] While Microsoft eventually hopes its Live Mesh effort will be a way for people to share data across all of their devices, the service that launches next week will be limited in several ways, CNET News.com has learned.[43]
The 'display' ad model used by traditional media, spots and space, is far from dead, though all traditional media, save outdoor, is losing ad share to the Web, widely reported in survey after report after survey.[32]
A. Banerji wrote: Is absolute figure (Redhat v Microsoft) the only determinant of success? A redhat may die tomorrow, M$can also follow it's worthy predecessors of the 60s - ICL died. were they dealing in freeware? It's all about adaptive business model. If Google is still doing well today (with mostly freebies for the average user), it's got nothing to do with the meaningless free v patent controversy.[38] On Second Life, by contrast, the core experience is all about seeing the avatars of other participants. Second Life is no stranger to commercial endeavors or the incursions of high-tech companies such as IBM. It's worth noting again, however, that the Apple patent application was submitted in 2006, during the first wave of corporate interest in what virtual worlds might offer to a profit-minded business. Do take a deep breath before concluding that this is a done deal. As Wagner James Au says on the GigaOm site--while also noting that "when a Second Life user built an unofficial Apple Store last year, it generated tremendous buzz (as the 270K views of this YouTube video suggest[44] Last year the government paid $110 billion in interest to the trust funds. This practice began in 1937 with the creation of the Social Security system during Franklin D. Roosevelt's administration. That first year the government paid $2 million in interest on money it borrowed from the retirement trust fund.[8] Total net revenue soared 42% to $5.19 billion from $3.66 billion a year ago.[10] Q1 revenues were $5.2 billion with EPS of $4.84 compared to the street'''s views of $5.1 billion with EPS of $4.52.[35] International revenues ''' which totaled $2.65 billion ''' were up 48% from Q4 and 47% from Q1 of 2007.[30]
Analysts estimated the company would report a loss of $4.75 billion, according to a survey compiled by Bloomberg.[31] Microsoft would have to shell out about $1.4 billion for every additional dollar it adds to the bid.[20] U.S. advertisers will spend $25.8 billion on Internet ads, eMarketer says, down 6.2% from earlier estimates but up 23% from $21.1 billion in 2007.[11] The agreement means the acquisition may be completed within two weeks, Agrium spokesman Ashley Harris said. Agrium offered about $2.16 billion U.S. for UAP in December to add stores that sell farm products such as fertilizers, chemicals and seeds. UAP, based in Greeley, Colo., has outlets in the U.S. and Canada.[31] Citigroup, the biggest U.S. bank by assets, reported almost $16 billion of writedowns and increased bad-loan reserves as customers fell behind on home, car and credit-card payments.[31]
NEW YORK / Citigroup Inc. posted a $5.11-billion U.S. loss on Friday, less than analysts' most pessimistic estimates, and cut 9,000 jobs.[31] NEW YORK - Citigroup's 9,000 job cuts and $14 billion in write-downs suggest that even if the worst of the credit market volatility is over, the industry is now in a conservative, cost-cutting mode.[37]
Google's cyberfollies have only just begun. These two areas alonecloud computing and advertisingwill create billions of dollars of new wealth. They will transform the fundamentals and expectations of consumer-centric, ad-supported and increasingly social enterprise.[18] The Word 'Copyright' Keeps Google Lawyers Busy Day And Night Whether it Be For Selling Alleged Trademark Infringements On AdWords Or Listing Third Party News Items On Its News Service Being a Google lawyer just got a whole lot busier ' the world's largest airline, American Airlines, is suing the world's largest media company, Google, for allegedly selling its trademarks as keywords to third parties that use them to advertise within Google's AdWords service.[32] Blogging software company Six Apart has announced a new "social media services" strategy that involves a new satellite office in New York, the acquisition of social-media consulting and development firm Apperceptive, and a new initiative to "provide new advertising, design, implementation, development and site optimization services to bloggers and companies of all sizes."[45]
The changed formula and estimates are now baked into Google's revenue numbers. The same will occur when Google brings front-end automation to display advertising across all media platformsgetting rid of the overwhelming inefficiencies and inconsistencies, especially in television and print.[18] ComScore's Mr. Abraham says some people have jumped to conclusions that comScore's data don't support. "People automatically assumed Google's revenue is going to be missing their target," he says.[11]
There'''s a growing perception that the firm'''s growth strategy ''' everything from online video ads and office software to wireless communications ''' is a scattergun approach that has not yet established any meaningful new revenue streams.[25] Of course, the pace of domestic online growth is slowing, even as double-digit increases continue, leveling off as any new business would.[18]
The biggest U.S. telecommunications provider, which has about 310,000 employees, said in a regulatory filing that its headcount would remain stable in 2008 as it hires more workers to support growth areas. AT&T; said the job cuts -- affecting its wireline telephone business in mostly "non-customer-facing areas" --are part of its efforts to streamline the company.The job cuts come as it faces declining traditional phone sales and rising costs for deploying high-speed Internet and video services.[31]
Yahoo won'''t get the international sales boost that other companies in the tech sector have. For instance, Google gets half of its sales from abroad.[6] NEW YORK / Caterpillar Inc. said first-quarter profit rose 13 per cent, beating estimates as equipment sales in China, the Middle East and emerging markets grew about seven times faster than in North America.[31] TORONTO / Investment returns at Canadian pension funds fell by an average 1.9 per cent in the first quarter ended March 31 as global stock markets fell, according to a survey released Friday.[31] The Canadian stock market fell 2.8 per cent in the first quarter, although strong prices for gold and crude oil mitigated the decline.[31]
Despite all that, AdSense continues to grow at a marginal growth rate of 3% per quarter. This slow growth is also derivative of the fact that AdSense still does not monetize the social networks it pushes ads to. [35] In recent quarters, Yahoo has been struggling with growth and expense issues.[7]
Google reported 20% global paid-click growth versus comScore's forecast 2% domestic growth, which sent investors and analysts into withdrawal before Google reported April 17.[18] San Francisco -- Investors appear ready to embrace tech giant Google Inc. again after weeks of hand wringing amid concerns over the company's ability whether the company's ascent would be slowed by a weakened U.S. economy.[10] The market is spooked by signs that Google is maturing into a rather unfocused company. In the U.S., commentators have made much of the fact that Fidelity'''s two biggest funds have been selling down their stakes in Google; if Fidelity managers have stopped believing in Google, the thinking goes, then maybe there are real problems there.[25]
The trend threatened to chip away at Google's earnings because the company typically gets paid by the click.[37] "Google also benefited from the weak dollar, earning an extra $202 million."[10] Google stunned its critics with a positive earnings report that showed little sign of an advertising decline, despite outside reports to the contrary.[34] The more immediate lesson from Google's quarterly earnings report was the reliance on metrics.[18]
The share surge was driven by the first-quarter results Google made public yesterday. [22] Much may depend on Yahoo!'s first-quarter results, which are due Tuesday, April 22. Poor and they play to Microsoft's hand, strong and they don't.[23] The other key date is the April 26 deadline that Microsoft gave Yahoo! two weeks ago to submit or be taken forcibly at a lower price than offered - a threat Yahoo! called "counterproductive."[23] The FINANCIAL -- According to Gulfnews, Yahoo faces a critical week that could decide whether the pioneering web company can remain independent or must surrender to an unsolicited takeover by Micro-soft.[2] The Web company struggles to decide whether it could remain independent or must surrender to an unsolicited takeover by Microsoft Corp.[26]
The PTO's action was first noted by the Mac news site MacNN. Judging by the patent application, the company apparently is looking to do more than just spruce up its own Apple Online Store. It seems interested in creating a whole new experience for consumers looking to buy its products via the Web.[44] In the absence of federal regulation of online data collection and advertising practices, several states, including New York, California, Utah and Illinois, have begun to consider state-level legislative remedies for consumers. • Require online third-party advertising networks to post notices about their data collection and how they use the personal data and data on Web site visits.[41]
The owner of the most popular online search engine, said first-quarter profits rose to $1.31bn, up 30% from the same period a year ago. [1] On 6 November last year, Wall Street valued the firm at an all-time high of $742. It has lost some 40% ''' currently trading around $450.[25] Google's strong showing outpaced Wall Street expectations, which had faded in recent months.[12]
'''We're obviously pleased with another strong quarter,''' said Eric Schmidt, CEO of Google, in a conference call on''April 17. Google's '''search, ads and apps''' strategy is beginning to show transformative effects, he added.'' [30] Speaking last week, Eric Schmidt, chief executive officer, said Google had yet to start substantial internal deliberations about how to deal with the issue.[46] "You don't win by dragging a company to the altar," Canaccord Adams analyst Colin Gillis said. "If you are going to pick a partner, treat them nice. Make them feel pretty." If the two do not reach a deal this week, the stand-off could drag on for months.[2]
Next week, Microsoft will launch a pre-beta "technology preview" open to about 10,000 testers in the U.S., according to a source familiar with the company's plans. File synchronization is an important component of Mesh, but not its only feature, the source said. Developers will be able to write their own applications for Live Mesh, with the idea that applications written for Mesh can then be accessed by a number of different devices. Another key aspiration for Live Mesh is that it work with more than just Microsoft products.[43] Microsoft???s purchase of Travel Search Engine Farecast tells me that the company is paying attention to the verticalization opportunity that I have been pointing at.[35] Superior search technology will not protect any company during bad economic times, especially one whose principal business is advertising ''' and advertising based on complex mathematical formulas at that. It certainly faces stiffer competition, in large part due to its own expansion plans.[25] Company executives said search advertising, thus far, has resisted the economic downturn. They say the fewer clicks will be outweighed by more cash spent per click.[10]
After the tepid response for Yahoo's search, Ballmer said jokingly: "Wow! We offered 31 bucks a share." [39] The net loss of 27 cents a share compared with net income of $233 million, or 24 cents a share, a year earlier, Norwalk, Conn. -based Xerox said.[31] Without the 54 cents a share in legal costs, earnings would have been 27 cents.[31]
Nearly two-thirds (62%) of all search queries worldwide were through Google. [32] A group of 10 companies, including Google, said the initiative is premature and would have unfairly broad implications. "It is impossible for advertisers to be sure they are not dealing with a Connecticut resident … so to comply, advertising networks would need to change all their practices with regard to all users," they said in a joint statement.[41] When Google can match what it knows - or statistically extrapolates - about the web surfer, all the better.[32] Google scans the contents of web pages and, like magic, places ads related to that content somewhere on the page.[32]
According to Google, aggregate paid clicks increased by about 20% compared to the previous year and 4% over Q4 2007.[30] In the past month or so, the first indications that a fast-growing Google was not an inexorable law of modern business have seen confidence tumble.[25] "What we've discovered about cookies is that every question leads to a one-hour conversation," said Schmidt. Maybe Schmidt should use some of his 20 percent free time to work on the cookie question, as there arguably is no bigger issue for Google.[46] Profits rose to around one billion Euros, a rise of 30 percent on the same time last year.[33]
In all, the company has raised more than $100 million, including funds from potential users like Procter Gamble. The company's batteries employ a nanophosphate electrode, and other tweaks that make them less likely than conventional lithium-ion batteries to experience a "runaway thermal reaction"--or explode to you laymen. Others in this category: Altair Nanotechnologies, which has a lithium-titanate battery, and EnerDel. [47] There are two funds: one for disability benefits and a much larger one for retirement benefits. The surplus in those funds at the end of fiscal 2007 (Sept. 30, 2007) was about $2.2 trillion, all in non-marketable U.S. Treasury bonds.[8] BOSTON / Xerox Corp., the world's largest maker of high-speed colour printers, had a $244-million U.S. first-quarter loss after settling a securities lawsuit from 2000.[31]
The company earned more revenue abroad than in the U.S., partly due to a slump in the weak dollar.[33] Operating Margins and revenues per employee were unprecedented, given the lack of a sales force and marketing event expenses.[18] Explaining the rise in revenues, Mr Schmidt said: "Paid click growth has been much higher than has been speculated by third parties."[36]
From GoogleEarth to Virtual Worlds, what was once perceived as a simple search engine has become a complex web of businesses, evoking memories of Yahoo!'''s own all-things-to-all-people ambitions. [25] The Redmond, Wash. -based company went public with a beta version of "Windows Live Search" and an updated toolbar at the Web site www.live.com. "We're unveiling a range of innovations that deliver an outstanding level of power and simplicity to search," the unit's vice president, Christopher Payne, said at a conference in southern California.[42] The company is moving beyond simply providing software, entering the lucrative business of bringing clients into gear with that whole "Web 2.0" thing that all the cool kids are talking about.[45]
The company's new office in New York, the hub of the advertising industry, is in the new-media-heavy SoHo neighborhood.[45] "Combined with the rich browsing and integrated searching services delivered by Windows Live Toolbar and Live.com, the new search service offers customers the next generation of unified services."[42] All new practical, fact-based search marketing data on what works and what doesn'''t - essential for search marketing (PPC & SEO) budget planning.[40]
For the moment, there is nothing interesting to report on the Microsoft-Yahoo saga. Once the deal gets done, which I believe it will, it would be interesting to see how Microsoft plays its hand. [35]
SOURCES
1. tehran times : Google shrugs off ad sales fear
2. The FINANCIAL, News That Makes Money, Business News & Multimedia - Clock ticks toward Microsoft's deadline for embattled Yahoo
3. For Yahoo, clock ticks down to Microsoft deadline | Special Coverage | Reuters
4. Google search ad outsourcing 'closer for Yahoo!' - Epiphany Search Industry News
5. Google 'close' to bailing out Yahoo - Business - iTnews Australia
6. Frenetic Week Ahead for Microhoo: Yahoo Could Turn Tables - Seeking Alpha
7. Judgment Day Nears In Yahoos Pursuit Of Higher Microsoft Bid
8. Ask AP: Forced takeovers, borrowing from Social Security - Forbes.com
9. The Associated Press: Google shares soar 20 percent to record 1-day gain
10. Google Profit Rises 30% Despite Slowing Economy | eBrandz Search Marketing & Technology News
11. Has Economy Hurt Google Search Ads? - WSJ.com
12. Google still cashing in
13. Google defies sceptics
14. MediaPost Publications - Signs Indicate Strong Quarter For Yahoo - 04/21/2008
15. :: AdWorld :: news ::
16. Free Preview - WSJ.com
17. UPDATE: Yangs Last Stand: Yahoo Earnings Could Sway Microsoft Deal
18. Diane Mermigas: On Media » Blog Archive » Google's Cyberfollies: Take A Number, Please
19. Yahoo!'s earnings 'to face scrutiny'
20. Deal Journal - WSJ.com : Microsoft Inches Closer to Yahoo Promised Land
21. Strong Google Earnings May Benefit Yahoo - News and Analysis by PC Magazine
22. KSBY 6 Action News, Weather, Sports: Covering California's Central Coast | Google shares soar 20% to record 1-day gain
23. Yahoo! Reportedly Getting Closer to Google Deal @ iPHONE DEVELOPER'S JOURNAL
24. Google earnings prove webs not lagging in advertising dollars
25. Are the glory days over for Google? - Money Week
26. Higher antitrust bar for Yahoo-Google- Hindustan Times
27. Microsoft jokes about Yahoo bid
28. [H] Enthusiast -
29. Free Preview - WSJ.com
30. Google reports strong Q1 results - DMNews
31. Business Browser
32. Google Money: the business model that rules
33. EuroNews EuroNews : Good for Google
34. Google Earnings Rose 42 Percent
35. Google Strong, but Microsoft Pays Attention to Verticals - Seeking Alpha
36. Google reports strong Q1 results | News | OneStopClick
37. The Enquirer - Business Digest
38. Viewpoint: Time for Open Source Software Vendors to Think Beyond Free @ OPEN WEB DEVELOPER'S JOURNAL
39. Microsoft jokes about Yahoo bid- Internet-News-Indiatimes - Infotech
40. Yahoo Search Marketing and Media Corp partner - Search Marketing - BizReport
41. Hartford Business
42. ADVANCE for Health Information Executives | Editorial
43. What's in Ray Ozzie's Mesh? | Webware : Cool Web apps for everyone
44. Apple stores to get virtual counterparts? | Crave : The gadget blog
45. Six Apart acquires Apperceptive, fires up client-centric strategy | Webware : Cool Web apps for everyone
46. Google going soft on its privacy pledge? | The Open Road - The Business and Politics of Open Source by Matt Asay - CNET Blogs
47. Companies to watch in green tech: Transportation | Green Tech blog - CNET News.com
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