The Google Investor is a daily report from SAI. Sign up here to receive it by email
GOOG Down In Positive Market
Stocks are surging today on indication that global central banks may act to foster growth. The S&P 500 crossed 1,400 mark for the first time in three months. Shares of Google are trading just below the flat line. Investors continue look for Android momentum and monetization of smartphones and tablets along with direction for Motorola; the vision of Google TV with hardware partners; continued growth and monetization of YouTube; expansion of social network Google+; and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, Google fibre, etc.). The stock trades at approximately 12.0x Enterprise Value / EBIT.
Nexus Q Delayed Because The Software Is A Mess (TechCrunch)
It’s not often that a company decides to postpone the launch of a high-profile hardware product indefinitely just days before it’s expected to ship the first units. But that’s exactly what Google did. Here’s the problem with the Nexus Q: it’s a stunningly beautiful piece of hardware that’s being let down by the software that’s supposed to control it. The good thing is, thanks to this postponement, Google has given itself a second chance to get things right (and if not, here are some hacks). Most importantly, the Q needs to support more apps. If you are going to make a device that is meant to be hooked up to a TV, why not allow streaming from Hulu Plus, Netflix and other services? It’s called Apple TV.
Google To Sell Motorola’s Set-Top Business (Light Reading Cable)
Google is expected to put Motorola’s cable assets up for sale as early as this fall, according to industry sources. Google has not yet started the formal sales process for the Home division, which makes and sells cable modems, set-tops, video processors, edge QAMs, cable modem termination systems (CMTSs) and video navigation software. Barclays Capital is rumoured to be the banker Google has hired for the sale. How much IP Google decides to retain will affect its asking price. One source estimated that Google might be able to get $2 billion for what’s left of the Home business after it figures out what IP it wants to retain.
Apple’s YouTube licence Expires, Users Will Have To Download Newest Version (Marketing Land)
Apple did away with Google Maps in iOS 6, but another of Google’s biggest properties won’t be available as a default option, either. The latest beta version of iOS 6 does not include the standard YouTube app. Why? Apple’s licence with Google to include YouTube in iOS has expired. Apple confirmed that YouTube will work in Safari and also noted that Google is making a new YouTube app that will be available in the App Store. The iOS YouTube app has languished for years without seeing any major improvements, but now Google can iterate and update its own YouTube app as it sees fit. And includes ads.
Chrome Claims One-Third Browser Share, Expanding Lead Against IE (VentureBeat)
Chrome eclipsed Internet Explorer (IE) in global market share back in May and is now leading by a significant margin of nearly 2%. StatCounter showed Chrome sliding past IE by a very slim margin a few months ago. Today, Chrome claims 33.81% to IE’s 32.04%. The situation has changed quite a bit since this time last year, when IE had 42.45% of the global browser market and Chrome claimed a mere 22.14%.
Google Could Be On The Hook For $1B For Authors Guild Case (Publishers Weekly)
If the Authors Guild prevails in its legal battle over Google’s library book scanning program the search giant could theoretically be on the hook for over $1 billion in damages. According to the Authors Guild motion for summary judgment, filed on July 27, the Guild asks the court for summary judgment in its favour, and the minimum statutory damage award of $750 per infringement. With as many as 4 million of the estimated 20 million books scanned by Google thought to still be under U.S. copyright, the damages could run into the hundreds of millions of dollars should Google lose.
Google Paying High Price To Keep Social Marketer Employees (TechCrunch)
After buying social marketer Wildfire for $350 million, Google wants to ensure it keeps earning money and the employees don’t bail. That’s why Google set up $100 million in earn-outs and retention bonuses, multiple sources confirm. One source verified the $350 million acquisition price tag and that the golden handcuffs amount to $100 million, twice the $50 million rumoured. The $450 million should be enough to inspire Wildfire’s daring founders Victoria Ransom and Alain Chuard to keep leading the 400 employee team who love them.
Google Dethrones Apple As Top Global Brand (Mashable)
Buzz over new and improved products has helped Google surpass Apple in Impact Media Value, making it the Top Global Brand according to General Sentiment’s Global Brands Report for the second quarter of 2012. Impact Media Value assigns a dollar value to the amount of buzz over a company in online news and social media, regardless of sentiment. Google scored $756.6 million in brand value, compared to former leader Apple’s $594.3 million.