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GOOG Down In A Weak Market
The market is stabilizing just over the flatline after the Richmond Fed missed and existing home sales came in in-line. Shares of GOOG are down over 1%. Investors continue look for Android momentum on smartphones and tablets and monetization; clarity on the Motorola acquisition; regaining ground in China; the resurgence of Google TV; continued growth of YouTube; expansion of social network Google+; and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, etc.). The stock trades at approximately 11.2x Enterprise Value / EBIT.Google Given The OK From China To Purchase Motorola (TechCrunch)
It’s been just over nine months since Google announced their intentions to acquire Motorola for $12.5 billion, and now it seems that the final pieces of the deal have fallen into place; Chinese officials have finally given the Google-Motorola deal their blessing. Google managed to score regulatory approvals from the U.S. Department of Justice and the European Commission back in February, but China’s anti-monopoly bureau leapt into action just a few days later. With this final approval in place, Google has confirmed that they expect purchase to be completed some time next week.
Make No Mistake, Google Is In The Content Business (BI Intelligence)
Google likes to keep up the pretense that it’s not a content company like traditional media companies that produce content and sell ads against them, and that it doesn’t compete with them; instead it provides platforms for them to distribute and monetise their content. Of course, that’s rubbish: Google does produce content; it just happens to be generated by computers and third parties instead of creatives on Google’s payroll. Google’s content is unique (extremely relevant search results), as is the way it’s consumed (often with purchasing intent), which makes for an outstanding business model.
PayPal Processing 60% Of All Web Transactions, Leaving Google Checkout In The Dust (VentureBeat)
PayPal processes 60% of web transactions and Google is the fastest payment gateway, according to New Relic’s study of the web’s most popular payment gateways (the modern cash register). PayPal is by far the biggest payment processor on the web. During the test period, PayPal processed over 66,000 payments, more than three times as many as the nearest competitor, authorise.net. Google Checkout came in fifth with just over 3400 payments. Google does win, however, in the speed category. Google Checkout’s average payment processing time was a blistering .26 seconds.
Users Are Uploading And Watching Staggering Amounts Of Video On YouTube (USA Today)
Happy belated birthday to YouTube, which celebrated its 7th anniversary with a some new stats on video uploads. Users upload 72 hours of video a minute to the website. No that’s not a typo. It’s nearly double the same time last year, when users were uploading 48 hours of video every 60 seconds. Users of the video-sharing site love watching clips, too. They’re logging 3 billion hours a month viewing videos on the site. Google seriously needs to monetise this better.
Google+ Not Doing So Well According To Study (Digital Trends)
RJMetrics looked at the public timelines of 40,000 randomly selected Google+ users to track just how successful it actually is. The results suggest that users don’t appear to be actually using it:
- The average Google+ post has less than one +1 vote, less than one reply, and less than one share
- There is an average of twelve days between publicly-viewable posts from users surveyed
- 30% of users who make a public post never make another, with users who make do multiple posts seeing a monthly reduction in the number of public posts on an ongoing basis
That last point is something that should worry Google. Sticky it is not.
Social Media By The Numbers: A New Blog Post (Simply Zesty)
There’s a great new blog posting dedicated to the latest social media figures. Some highlights:
- Facebook: 900 million active users, 500 million active mobile users, 300 million photos uploaded daily
- Twitter: 165 million users with 50% actively on mobile, 1 million new accounts created daily
- Instagram: 30+ million registered users with 58 photos uploaded per second
And then there’s Google+ at 90 million users and some other pretty sad metrics.
Facebook Versus Google: Who Will Win? (PC World)
Google certainly is serious about social and it’s no secret that Facebook wants more of Google’s advertising, but who will come out on top? Yes, Facebook has a huge head start in social compared to Google (with 10x the number of users), but Google+ users tend to be fiercely loyal. Unlike Facebook, Google+ is where you’re more likely to engage with strangers, many of whom reach out from countries around the world. It’s great for content aggregation and collaboration in addition to the services provided by the other major social apps. And Google’s products are an advantage.
Did Chrome Just Pass IE To Becoming The Most Popular Browser? (TIME)
Fresh stats from web analytics company StatCounter have Chrome edging past Internet Explorer in market share, at least for a week. It’s a landmark moment in web history; the fall of IE and the rise of Chrome. Except this is one of numerous companies which releases browser market-share figures, and there’s no consensus on the precise breakdown and there are enormous disparities. StatCounter’s figures (for May 14-20) are based on 3 million sites that use StatCounter’s analytics service and 15 billion monthly pageviews. But there’s Clicky, Net Applications, W3Counter, etc. Most of the others have IE still reigning as king.
Google Now Paying Microsoft A licence For Motorola Phones (Bloomberg)
Microsoft won a federal trade ruling that will force Motorola (now officially a Google company) to alter software on some of its Android-based mobile phones to keep bringing them into the U.S. A U.S. International Trade Commission judge found that Motorola infringed a patent covering a program by Microsoft called ActiveSync, which lets users generate meeting requests among a group. “We hope that now Motorola will be willing to join the vast majority of Android device makers selling phones in the U.S. by taking a licence to our patents,” said David Howard, Microsoft’s deputy general counsel. I bet. That’s how they are making money in mobile.
The EU Is Giving Google Weeks To Come Clean (All Things Digital)
The European Commission said that an investigation has determined that Google may have abused its dominance and outlined four specific antitrust concerns identified during the EC investigation. 1) Google may be unfairly exploiting its market position by giving preferential treatment to its own services; 2) The company may have copied material from rivals’ Web sites; 3) and 4) Relate to search advertising and allegations that Google requires sites “to obtain all or most of their requirements of search advertisements from Google, thus shutting out competing providers of search advertising intermediation services.” What would a settlement mean for competitors and advertisers?