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GOOG Off With The Market
The market continues to fall today on European debt fears. Shares of GOOG are off nearly 3% in early trading. Upcoming catalysts include continued Android growth; the release of Chrome operating system; regaining momentum in China; adoption and media partnerships of Google TV; and progress in other newer initiatives (location-based services and mapping, gaming, social, etc.). The stock trades at approximately 15x Enterprise Value / EBIT, inexpensive relative to historical trading levels and the broader Internet group.Google TV Might Be Dead Before It Even Has A Chance (TechCrunch)
Google TV might be in a bit of a pickle if a permanent 25% price reduction by Sony sale is any indication. The feature set is admittedly half-baked, the units are overpriced, and now this lower price seems to say that consumers aren’t biting even though there’s a commercial for the Sony units nearly every 20 minutes during prime time TV. If Google can’t disrupt big media, who can? Someone will have to figure out that media licensing model.
Google Near Groupon Purchase For $6 Billion (The New York Times)
Google is near a deal to acquire Groupon, the pioneering online discounter, for as much as $6 billion. A deal could be struck as soon as this week cautioning that the talks could still fall apart. At that price, Groupon would be one of Google’s largest acquisitions, dwarfing its $3.1 billion purchase of DoubleClick in 2007. Henry Blodget at Business Insider believes the deal can’t come fast enough. Its core business, search, is maturing, and as yet it has been unable to develop a second major growth engine.
The EU Investigating Google For Discrimination (Bloomberg)
Google is being probed by European Union antitrust regulators for allegedly discriminating against competing services in its search results and for stopping some websites accepting rival ads. The investigation surrounds whether Google’s AdSense contracts prevent publishers from striking deals to place ads from other services on their sites and look at allegations that Google limits advertisers’ ability to move data such as key search terms from AdWords to another service. Search engine expert, Danny Sullivan, believes the investigation is ridiculous. Google is being investigated for doing its job.
CNBC Highlights The Google Bear Stories (CNBC)
CNBC’s Jon Fortt talks about Google’s many recent bumps in the road including huge bonuses to retain its 23,000 employees (up from 1,600 people in 2003). It’s losing employees at a rate of 14x than it did in 2003. Sony slashed prices on it’s two Google TVs which are a permanent cut and not a Black Friday discount.
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