Google taking punches

Future profits are in question at Google? There are reports that believe the $1 billion investment in advertising with AOL is a bust. They have a 5% stake in AOL/ Time Warner that looks like they will have to give the description of the program as a loss. Let us not cry or be worried for Google health, they did earn over $2.5 billion in the first half of the year already. This purchase  agreement was really so Google could keep AOL away from Microsoft sometimes the best offense is a good defense. The shuffling of the chairs an the deck of the Titanic has begun as AOL who after the deal was reached seemed to be worth around $20 billion is now said to be only worth $10 billion. They have begun to split up divisions into two groups between the Dial up operation and the online ads and tools. The dial up is probably going to eaten up by EarthLink that has had an eye on the AOL infrastructure for years. The other service is going to up for grabs between Yahoo, Microsoft or maybe even Google as a buy back or public offer. The bigger issue then all of that is that between the Viacom lawsuit over YouTube and this Google has made some mistakes. This is no surprise as it happens to Major Corporations all the time. The part that makes this a story is that for five years Google has been the Midas of technology with everything they touch turning to gold. It will be interesting to see how they move forward either with reckless abandon or with new cautious approach.

You get what you pay for
An freedom’s real high priced
W. Axl Rose 1991

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