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Monday, July 09, 2007

Postini to be Acquired by Google (not a search engine)

postini on tagtrendsI noticed Postini today via TagTrends. Hopping over to Techmeme, the big news is that Google plans to acquire Postini. More details via the Google blog and TechCrunch. Basics from the press release:
Google Inc. (NASDAQ: GOOG) announced today that it has signed a definitive agreement to acquire Postini, a global leader in on-demand communications security and compliance solutions serving more than 35,000 businesses and 10 million users worldwide. Postini's services -- which include message security, archiving, encryption, and policy enforcement -- can be used to protect a company's email, instant messaging, and other web-based communications. Under the terms of the agreement, Google will acquire Postini for $625 million in cash, subject to working capital and other adjustments, and Postini will become a wholly-owned subsidiary of Google.
The pace of acquisitions (and hirings) at Google is phenomenal. Do they really buy a company a week? As Google moves beyond being simply a search engine, what is it becoming?

Tags (byo w/ TagBuildr): , ,


Anonymous Anonymous said...

>>As Google moves beyond being simply a search engine, what is it becoming?<<

So long as 99+% of Google's revenue still comes from its search engine (and related market) advertising, it is still "simply a search engine."

Although, I guess when you consider its expensive acquisitions (that don't make it any money), you could say that Google is a search engine with "expensive hobbies."

Tue Jul 10, 03:00:00 AM EDT  
Blogger Richard said...

Interesting point about the "expensive hobby" acquisitions.

Regarding the 99% revenue figure, it's not all search engine advertising. There's a *massive* difference between search engine advertising and contextual advertising. Consider the revenue split for Google's Q1 2007 results:

Google Sites: $2.28 billion (62%)
Google Network: $1.35 billion (37%)

Much of the Google Network revenue (and perhaps a portion of the Google Sites revenue) is generated from contextual advertising. That has nothing to do with being a search engine.

I'd like to see the paid ads revenue broken out for all of the various AdSense products (search, content, domains, feeds, etc). It's not clear how much revenue comes from search advertising vs other kinds of advertising.

Tue Jul 10, 02:56:00 PM EDT  

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