Monday, December 19, 2005

“Do No Evil” Pays Off

Moreover, a technical analysis by AOL engineers two weeks ago raised questions about Microsoft’s advertising software…

That’s from an article in today’s New York Times describing one reason Microsoft’s attempt to secure a deal with AOL at Google’s expense appears to have failed.

I’ll admit to being surprised: I thought Microsoft would pay whatever the asking price was for AOL’s cooperation.

In the end, however, it looks like Microsoft’s own technology limitations and jumbled mass of acronym-infested web strategies—plus a billion in cash—are what caused AOL to stick with Google.

The Evil Empire may just have reached its outer limits. Score one for the “Do No Evil” guys.

Jeff Matthews
I Am Not Making This Up

© 2005 Jeff Matthews

The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews' recommendations.


Nissan said...

Google is the next evil empire. It's "Animal Farm" applied to business.

IMHO said...


I have started to think the same thing.

Fat_Jack said...

Article in National Journal says the press is just starting to turn against Google.

dkman said...

Could it be that Google is probably willing to throw a lot more cash at AOL than MSFT.

On a related note, looks like Google's stock is finally showing signs of cracking. Today's double volume reversal after hitting the all-time high is not a good sign for GOOG bulls.

The Irrational Investor said...

I have to agree about the bizarre Google corporate manifesto. It reminds me of stories I heard about "young pioneers" in the former soviet union. It's also strange that the founders buy a commercial jetliner with the proceeds of their stock sales when at about the same time in his career Bill Gates was still flying economy because first class didn't get him there any faster.

I was wondering if the MSFT/AOL negotiations were a game. There are plenty of Netscape alumni inside AOL, and I'm sure they would much prefer to work with the Googlers. I wonder how Ichan sees/views all of this.

For their part, MSFT have not put up much of a fight against GOOG, that's for sure.

the management said...

wouldn't read too much into this, surely? Technical analyses always raise questions; that's what they're for. The difference between a minor technical issue that can easily be engineered around and a big, insurmountable problem is usually determined by whether your boss has decided he likes the deal in the first place. Or maybe I have just spent my entire working life at incredibly dysfunctional organisations (though in this case my experience would probably be more relevant to AOL rather than less).