Friday, May 11, 2007

A bit like dancing

That's merging and acquiring for you. Acquire a partner, and merge with them. It doesn't matter their size--we're just dancing, you know. But in the case of Google, it appears size in fact does matter. Those snobs.

Reuters reported today that:

Google Inc. has become more comfortable doing big acquisitions but still sees small technology deals as its primary thrust for buying businesses, its chief executive said on Thursday.


Of course, Google's CEO Eric Schmidt quickly retorted that the big companies they acquire (YouTube, DoubleClick) are to "plug holes in businesses." And this comes to no surprise with rumors of Yahoo! and Microsoft merging through Microsoft's hefty acquistion (the share price of Yahoo! went up leaps and bounds after the rumor broke, according to the NY Times).

All this interesting in the sense of trends.

We look at the sort of big 3 or 4 in terms of internet dominance: Google, Yahoo, Microsoft, Time Warner, etc. etc. And all are acting like politicians vying for the acceptance and vote/support of the undetermined, unsatisfied voter. Of course, as consumers, we have much to choose from in terms of options for what we want out of our internet providers (for loss of a better word). But like politics, Oscar races, etc., an underdog is always there; stealing the show in the 4th quarter. So it would not surprise me if there is another service that enters the arena in the next 6 months and threatens the aforementioned 4.

Whether or not merging and acquiring allows for successful entrances into emerging markets--especially in e-markets--this is left to be determined. Yet, watching Google, one can surmise that collecting various forms of Web 2.0ing merely only walks on the trends, rather than actually getting under the soil, cultivating solidity.

But we'll see.

R.

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