Google Inc.
rP os t
9-910-036
REV: APRIL 11, 2011
BENJAMIN EDELMAN
THOMAS R. EISENMANN
Go oogle In nc. op yo Go oogle’s mission is to organize the world’s inf n nformation and make it unive d ersally accessib and useful. ble — Google’s mission state ement In January 2010 Google lau
0,
unched the Ne exus One mo obile device— elegant to
—an
ouch-screen p phone that a added compr rehensive voi recognitio to reduce dependence on keyboar ice on e e rd-style text e entry. Since the fall of 20
008, Google’s Android ope erating system had power various m m red mobile phones. But
Google had extend its role w ded with Nexus O
One: Google designed the phone and planned to sell it e direct to consum tly mers. Was ther any limit to Google’s asp re o pirations? tC
Go oogle, based in Mountain V i View, Califor rnia, had gros revenues o $21.2 billion and an oper ss of n rating incom of $5.5 billion in 2008. A of year-end 2008, the co me As d ompany had 20,164 emplo oyees and cash and h equiv valents of $8.7 billion. (Exh
7
hibit 1 shows Google finan ncials from 19
999–2008.) Founded in 199 the
99,
company complete its IPO in August 2004 at $85 per share. Google’s share price exceeded $6 in ed 4 e 600
Janua 2010, givi ary ing the comp pany a $189 b billion marke value. Mea et anwhile, Google.com enjoy yed a
65.6% share of all U.S. searche in Novem
%
l es mber 2009; Ya ahoo.com, its closest rival had just 17 s l,
7.5%.1
(Exhib 2 outlines trends in se bit s earch engine market share Outside th United Sta
e.)
he ates, Google’s lead s was e even larger, exceeding a 90% share of s e search querie in numerou countries. (Exhibit 3 re es us eports marke share by co et ountry.)
Do
No
Sin its IPO, Google had la nce G aunched a flu urry of produ ucts that exp panded its do omain beyond web d search These inclu
h.
uded Gmail, Google Map Google Bo
ps,
9-910-036
REV: APRIL 11, 2011
BENJAMIN EDELMAN
THOMAS R. EISENMANN
Go oogle In nc. op yo Go oogle’s mission is to organize the world’s inf n nformation and make it unive d ersally accessib and useful. ble — Google’s mission state ement In January 2010 Google lau
0,
unched the Ne exus One mo obile device— elegant to
—an
ouch-screen p phone that a added compr rehensive voi recognitio to reduce dependence on keyboar ice on e e rd-style text e entry. Since the fall of 20
008, Google’s Android ope erating system had power various m m red mobile phones. But
Google had extend its role w ded with Nexus O
One: Google designed the phone and planned to sell it e direct to consum tly mers. Was ther any limit to Google’s asp re o pirations? tC
Go oogle, based in Mountain V i View, Califor rnia, had gros revenues o $21.2 billion and an oper ss of n rating incom of $5.5 billion in 2008. A of year-end 2008, the co me As d ompany had 20,164 emplo oyees and cash and h equiv valents of $8.7 billion. (Exh
7
hibit 1 shows Google finan ncials from 19
999–2008.) Founded in 199 the
99,
company complete its IPO in August 2004 at $85 per share. Google’s share price exceeded $6 in ed 4 e 600
Janua 2010, givi ary ing the comp pany a $189 b billion marke value. Mea et anwhile, Google.com enjoy yed a
65.6% share of all U.S. searche in Novem
%
l es mber 2009; Ya ahoo.com, its closest rival had just 17 s l,
7.5%.1
(Exhib 2 outlines trends in se bit s earch engine market share Outside th United Sta
e.)
he ates, Google’s lead s was e even larger, exceeding a 90% share of s e search querie in numerou countries. (Exhibit 3 re es us eports marke share by co et ountry.)
Do
No
Sin its IPO, Google had la nce G aunched a flu urry of produ ucts that exp panded its do omain beyond web d search These inclu
h.
uded Gmail, Google Map Google Bo
ps,
References: 2 Chad Bartley and Steve Weinstein, High Growth in Search Creates Opportunities for Niche Players, Pacific Crest Securities, November 4, 2003, p “Worldwide Web Domination,” Industry Standard, August 6, 2001. 4 Saul Hansell, “AOL Coaxes Google to Try Busier Ads,” New York Times, December 20, 2005. aspx, accessed January 10, 2009. 8 Robert Peck, Alexia Quadrani, Victor Anthony, and Julia Choi, “Google Cubes,” Equity Research, Bear Stearns, December 19, 2005, p 9 Saul Hansell, “Your Ads Here (All of Them),” New York Times, October 30, 2005, p Official Google Blog, September 17, 2009. 11 John Battelle, The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture (New York: Penguin Group, 2005), p Google Inc., Form S-1 Registration, April 29, 2004. Thomas R. Eisenmann, “Betting on Google’s Future,” Wall Street Journal, August 24, 2004, p. B2. 19 “Google: One Million Servers and Counting,” Pandia Search Engine News, July 2, 2007, http://www. pandia.com/sew/481-gartner.html, accessed January 10, 2010. Vise and Malseed, The Google Story (New York: Delacorte Press), 2005, p. 256.